Due to the complexity of the topics covered, it is not possible to present all details in full. Therefore, no guarantee can be given for the accuracy and completeness of the information provided. However, we place great importance on ensuring that the content is technically correct and up to date.
At the end of this page, you will find references to the relevant legal bases.
Just before the World Climate Summit, the European Union's environment ministers agreed on new climate targets for 2040. As a result, the launch of the CO2 certificate trading of ETS 2 is intended to be postponed from 1st January 2027 to 1st January 2028, according to the ministers of the member states.
However, regulated companies must still comply with reporting obligations, which already started in 2024, and the associated introduction of the necessary processes to meet the EU-ETS 2 framework requirements. The first audit of these reporting obligations by independent auditors is scheduled for 2026. With the postponement of ETS 2 in Europe, national emissions trading in Germany will be extended for another year, which in turn increases the complexity and effort involved on this side. Even though the ministers of the European Union have agreed on this approach, it still needs to be officially confirmed. It’s worth noting that this is not something that can be done by just amending the EU Climate Law, as it requires opening up the EU-ETS directive and the support from the European Parliament.
SEFE’s Perspective on ETS 2: Commitment beyond compliance
SEFE views the ETS 2 directive not just as a regulatory requirement, but as an opportunity to lead in energy strategy and system integration.
ETS 2: what’s changing and what’s not: key regulatory updates
While the start of certificate trading under ETS 2 may be postponed, core obligations remain unchanged.
nETS and ETS 2: implications for SEFE Germany and customers
The overlap between ETS 2 and national schemes increases complexity – SEFE is here to guide you through it.
What you need to do: customer responsibilities under ETS 2
Compliance starts with accurate reporting here’s what’s required from your side.
Looking ahead
SEFE remains fully committed to supporting clients through the evolving ETS 2 and national emissions trading frameworks. While regulatory timelines may shift, your obligations remain – and so does our dedication to helping you meet them with confidence. We will continue to provide updates, guidance, and tailored solutions to ensure your energy strategy remains compliant, resilient, and future-ready.
The European Emissions Trading System requires polluters to pay for their greenhouse gas emissions. Launched in 2005, it is the world's first CO2 market and remains one of the largest to date. The principle is simple: for every tonne of CO2 emitted, a certificate is required. These certificates are limited in number and can be traded – creating a price on emissions that makes clean technologies more economically attractive.
The EU-ETS reduces the EU’s total emissions while generating revenues that help finance the green transition. It covers emissions from electricity and heat generation, industrial production, and aviation – together accounting for around 40% of the EU’s total greenhouse gas emissions. Since 2024, maritime transport has also been included.
The system applies in all EU member states as well as in Iceland, Liechtenstein, and Norway. In addition, since 2020 it has been linked with the Swiss emissions trading system, creating a larger and more efficient market.
The EU-ETS sets a clear price on pollution, directs investments toward climate-friendly solutions, and provides the political framework to reduce emissions in a predictable and measurable way.
In the future, the national emissions trading system (nEHS), which is based on the Fuel Emissions Trading Act (BEHG), is to be integrated into the new emissions trading system of the European Union (EU-ETS 2). This system has been specifically created for the buildings and road transport sectors.
The EU-ETS 2 will start with the reporting year 2024, which will be reported on in 2025. It essentially covers the same fuels as the nEHS but is limited to certain sectors (see below). Responsibility – as in the nEHS – remains with the energy tax debtor.
The Fuel Emissions Trading Act (BEHG) came into force on December 20, 2019, as part of the Climate Protection Package presented by the German Federal Government in September 2019. This legally enshrined Germany’s ambitious climate protection targets.
The BEHG currently forms the basis for the national emissions trading system (nEHS) for fossil fuels. Since January 1, 2021, fuel distributors have been required to purchase CO2 certificates. The nEHS in Germany will be replaced by the EU-ETS 2 as soon as it comes into force.
EU-ETS 1
The European Emissions Trading System (EU-ETS 1) was introduced in 2005 to implement the Kyoto international climate agreement and is the central European climate protection instrument.
