Revenue from European and national emissions trading in Germany has risen to a new high of 18 billion euros in 2023. This is an increase of 40 percent compared to the previous record year of 2022. These figures were announced by the Emissions Trading Authority (DEHSt) at the Federal Environment Agency at the beginning of January.
The European Emissions Trading Scheme (EU ETS) records greenhouse gas emissions from power plants and energy-intensive industrial facilities as well as intra-European aviation. Companies must buy allowances for emissions at auction. Auction proceeds of around €7.7 billion were generated in the EU ETS in 2023, which is €0.9 billion (around 12 percent) more than in 2022.
The increase is due to an increase in auctioned allowances from 85 million tonnes of CO2 in 2022 to 92 million tonnes of CO2 and an increase in the price of these allowances.
Levers for achieving the climate targets
In Germany, however, revenues from the national emissions trading system (nEHS) for goods and transport rose even more sharply, from 6.4 billion euros in 2022 to 10.7 billion euros in 2023.
UBA President Dirk Messner emphasises the steering effect of emissions trading: “CO2 pricing via emissions trading is a decisive lever for achieving the statutory climate targets. The recently adopted European climate package emphatically emphasises the importance of this instrument. In Germany, over 85 percent of emissions are already covered by emissions trading, which provides significant impetus for the climate-friendly restructuring of our society.”
Provided that the revenue from carbon pricing was used in full to actively support the climate-neutral transformation in terms of social and economic policy, emissions trading could combine ambitious climate protection, social compatibility and economic competitiveness. Messner also emphasised that politicians should swiftly introduce the climate money for private households agreed in the coalition agreement.
The proceeds from emissions trading will be channelled in full into the Climate and Transformation Fund (KTF), which will be used to finance measures to achieve Germany's energy and climate policy goals.
