Germany raises record €18.5 billion in carbon emissions trading

Revenue from the sale of carbon allowances in Germany reached a record high in 2024, the German Emissions Trading Authority (DEHSt) said on Tuesday, reported dpa.

Sales raised €18.5 billion ($19.2 billion), around €100 million more than in the previous year, said the official body, which is part of the Federal Environment Agency.

"2024 was a good year for emissions trading, but there is still a lot to do," DEHSt head Daniel Klingenfeld told dpa.

The pricing of greenhouse gases - which occurs at both the national and the European level - is intended to incentivize businesses and consumers to transition away from fossil fuels.

Germany's so-called carbon dioxide (CO2) tax is levied on petrol, diesel, heating oil and natural gas.

Revenue from national emissions trading for heating and transport rose by 21% to €13 billion in 2024.

The funds flow directly into Germany's climate and transformation fund, which is used to finance measures to facilitate the energy transition and protect the environment, including refurbishing buildings, expanding electric vehicle infrastructure and de-carbonizing industry.

The CO2 price in national emissions trading was raised from €45 to €55 per ton at the turn of the year, which could have a serious impact on German consumers.

UBA President Dirk Messner explained that carbon pricing could provide significant impetus for the green transition, but that it must be used in a targeted manner to complement social and economic policy.

"In order to ensure compensation for private households, even if CO2 prices continue to rise, we now need a climate bonus in combination with support programmes for particularly vulnerable population groups," Messner said.