German Emissions Trading Authority

Legislation

From the global Kyoto Protocol to the German Allocation Regulation: There are numerous laws to fight climate change. The European Union’s legal requirements are implemented by the respective national laws and regulations of the European Member States.

International

Berlin Mandate

The first Signatory Parties Conference took place in Berlin in 1995. The Berlin Mandate laid the foundation for the Kyoto Protocol, which came into force ten years later.

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Marrakesh Accords

The Marrakesh Accords are the result of the 7th Climate Conference's negotiations, which took place in Marrakesh in 2001. They include decisions regarding the Kyoto Protocol, the project mechanisms, sinks, and technology transfer.

United Nations Framework Convention on Climate Change

The political process leading to climate protection began in the late 1980s. Its first result was the Climate Convention, signed by almost all countries in Rio de Janeiro in 1992. Its proper name is United Nations Framework Convention on Climate Change (UNFCCC). It contains the objective "to achieve, in accordance with the relevant provisions of the Convention, stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. All countries are called upon to contribute "in accordance with their common but differentiated responsibilities and respective capabilities."

Kyoto Protocol

The Kyoto Protocol was adopted in 1997 by the Third Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC). It came into force in 2005 and is the world's first binding treaty under international law to curb climate change. It obliges the participating countries to reduce emissions of climate-damaging gases.

It includes two commitment periods - the first from 2008 to 2012 and the second from 2013 to 2020, during which the industrialised countries listed in Annex B of the Protocol undertook to reduce their greenhouse gas emissions. The second commitment period (2013 to 2020) of the Kyoto Protocol, which was adopted at the eighth Conference of the Parties (CMP 8) to the Kyoto Protocol in Doha in 2012, ended on 31/12/2020.

Paris Agreement

The Paris Agreement is the follow-up agreement to the Kyoto Protocol. It was adopted on 12/12/2015 at the Conference of the Parties to the Framework Convention on Climate Change and entered into force on 04/11/2016. From 2021, the agreement adopted in 2015 will also apply to global climate protection. The international community is committed to limiting global warming to well below 2 degrees Celsius, but preferably to 1.5 degrees Celsius, compared to pre-industrial levels. For the first time, not only industrialised countries, but also developing and emerging countries are obliged to make climate protection contributions. The EU has committed to reducing its greenhouse gas emissions by at least 55 per cent by 2030 compared to 1990 levels.

Information and research (available in German only)

European Emissions Trading System (EU-ETS 1)

Europe

Accreditation and Verification Regulation

This regulation is the legal basis for the verification of greenhouse gas emission reports, tonne-kilometre reports and the accreditation of verifiers.

Accreditation and Verification Ordinance for Maritime Transport

This Regulation contains provisions on the approval and assessment of monitoring plans and the verification of emission reports and aggregated emission data at company level and sets out the procedures for the accreditation of verifiers.

Benchmark Regulation

Implementing Regulation (EU) 2021/447 of 12/03/2021 establishing adjusted benchmarks for the free allocation of emission allowances for the period 2021 to 2025.

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Burden Sharing

The so-called Burden Sharing is a Europe-wide agreement made by the then 15 Member States (EU-15) in 1998. It defines how the collective pledge to reduce emissions made in the Kyoto Protocol is split into individual reduction targets for the respective Member States. Germany committed itself to a 21 percent reduction in its greenhouse gas emissions. The Burden-Sharing-commitment applied to the 2008 to 2012 emissions.

Carbon Leakage Decision

The European Commission’s decision establishing a new carbon leakage list is the basis for the calculation of the free allocation.

Effort Sharing

In addition to Burden Sharing, the so-called Effort Sharing Decision specifies further reduction targets for the EU Member States by 2020. Germany committed itself to an additional reduction of 14 percent (based on 2005 to 2020 emissions).

EHRL - EU Emissions Trading Directive

The EU Emissions Trading Directive is the basis of the combined emission trading system among EU Member States, the so-called EU ETS 1 and gives detailed specifications for this system.

Climate Act

This regulation sets the binding target of achieving climate neutrality in the Union by 2050 and establishes the binding Union target for the reduction of net greenhouse gas emissions for 2030.

