Germany's Emissions Trading Success

In 2023, Germany witnessed a notable 2% reduction in CO2 emissions, largely attributed to the rise of heat pumps and electric vehicles, alongside a milder winter. Approximately 1,900 companies are now required to acquire CO2 certificates under the national emissions trading scheme, with prices set to escalate from 25 euros in 2021 to 55 euros by 2025. The proceeds from this initiative are directed into the Climate and Transformation Fund, supporting vital energy transition and climate protection efforts.

The scope of the national trading system has expanded to include smaller firms, emphasizing its growing influence in driving emissions reductions. This collective effort marks a significant step towards achieving Germany's environmental goals.