Climate fund receives 18.5 billion euros from emissions trading 2024

08.01.2025

Source: E & M powernews

The state raised 18.5 billion euros from the sale of CO2 certificates in the previous year. This money flows into the Climate and Transformation Fund at the Federal Ministry for Economic Affairs and Energy.

On January 7, the Federal Environment Agency presented the revenue calculation from CO2 certificate trading in 2024. According to this, 18.5 billion euros flowed into the Climate and Transformation Fund (KTF), around 100 million euros more than in 2023. 5.5 billion euros came from the ETS and 13 billion euros from the NEHS. The calculation was prepared by the German Emissions Trading Authority (DEHSt) in Berlin, which is part of the Federal Environment Agency (UBA). The office suggested financial compensation for private individuals, in addition to the state subsidies for climate protection, which are paid out of the KTF.

The KTF is used, for example, to promote the energy-efficient refurbishment of buildings, the decarbonization of industry, the hydrogen economy and the expansion of the charging infrastructure for electric cars. The purchase of buses with alternative drive systems by transport companies is also specifically subsidized. The pricing of greenhouse gases is intended to give businesses and consumers an incentive to use less fossil fuels.

Two emissions trading systems merge

There is a national and European trading system, NEHS and ETS for short. Power plants, large industrial plants, intra-European air traffic and, for the first time in 2024, maritime traffic require European allowances. They must surrender one certificate per tonne of CO2 emitted to the Emissions Trading Authority as part of the ETS. They can purchase these emission allowances at auctions on the European Energy Exchange (EEX) in Leipzig, among other places.

Around EUR 5.5 billion was generated in the ETS in 2024, which is around 28% less than in 2023. The average price of European emission allowances fell from just under EUR 84 to EUR 65 per tonne. DEHSt believes that the main reasons for the decline include lower demand from coal-fired power plant operators and "mixed economic development in the EU" overall. In the ETS, the quantity of allocated emission allowances is reduced annually in order to gradually limit emissions more and more.

National emissions trading generated 13 billion euros

Revenue from national emissions trading (NEHS) for fossil fuels for heating and as fuels rose by 21 percent to 13 billion euros. Gas suppliers or companies in the mineral oil industry, for example, have to pay this. They then pass them on to consumers. In contrast to the European certificates, the national certificates are not currently subject to a shortage.

The CO2 price in the NEHS is set by the state and amounted to 45 euros per tonne last year. From this year, the price will rise to 55 euros per tonne of CO2 emissions, which promises even higher revenues. From 2026, the national price will initially be set within a corridor and then freely on the market, as is already the case in the ETS. Experts then expect CO2 prices to be significantly higher than at present.

UBA President calls for climate money

UBA President Dirk Messner explained that CO2 pricing could provide significant impetus for the climate-friendly restructuring of society. The proceeds from emissions trading have a decisive role to play here. These funds must be used in a targeted manner to support the climate-neutral transformation through social and economic policy, as promised in the 2021 coalition agreement, he demanded. "In order to ensure compensation for private households even if CO2 prices continue to rise, we now need climate money quickly in combination with support programs for particularly affected population groups," said Messner.

The head of the Emissions Trading Authority, Daniel Klingenfeld, named more CO2 savings in the transport sector as a challenge for climate protection. He suggested that this could be achieved by expanding electromobility, reducing company car privileges and other climate-damaging subsidies. These measures would have to be embedded in a strong emissions trading system. "We have high hopes for the European Emissions Trading Scheme for fuels, which will be launched in 2027 and into which national emissions trading will be transferred," explained Klingenfeld.

Author: Susanne Harmsen