EU-ETS 1 covers emissions from around 9,000 installations across Europe in the energy sector and energy-intensive industries, which together account for about 40% of greenhouse gas emissions in Europe.
The EU-ETS 1 operates under the “Cap & Trade” principle.
A cap sets the total amount of greenhouse gas emissions allowed from the installations subject to emissions trading. The Member States allocate a corresponding number of emission allowances to these installations – partly for free and partly through auctions. One allowance permits the emission of one tonne of CO₂ equivalent (CO₂-eq).
These allowances can be freely traded on the market (Trade), establishing a market price for greenhouse gas emissions. This price creates incentives for companies to reduce their emissions.
EU-ETS 2
In addition to EU-ETS 1, a separate emissions trading system (EU-ETS 2) is to be established for the use of fossil fuels in the buildings and road transport sectors, as well as in additional sectors.
Similar to the nEHS, EU-ETS 2 is designed as an upstream system. This means that it is not the users of fossil fuels (e.g. for cars or heating) who are obliged to participate in EU ETS 2, but the companies (e.g. gas traders). These companies pass on the price signals to users
Unlike the nEHS, the EU-ETS 2 does not include fixed prices or a price corridor. Market imbalances between supply and demand are to be stabilized through a Market Stability Reserve (MSR).
The Fuel Emissions Trading Act (BEHG) came into force on December 20, 2019, as part of the Climate Action Package presented by the German Federal Government in September 2019. This Act legally enshrined the ambitious climate protection targets to which Germany has committed itself.
The BEHG forms the legal basis for the national emissions trading system (nEHS). It applies to sectors that are not yet covered by the existing European Emissions Trading System (EU-ETS). The EU-ETS currently includes only large power generation plants, energy-intensive industries, and intra-European aviation.
At the national level, all fuels and heating materials placed on the market — such as gasoline, diesel, heating oil, natural gas, liquefied gas, or biomass — are subject to a price for their CO₂ emissions.
The German Emissions Trading Authority (DEHSt), part of the Federal Environment Agency (UBA), is responsible for implementing and administering the national emissions trading system.
The Fuel Emissions Trading Act (BEHG) came into force in December 2019.
Since January 1, 2021, the BEHG and its associated regulations have formed the legal framework for national trading in CO2 emission certificates from fuels.
From this date, fuel distributors are required to purchase CO2 certificates to cover the emissions caused by their products.
Whenever climate-damaging emissions are generated, the corresponding fuels are included in the national emissions trading system. These include, among others, gasoline, diesel, heating oil, liquefied gas, and natural gas. Since 2023, coal has also been covered by the system.
Biomass is likewise affected if it does not meet current sustainability criteria. In 2024, waste used as fuel was also included in the system.
Key legal foundations for the National Emissions Trading System (nEHS):
Fuel Emissions Trading Act (BEHG):
Serves as the central legal basis for pricing CO₂ emissions through the trading of emission certificates.
Emission Reporting Ordinance 2030 (EBeV 2030):
Regulates the reporting of emissions, including the prevention of double counting and the adjustment of calculation values.
Fuel Emissions Trading Ordinance (BEHV):
Contains provisions on the sale of emission certificates and rules for subsequent purchases.
BEHG Carbon Leakage Ordinance (BECV):
Protects energy-intensive companies from competitive disadvantages by providing compensation measures to prevent carbon leakage.
The legal basis for the pricing of emission certificates is the Fuel Emissions Trading Act (BEHG) of 2019, in its current version dated March 6, 2025.
For the year 2025, a fixed price of 55 euros per tonne of CO2 per emission certificate applies.
Main differences between the EU-ETS 1 and the nEHS:
Point of reference:
EU-ETS 1: Emissions are recorded directly at plant operators or aircraft operators.
These operators are required to acquire emission allowances for their own CO2 emissions.
This is referred to as a downstream emissions trading system. EU-ETS 1 exists in parallel with the nEHS.
nEHS: Distributors of fossil fuels (e.g. gas or coal suppliers) are required to purchase certificates to cover the emissions that occur at the point of end use.
This represents an upstream emissions trading system. The NEHS supplements the EU-ETS 1 and exists in parallel to the ETS.
