Germany earns record 13 billion euros from carbon pricing


Europe’s carbon market and national scheme for heating and transport brought Germany a record 13.2 billion euros in 2022, the Federal Environment Agency (UBA) said on Tuesday.

Germany generated 6.8 billion euros with European emissions trading in the energy and industry sectors, up 28% on its previous record intake in 2021 due to the rising cost of emissions allowances. EUAs averaged a price of 80.32/t euro last year, compared to 52.50/t euro in 2021, the UBA said.

Revenues have more than tripled since 2020 owing to tighter supply of carbon allowances, the UBA added. Germany auctioned around 85 million allowances last year, compared to 101 million the preceding year.

The highest German auction price cleared at 96.87/t euro on 19 August 2022.

The revenues flow into Germany’s Climate and Transformation Fund to support programmes including measures for energy efficiency, the expansion of electromobility and development of the hydrogen industry.

Germany also raised 6.4 billion euros through its emissions pricing scheme for heating and transport launched at the end of 2021 complementing the EU ETS. This involved the sale of around 217 million allowances at fixed prices of 25-30/t.

Revenues from this scheme fell by roughly 800 million euros relative to the prior year, however.

“The noticeable decline in certificates sold…is unfortunately not due to falling emissions in the transport and building sectors,” said Juergen Landgrebe, the head of the German emissions trading authority within the UBA.

Landgrebe attributed the decline to lawmakers’ decision to delay a scheduled increase in the price of these emissions to 35/t euro by one year. This had caused some companies to put off their purchases for 2022 until this year, he said.

Last December, negotiators from the European Parliament, member state governments and the European Commission reached a consensus to strengthen the existing carbon market for industry and the power sector, introduce a new carbon price for fuels in the buildings and transport sectors, and set up a fund to help consumers deal with the costs.

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