Linking Directive

The Linking Directive "links" (as the name implies) the internationally agreed pledges made in the Kyoto Protocol regarding project-based mechanisms to the EU ETS 1. Thus, not only the signatory states of the Kyoto Protocol, but also companies, can offset credits from these projects in emissions trading.

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Monitoring Regulation

MRV Maritime Transport Ordinance

In order to reduce greenhouse gas emissions from maritime transport in a cost-effective manner, this Regulation lays down rules for the accurate monitoring, reporting and verification of greenhouse gas emissions and other relevant information from ships arriving in, staying in or departing from a port in the territory of a Member State.

EU Registry Regulation (EU-RegVO)

The EU Registry Regulation regulates the functional and technical basis for the Union Registry.
Regulations (EU) 2019/1122 currently apply to the area of the EU ETS 1 and (EU) No. 389/2013 to the Kyoto area.

Delegated Regulation (EU) 2019/1122 of 12 March 2019 has already been amended three times by the following Delegated Regulations

  • Delegated Regulation (EU) 2019/1124 of 13/03/2019
  • Delegated Regulation (EU) 2023/1642 of 14/05/2023
  • Delegated Regulation (EU) 2023/2904 of 25 October 2023

The following version is a consolidated version of Regulation (EU) 2019/1122, including the amendments made by Regulations (EU) 2019/1124 and (EU) 2013/1642

  • Consolidated version of Delegated Regulation (EU) 2019/1122 including Regulations EU 2019/1124 and (EU) 2023/1642

At the same time, however, the part of Regulation (EU) No 389/2013 that applies to the technical implementation of the Kyoto Protocol and thus to the national Kyoto registry until the end of 2025, e.g. for person holding accounts in the national Kyoto registry, still applies. It has been amended several times by subsequent regulations:

  • Regulation (EU) No. 389/2013 of 02/05/2013
  • Delegated Regulation (EU) 2015/1844 of 13 July 2015
  • Regulation (EU) 2018/208 of 12 February 2018
  • Delegated Regulation (EU) 2019/1123 of 12/03/2019

The above-mentioned Delegated Regulation (EU) 2019/1122 repeals Regulation (EU) No 389/2013 for the area of the EU ETS 1, but amends Regulation (EU) 389/2013 again in its Article 87.

Maritime transport: Subordinate acts of the European Commission for maritime transport

Commission Implementing Decision (EU) for determining the uniform cross-sectoral correction factor

Commission Implementing Decision (EU) 2021/927 regulates the uniform cross-sectoral correction factor for the adjustment of free allocations of emission allowances for the period 2021 to 2025. It entered into force on 31/05/2021.

Auctioning Regulation

This Regulation lays down rules on the timing, administration and other aspects of the auctioning of allowances pursuant to Directive 2003/87/EC.

Commission Implementing Regulation (EU) for adjusting free allocation

Commission Implementing Regulation (EU) 2019/1842 regulates the annual reporting on activity levels and the adjustments to free allocation of emission allowances to reflect activity level changes within the 4th trading period. It entered into force on 24/11/2019.

Commission Implementing Regulation (EU) 2019/1842 for adjusting free allocation

Allocation Regulation (EU-ZuVO)

The EU Allocation Regulation of 19 December 2018 (Commission Delegated Regulation EU 2019/331) lays down EU-wide transitional provisions for the harmonisation of the free allocation of emission allowances from 2021.

Germany

BMUBGebV – Special Fees Ordinance BMU

Special Fees Ordinance of the Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection for individually attributable public services in its area of responsibility of 30/06/2021, last amended on 05/09/2023.

DEV – Data Collection Ordinance

The DEV 2020 came into force on 25/07/2009 and forms the legal basis for determining certain data relevant to emissions trading. It also applies to aircraft operators.

EHV – Emissions Trading Ordinance

The Ordinance on the Implementation of the Greenhouse Gas Emissions Trading Act in the Trading Period 2021 to 2030 (Emissions Trading Ordinance 2030 - EHV 2030) specifies the provisions of the Greenhouse Gas Emissions Trading Act (TEHG) for the trading period 2021 to 2030. Among other things, it contains additional data requirements for applying for free allowances and the legal basis for exempting small emitters. It also continues existing regulations from the 3rd trading period.

