Renewables expansion and weaker economy drive record German EU ETS emissions reduction
Germany’s weakened industrial sector coupled with the expansion of renewable energy sources have resulted in a record drop in the country’s greenhouse gas emissions traded in the EU Emissions Trading System (EU ETS) in 2023, according to the German Emissions Trading Authority (DEHSt), part of the German Environment Agency (UBA). The EU ETS covers emissions from energy-intensive industry, the energy sector and intra-European air traffic. In 2023, the 1,725 stationary plants in Germany covered by the EU ETS emitted around 289 million tonnes of carbon dioxide equivalents (CO₂-eq) – a drop of 18 percent compared to the previous year and the largest decline since the EU ETS was established in 2005.
Emissions from energy plants fell by 22 percent, and in the industrial sectors they fell by 10 percent. “The significant decline in emissions in the energy sector is a big step towards achieving our climate protection goals,” said UBA president Dirk Messner. “This is mainly due to the expansion of renewable energy sources and the decline in coal-fired power generation.” In the industrial sector, however, the falling emissions are mainly due to the decline in production resulting from the effects of Russia's war against Ukraine. “We must therefore rely on a consistent transformation strategy for our industry that combines economic competitiveness with ambitious climate protection,” Messner added.
Germany recorded record revenues of more than 18 billion euros from emissions trading auction proceeds in 2023 – including the national carbon pricing scheme for transport and heating fuels – all of which went into the federal government's Climate and Transformation Fund, the special state budget earmarked for climate protection measures such as the transition of heating systems in the country's homes. According to projections, however, Germany is still set to miss its 2030 emissions reduction targets.