Scope of application:
EU-ETS 1: Covers primarily large emitters in the industrial, power generation, and aviation sectors.
NEHS and ETS 2: Applies to emissions from the use of fossil fuels in the transport and buildings sectors and smaller industries.
In addition, some companies are affected by both emissions trading systems due to the nature of their business activities. However, companies are protected from double taxation by both systems by means of an EU requirement.
Several EU Member States have already introduced their own CO2 pricing mechanisms to meet their national climate targets.
However, Germany and Austria are currently the only Member States that have established an independent national emissions trading system through the Fuel Emissions Trading Act (BEHG) in Germany and the National Emissions Trading Act 2022 (NEHG) in Austria.
In principle, all natural and legal persons who are liable for energy tax are obligated to participate in the national emissions trading system (nEHS).
This includes, in particular, fuel wholesalers, manufacturers with their own wholesale operations that place fuels on the market, and companies importing fuels into Germany, which are considered importers under the Energy Tax Act (EnergieStG).
The emissions report under the nEHS in Germany must be submitted by 31 July of the following year.
It is based on the monitoring plan previously approved by the BEHG-responsible entity.
The report includes information on the fuels placed on the market and may – if required – be verified by an accredited independent verification body.
The purchase and surrender of nEHS certificates takes place either directly via the European Energy Exchange (EEX) or through an appointed intermediary.
The acquired certificates are then transferred to the company’s compliance account.
Additionally, certificates may be purchased on the secondary market through trading between obligated participants.
For each tonne of CO₂ emitted, a corresponding nEHS certificate must be surrendered.
The BEHG-responsible party is obliged to transfer the required certificates from its compliance account in the national emissions trading registry (nEHS Register) to the national surrender account by 30 September of the following year at the latest.
Violations of these obligations constitute administrative offences under Section 22 of the BEHG and may be punished with fines of up to EUR 500,000.
Under the Fuel Emissions Trading Act (BEHG), a fuel distributor is defined as the supplier who delivers fuels to an end customer who withdraws them from the pipeline network—that is, at the point where energy tax liability arises.
The responsibility therefore derives from the Energy Tax Act (EnergieStG), even though CO₂ pricing itself is not a tax, but a market-based certificate trading system.
Thus, all companies holding an energy tax supplier certificate are considered fuel distributors under the BEHG.
Customers can generally be divided into two groups:
Obligations toward the German Emissions Trading Authority (DEHSt)
The fuel distributor has both one-time and recurring obligations toward the German Emissions Trading Authority (DEHSt):
One-time obligations:
Recurring obligations:
Purchase of certificates and supplementary purchase rule
The fuel distributor must cover at least 90% of their certificate requirement within a calendar year.
For the remaining 10%, the supplementary purchase rule applies (Section 10 (2), sentence 3 BEHG).
This rule allows the purchase of up to 10% of the required certificates by 30 September of the following year, at the fixed price of the previous year.
The calculation basis, according to Section 6 (2) BEHV, is the number of certificates held in the compliance account at the end of the year.
Monitoring plan and reporting obligations
The monitoring plan serves as the basis for the annual emissions report and specifies the methods used to record and calculate emissions.
It must be complete, transparent, and traceable, and must be submitted at the start of the reporting obligation as well as whenever changes occur.
Afterwards, the plan may be updated or adjusted as needed.
From 2021 to 2025, CO₂ certificates are issued at fixed prices.
For 2026, a price corridor is planned, which will then be phased out.
Starting in 2027, certificate prices will be determined freely by the market.
The fixed price per nEHS certificate (nEZ) – and thus per tonne of CO₂ – amounts to:
2021: €25
2022: €30
2023: €30
2024: €45
2025: €55
2026: €55-65 (price corridor)
The Fuel Emissions Trading Act (BEHG) and the national emissions trading system (nEHS) based on it apply in Germany to those sectors that have so far not been covered by the European Emissions Trading System (EU-ETS).
With the introduction of EU-ETS 2, this regulatory gap is to be closed at the European level, further harmonizing emissions trading within the EU.
The EU-ETS is currently in its fourth trading period (2021–2030).
As part of the European “Fit for 55” package, the target was set to reduce net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.
