Design of a first law to change the fuel emission trade law

Laws and Policies

CCLW

CCLW national policies

Introduction to the templates transferred to the committees in accordance with Section 80 (3) and Section 92 of the Procedures

Second Law amending the BEHG

Law on a national certificate trade for fuel emissions

Amended

Approved

The law on national certificate trading for fuel emissions (Brennstoffemissionshandelsgesetz) is part of the 2030 climate package and introduces emissions trading for the heating and transport sectors from 2021 onward, covering all fuel emissions that are not regulated by the EU Emissions Trading Scheme (ETS). It notably aims at avoiding carbon leakage. Certificate prices were agreed in parliament around October 2020. The German ETS will have a fixed price from 2021 to 2025 and will subsequently increase to EUR 55 (USD 61)/tCO2e in 2025. <a rel="noopener noreferrer" href="https://openknowledge.worldbank.org/handle/10986/37455" target="_blank">According to a World Bank report</a>, "in 2026, allowances will be auctioned in a price corridor ranging between EUR 55 (USD 61)/tCO2e and EUR 65 (USD 72)/tCO2e. From 2027 onwards, allowance prices will be set by the market unless the government proposes a new price corridor in 2025". On November 9th, 2022, the Second Law amending the Fuel Emission Trading Act entered into force, amending the fuels subject to tax-free use in accordance with Section 37, Paragraph 2 of the Energy Tax Act to be included in the domestic emissions trading market, provided that these fuels are not already subject to EU emissions trading and stipulating that the reporting obligation applies from January 1st, 2024 for the fuels now covered by this amendment.

Fuel Emissions Trading Act (BEHG)