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Germany's CO2 Emissions Decrease in 2023

Analysis of Germany's national emissions trading scheme, showing a decrease in CO2 emissions due to several factors, including increased use of renewable energy and electric vehicles.

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Germany

Germany Climate ChangeEnergy SecurityEnvironmentEnergyClimateEmissions

Deutsche Emissionshandelsstelle (Dehst)UmweltbundesamtBundesregierung

How does the rising price of CO2 certificates contribute to climate action?: The rising price of CO2 certificates, which are purchased by companies like oil firms and city utilities, incentivizes climate-friendly practices and contributes to the funding of climate and energy transition measures.
Where does the money from the sale of CO2 certificates go and how is it used?: Funds generated from the sale of CO2 certificates are channeled into the Climate and Transformation Fund (KTF) to support energy efficiency, decarbonization, renewable energy, e-mobility and charging infrastructure.
How did the inclusion of smaller companies' coal usage affect the 2023 certificate sales figures?: The inclusion of smaller companies' coal usage in 2023 increased the demand for certificates by 3.5 million, but even without this effect, certificate sales decreased by 3.2%.
What was the overall change in CO2 emissions in Germany's national emissions trading system in 2023?: Germany's national emissions trading system (nEHS) saw a 2% decrease in CO2 emissions in 2023 compared to 2022, primarily due to increased use of heat pumps and electric vehicles, as well as a mild winter.
Which sectors are included in Germany's national emissions trading scheme and how has the price of certificates changed over time?: The nEHS includes around 1900 companies and covers sectors like transportation (refineries) and heating (oil and gas sellers). The price of certificates increased from 25 euros per ton in 2021 to 55 euros in 2025.

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