This also includes the extension of emissions trading to the buildings and transport sectors.
With the reform of the EU Emissions Trading System (EU-ETS) now in force, around 85 percent of all European CO2 emissions will in future be covered by certificates or emission allowances.
Key Elements of the EU-ETS Reform for Industry and Energy
The national emissions trading system (nEHS), which is based on the Fuel Emissions Trading Act (BEHG), is to be integrated into the new EU Emissions Trading System 2 (EU-ETS 2) in the future.
The EU-ETS 2 is a separate system established by the European Union, designed specifically for the buildings, road transport, and certain fuel-related industrial sectors.
This means that the previously national fuel emissions trading system will henceforth be regulated at the European level.
The national implementation of the EU-ETS 2 will take place through the Greenhouse Gas Emissions Trading Act (TEHG).
The reporting framework is presently being developed by the German Emissions Trading Authority (DEHSt) within the Federal Environment Agency (UBA).
As there is currently no practical experience regarding certain aspects – particularly price formation mechanisms in the buildings and road transport sectors – the specific impacts of EU-ETS 2 can only be estimated to a limited extent at this time.
Furthermore, transitional provisions are planned, which will entail adjustments and possible extensions of reporting obligations.
The EU-ETS 2 primarily covers the buildings and road transport sectors.
This includes both private and commercial buildings, as well as private and commercial vehicles.
In addition, – with certain exceptions – parts of the energy sector, the manufacturing industry, and the construction sector will also be included in the system, as are smaller industrial companies that are not covered by the EU-ETS 1.
According to the Greenhouse Gas Emissions Trading Act (TEHG), all natural and legal persons, as well as partnerships that are liable for energy tax, are obliged to participate in the EU-ETS 2.
This particularly applies to fuel wholesalers and manufacturers that place fuels on the market, as well as to companies importing fuels into Germany, which are therefore regarded as importers under energy tax law.
If fuels are stored by third parties in a warehouse, the person storing the fuels is considered the responsible party, not the warehouse owner.
As a result, most of the entities already obligated under the BEHG will also be required to participate in the EU-ETS 2 in the future.
Under the EU-ETS 2, fuel distributors (energy tax debtors) are obliged to purchase emission certificates to cover the CO2 emissions they cause.
They must continuously monitor their emissions, report them annually, and apply for an emissions permit based on an approved monitoring plan.
In addition, from the start of EU-ETS 2, companies are required to maintain an account in the Union Registry through which the allowances are managed. Companies are also encouraged to develop measures and strategies to reduce emissions.
Thus, fuel distributors bear the direct responsibility within the framework of the EU-ETS 2, while consuming companies are primarily indirectly affected through higher fuel prices, thereby contributing to climate protection.
All entities affected by EU-ETS 2 — including both distributors of fossil fuels and companies and households that use fossil energy sources for heating, cooling, or transport — must prepare for a variety of measures and obligations.
These are intended to ensure compliance with the EU-ETS 2 requirements while also contributing to the reduction of greenhouse gas emissions.
Emission reduction
Cost management
Regular adjustments
Additional obligations for fuel distributors (energy tax debtors)
In addition to the general requirements, fuel distributors are subject to specific legal obligations:
Official information:
In addition, since January 2021, the German Emissions Trading Authority (DEHSt) has been continuously publishing guidelines and informational materials on various topics related to the national emissions trading system (nEHS).
Further links on the topics:
Fuel Emissions Trading Act (BEHG)
Fuel Emissions Trading Act of December 12, 2019 (Federal Law Gazette I p. 2728), last amended by Article 7 of the Act of December 22, 2023 (Federal Law Gazette 2023 I No. 412).
www.gesetze-im-internet.de/behg
Emission Reporting Ordinance 2030 (EBeV 2030)
Ordinance on emission reporting under the Fuel Emissions Trading Act for the years 2023 to 2030 (Emission Reporting Ordinance 2030 – EBeV 2030), last amended by Article 1 No. 5 of the Act of November 9, 2022 (Federal Law Gazette I p. 2006).