Emissions Trading Ordinance (EHV 2030)

TEHG – German Greenhouse Gas Emission Allowance Trading Act

The German Greenhouse Gas Emission Allowance Trading Act (TEHG) implements the EU Directive on the European Emissions Trading Scheme at a national level.

EU Maritime Emissions (MRV)

MRV Maritime Transport Ordinance

In order to reduce greenhouse gas emissions from maritime transport in a cost-effective manner, this regulation lays down rules for the accurate monitoring, reporting and verification of greenhouse gas emissions and other relevant information from ships arriving in, staying in or departing from a port in the territory of a Member State.

National Emissions Trading (nEHS)

Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz – BEHG)

From 2021, the Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz – BEHG) will introduce national trading of certificates for emissions from fuels. It supplements the European Emissions Trading System (EU ETS 1).

Energy Tax Law

The energy tax is used to charge taxes on the use of fuels and heating materials within Germany. The consumption tax is levied uniformly and indirectly nationwide on fossil and renewable energies.

To the topic (available in German only)

Fuel Emissions Trading Ordinance (BEHV)

The Fuel Emissions Trading Ordinance (BEHV) regulates the sale of certificates in national emissions trading and the nEHS-Registry.

To the topic (available in German only)

Emissions Reporting Ordinance 2022 (EBeV 2022)

The emissions reporting ordinance 2022 regulates emissions reporting in national emissions trading exclusively for the period 2021 and 2022.

To the topic (available in German only)

Emissions Reporting Ordinance 2030 (EBeV 2030)

The Emissions Reporting Ordinance 2030 regulates emissions reporting in national emissions trading for the years 2023 to 2030.

EBeV 2030 in the German Federal Gazette

BEHG Carbon Leakage Ordinance (BECV)

The BECV is the ordinance on measures to prevent carbon leakage through national fuel emissions trading based on Section 11 (3) of the BEHG.

To the topic (available in German only)

Approval text of the European Commission for the BECV

State Aid SA.63191 (2023/N) – Germany: Carbon leakage compensation in the context of the German fuel emission trading system

BEHG Hardship Compensation

Announcement of the directive on the granting of equity payments for financial compensation to companies to avoid undue hardship caused by the introduction of national fuel emissions trading pursuant to the Fuel Emissions Trading Act "BEHG-Härtefallkompensation" (BEHG hardship compensation).

General ruling on "BEHG hardship compensation"

Announcement of the general ruling on the "BEHG hardship compensation" directive.

Electricity Price Compensation (SPK)

Legal Basis

Europe-wide

Europe-wide

It follows from Article 10a(6) of the Emissions Trading Directive 2003/87/EC that Member States should introduce state aid for indirect CO2 costs.

The future funding guideline will be based on the European Commission's Guidelines for certain State aid measures in connection with the greenhouse gas emission allowance trading system after 2021 (OJ EU, 25/09/2020, C 317/5).

The Guidelines set maximum aid ceilings. In a separate communication, the Commission has completed and supplemented the value for the fallback electricity consumption efficiency benchmark, to Annex II of the Guidelines with product-specific electricity consumption efficiency benchmarks and the description of the sector covered by NACE code 20.16.40.15 ('Polyethylene glycols and other polyether alcohols, in primary forms').

28/12/2023

National

The SPK state aid guideline for the 2023 to 2030 accounting years was published in the Federal Gazette on 26/03/2024 and came into force on 27/03/2024 in accordance with point 7 of the state aid guideline. (The text is available in German only.)

27/03/2024

Carbon Border Adjustment Mechanism (CBAM)

CBAM Ordinance

The EU CBAM Regulation (2023/956) came into force in May 2023. After a two-year transition phase, starting on 1 October 2023, the regular phase will follow from 01/01/2026. The CBAM will be gradually expanded from 2026 to 2034.

Project Mechanisms

UERV – Upstream Emission Reduction Ordinance

The Upstream Emission Reduction Ordinance (UERV) sets out the legal framework for companies that market liquid fuels in Germany and are subject to a greenhouse gas reduction quota, to allow them to meet a part of their quota using upstream emission reductions (UER) from 2020 onwards. The UERV entered into force on 30/01/2018.

UERV (available in German only)

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