German’s federal government has launched two regulations to implement the climate package that was approved in September 2019.
A national emissions trading scheme for fuels will now start at a fixed CO2 price of €25/t in 2021, corresponding to €7c/l for gasoline, €8c/l for diesel and heating oil and €0.5c/kWh of natural gas. Certificates will be issued at a fixed price increasing to €55/t by 2025. From 2026, the carbon price will be determined through auctions, with a price corridor of €55/t to €65/t. Income from national emissions trading will be used to relieve the EEG renewable surcharge on electricity bills, while additional protection measures will protect long-distance commuter. The text also introduces measures to maintain competitiveness and avoid carbon leakage as soon as emissions trading begins in 2021.
Germany aims to reach GHG neutrality by 2050. This corresponds to a 55% cut in greenhouse gas (GHG) emissions by 2030 compared with 1990. Preliminary figures show that GHG emissions declined by 6.3% (-54 MtCO2eq) in 2019 to 805 MtCO2eq, the largest annual decrease since 1990. GHG emissions are now 36% lower than in 1990.
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