More than 18 billion euros
The federal government achieves record revenue through the CO2 price
January 4, 2024, 2:21 p.m
Emissions trading in Germany billions: A total of double-digit billions are expected to flow from certificate trading into the climate and transformation fund. One area in particular brings a windfall for the federal government.
Revenue from European and national CO2 emissions trading rose again to a record high in Germany last year. According to the Federal Environment Agency, the state received around 18 billion euros from certificate trading in 2024, all of which will flow into the Climate and Transformation Fund (KTF). Compared to the previous record year of 2022 with revenue of 13 billion euros, this is an increase of around 40 percent.
European certificate trading includes greenhouse gas emissions from the energy sector, energy-intensive industrial plants and intra-European aviation. According to the information, auction revenues of around 7.7 billion euros were achieved in 2023.
This means that revenue increased by around twelve percent compared to the previous year (2022: 6.8 billion euros). The main driver for the increased total revenue in Germany from carbon dioxide pricing was the national emissions trading system for heat and transport. According to the Federal Environment Agency, revenue here rose by 67 percent compared to the previous year to around 10.7 billion euros (2022: 6.4 billion euros).
Emissions trading is a “crucial lever” for climate goals
According to the German Emissions Trading Authority, the massive increase in certificates sold in national trading is not due to increased emissions in the transport and building sectors. Based on preliminary estimates, emissions are expected to fall in 2023 compared to 2022. The reason for the increase was rather the great need for companies to catch up. After politicians decided not to raise the CO2 price in 2023, they postponed the purchase of their certificates until 2023. The fixed price was 30 euros per certificate in 2022 and 2023.
The aim of emissions trading is to reduce greenhouse gas emissions. The companies involved receive pollution rights, so-called certificates, which allow them to emit certain amounts of climate-damaging carbon dioxide. “CO2 pricing through emissions trading is a crucial lever for achieving the legal climate targets,” explained Dirk Messner, President of the Federal Environment Agency.
“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,” he emphasized. It is now crucial that all income from CO2 pricing be used for “active social and economic policy support of the climate-neutral transformation”.