Germany increases revenue from CO2 trading in 2025

08.01.2026

Source: E & M powernews

Germany raised more than 21.4 billion euros from emissions trading in 2025. According to the German Emissions Trading Authority, the money flows into the Climate and Transformation Fund.

Germany generated significantly higher revenue from the sale of greenhouse gas certificates last year. According to the German Emissions Trading Authority (DEHSt), revenue from European and national emissions trading amounted to more than 21.4 billion euros in 2025. In the previous year, revenue amounted to 18.5 billion euros. The DEHSt is an authority within the Federal Environment Agency (UBA) and is responsible for the implementation of emissions trading in Germany.

The revenue flows entirely into the Federal Climate and Transformation Fund. The federal government uses this special fund to finance measures for the energy transition and climate protection. According to the UBA, these include programs for the energy-efficient refurbishment of buildings, the climate-neutral conversion of industry, the development of a hydrogen economy and the expansion of the charging infrastructure for electric vehicles.

Highest revenue since 2008

Since the introduction of emissions trading in 2008, revenues have reached a new level. According to DEHSt, the cumulative revenue from the sale of emission allowances exceeded the 100 billion euro mark for the first time in December 2025. UBA President Dirk Messner described emissions trading as a key cross-sectoral instrument for climate protection. "CO2 pricing, together with other measures, provides incentives for the climate-friendly restructuring of the economy and society," said Messner.

Emissions trading is based on the principle that one certificate is required for every tonne of CO2 emitted. There are two systems in Europe. The European emissions trading system (ETS 1) covers power plants, large industrial plants, intra-European air traffic and maritime shipping. Companies must surrender allowances for their emissions to the Emissions Trading Authority.

The allowances are purchased via auctions on the Leipzig-based European Energy Exchange (EEX), among others. The total quantity available decreases annually in order to gradually limit emissions. The average price for a European certificate in 2025 was €73.86 per tonne of CO2, compared to €65 in 2024. Proceeds from these auctions amounted to €5.4 billion in 2025, slightly below the previous year's figure of €5.5 billion.

National emissions trading generates 16 billion euros

Income from national emissions trading grew much more strongly. The federal government took in around 16 billion euros here, around three billion euros more than in 2024. The main reason for this was the higher price of national allowances, which rose from 45 euros per tonne of CO2 in 2024 to 55 euros in 2025.

National emissions trading aims to reduce emissions in the heating and transport sectors. Fuels such as petrol, diesel, heating oil, liquid and natural gas as well as coal are covered. Since 2024, the incineration of waste has also been subject to the CO2 levy. It is levied on companies in the mineral oil industry or gas suppliers, who generally pass the costs on to the end consumer. Unlike in the European system, the national certificates have not yet been limited in terms of quantity and the prices have been set by law.

In 2025, a total of 294 million national emission allowances were sold, almost as many as in the previous year. The acting head of the UBA's Climate Protection, Energy and German Emissions Trading Authority department, Christoph Kühleis, sees this as an indication of the great need for action. "The high sales volumes reflect the excessively high level of emissions in the building and transport sector in view of the climate targets," says Kühleis.

Auction also for fuel emissions from July

National emission allowances are also to be auctioned for the first time this year. According to the DEHSt, prices will be between 55 and 65 euros per tonne of CO2. The auctions on the EEX are scheduled for July.

In the future, national emissions trading is to be largely merged into a European emissions trading system for fuels (ETS 2) from 2028. The introduction of this system was originally planned for 2027, but was postponed in order to avoid sharp price increases for fuel and heating.

The report by the German Emissions Trading Authority is available online.

Author: Susanne Harmsen