The German government agreed on a carbon pricing system for the transport and construction sectors until 2021 as part of a new climate package, among the record-breaking climate protests in the country.
The so-called „Climate Protection Programme 2030” aims to help the country achieve its national target of reducing CO2 emissions by 55% compared to 1990 levels. The country has now reached almost 30%.
Under the new emissions trading scheme, the government will issue emission rights at €10 per tonne in 2021 and prices will rise to €35 every year until 2025. From 2026 onwards, an emission cap will be introduced, which will be reduced every year.
It is intended to complement the European Emissions Trading System (ETS), which is limited to emissions from the energy and industrial sectors.