07/10/2023
Source: Energy & Management Powernews
In 2022, the approximately 1.730 stationary plants in Germany covered by the European Emissions Trading Scheme (EU-ETS) emitted around 354 million metric tons of carbon dioxide equivalents.
Compared to the previous year 2021 (355 million metric tons), total emissions in 2022 changed only marginally. In the relevant sectors of energy and industry, the trend was in the opposite direction: emissions from energy plants rose by 3 percent, while those from industry fell by 6 percent. This was due to the war against Ukraine and the associated distortions on the energy markets, according to the German Emissions Trading Authority (DEHSt) at the Federal Environment Agency (UBA).Dirk Messner, President of UBA, explained: "Before the pandemic, there were significant declines in emissions from German EU ETS plants. This trend has stopped for the time being. As a result of the Russia aggression, emissions are stagnating at pre-pandemic levels and we are even observing a renewed increase in coal firing." He added that it was now necessary to take decisive countermeasures and move away from fossil energies. The expansion of renewables needs even more speed, he said. "We must phase out coal by 2030. The now reformed emissions trading, with significantly lowered emissions caps from 2024, can provide tangible impetus for this."
Creating financial leeway for decarbonization
Jürgen Landgrebe, head of the "Climate Protection, Energy, German Emissions Trading Authority" department at UBA, added: "The latest decisions on the realignment of European climate policy rely on an ambitious reform of emissions trading. This strengthens its role as a central cornerstone of European climate policy." In addition to lowered emissions caps, the share of free emissions allowances would also decline further in the future. At the same time, the money raised from the auctions would create significant financial leeway to fairly cushion the social consequences of decarbonization."
Emissions from energy supply in Germany rose by 3 percent to 242 million metric tons of CO2, the second year in a row. In the energy sector, natural gas use in electricity production fell due to the sharp rise in gas prices: Despite the highest prices since the introduction of the EU ETS, averaging over 80 euros per emissions allowance, many coal-fired power plants were more economical to operate than gas-fired power plants. That is why the use of lignite and hard coal for electricity production increased significantly compared to 2021.
German industry emissions fell 6 percent year-on-year to 112 million metric tons because less was produced. This is the lowest level since 2013. Emissions fell significantly in almost all sectors: most in the chemical industry (18 percent), followed by non-ferrous metals (15 percent). Only emissions from refineries increased by 4 percent.
Similar development in Europe
Emissions from all installations participating in the EU ETS (27 EU member states plus Iceland, Liechtenstein and Norway) also changed only slightly in 2022: according to the European Commission, they fell by 1 percent and stood at around 1.32 billion metric tons. The main factors behind this development - analogous to the situation in Germany - were an increase in coal-fired power generation and declines in industrial production.
Emissions from electricity generation rose by around 2 percent, while emissions from industrial plants fell by around 5 percent. Compared to 2005 - the start year of the EU ETS - EU ETS emissions across Europe have fallen by around 38 percent, a greater decline than in Germany (around 31 percent). The current emissions level is thus 24 percentage points below the newly adopted target for 2030 (minus 62 percent). In the remaining eight years, the reduction rate must thus increase significantly.
Author: Günter Drewnitzky
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