Climate Action Programme 2030

The Programme includes a new CO2 pricing regime aimed at emissions caused by the building sector and by traffic and transport.

By Jörn Kassow

On 20 September 2019, the German government adopted the Climate Action Programme 2030, a plan to ensure that Germany achieves its climate protection goals for 2030, including a reduction of greenhouse gas emissions by 55% (compared to 1990). The Programme comprises a number of measures for all relevant sectors. Significant measures include:

CO2 pricing: New pricing of CO2 emissions caused by the building sector and by traffic and transport may be the single most important aspect of the Programme. The relevant national emissions trading system will be launched in 2021. Companies selling heating fuel (such as heating oil, gas, or coal) and fuel for vehicles will need to buy one certificate for every tonne of CO2 emitted by the products they sell. While fuel traders will initially bear the costs of these certificates, such costs are likely to be passed on to consumers. The trading system will start with a fixed price of €10 per tonne of CO2 in 2021 and increase to €35 per tonne of CO2 in 2025. After 2025, the market will set the price, within a fixed band. The total quantity of certificates issued throughout Germany shall be in line with the German and European climate targets.