www.gesetze-im-internet.de/ebev_2030
Fuel Emissions Trading Ordinance (BEHV)
Ordinance implementing the Fuel Emissions Trading Act (Fuel Emissions Trading Ordinance – BEHV), promulgated December 17, 2020; full citation: “Fuel Emissions Trading Ordinance of December 17, 2020 (Federal Law Gazette I p. 3026), as amended by Article 1 of the Ordinance of June 21, 2023 (Federal Law Gazette 2023 I No. 163).”
www.gesetze-im-internet.de/behv
BEHG Carbon Leakage Ordinance (BECV)
Ordinance on measures to prevent carbon leakage under the national fuel emissions trading (BEHG Carbon Leakage Ordinance – BECV), promulgated July 21, 2021; full citation: “BEHG Carbon Leakage Ordinance of July 21, 2021 (Federal Law Gazette I p. 3129).”
www.gesetze-im-internet.de/becv
BEHG Double Accounting Compensation Ordinance (BEDV)
Ordinance on the compensation of double-accounted fuel emissions under the Fuel Emissions Trading Act (BEHG Double Accounting Compensation Ordinance – BEDV), of January 27, 2023, Federal Law Gazette 2023 I No. 29
www.gesetze-im-internet.de/bedv
Climate and Transformation Fund
Act establishing a special fund “Climate and Transformation Fund” (KTFG), promulgated December 8, 2010; full citation: “Climate and Transformation Fund Act of December 8, 2010 (Federal Law Gazette I p. 1807), last amended by Article 1 of the Act of July 12, 2022 (Federal Law Gazette I p. 1144).”
www.gesetze-im-internet.de/ekfg
European Climate Law
Regulation (EU) 2021/1119 of the European Parliament and of the Council of June 30, 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (“European Climate Law”),
https://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=CELEX:32021R1119&from=FR
Federal Climate Protection Act
First Act amending the Federal Climate Protection Act of August 18, 2021
www.bgbl.de/xaver/bgbl/start.xav?tartbk=Bundesanzeiger_BGBl&jumpTo=bgbl121s3905.pdf#__bgbl__%2F%2F*%5B%40attr_id%3D%27bgbl121s3905.pdf%27%5D__1686999206560
EU-ETS Reform incl. ETS 2
Directive (EU) 2023/959 of the European Parliament and of the Council of May 10, 2023 amending Directive 2003/87/EC on a system for greenhouse gas emission allowance trading within the Union and Decision (EU) 2015/1814 on the establishment and operation of a market stability reserve for the Union’s greenhouse gas emission trading system,
https://eur-lex.europa.eu/legal-content/DE/TXT/PDF/?uri=CELEX:32023L0959
Draft by the Federal Ministry for Economic Affairs and Climate Action – Draft Act to adapt the Greenhouse Gas Emissions Trading Act to the amendment of Directive 2003/87/EC (TEHG European Law Adaptation Act 2024)
www.bmwk.de/Redaktion/DE/Downloads/Gesetz/20240730-entwurf-anpassung-treibhausgas-emissionshandelsgesetz.pdf?__blob=publicationFile&v=4
www.bmwk.de/Redaktion/DE/Artikel/Service/Gesetzesvorhaben/20240730-entwurf-anpassung-treibhausgas-emissionshandelsgesetz.html
www.dehst.de/SharedDocs/Newsletter/DE/2024/2024-08-29-nehs-eu-ets-2-tehg-novelle_01.html
German Bundestag documentation, title: New EU emissions trading for buildings and road transport; subtitle: On the planned EU-ETS II and the impact on the national emissions trading system, January 2023:
www.bundestag.de/resource/blob/935752/11ab46422ea31a5a3195319d5fa05f4d/WD-8-001-23-pdf-data.pdf
EEX sales calendar for nEHS in 2024:
www.eex.com/fileadmin/EEX/Downloads/Trading/Calendar/nEHS_Sell-off_Calendar/20240111_nEHS_sales_calendar_2024_DE.pdf
DEHSt Guide to scope, monitoring and reporting of CO₂ emissions – National Emissions Trading System 2021 and 2022, as of September 2023.
www.dehst.de/SharedDocs/downloads/DE/nehs/nehs-leitfaden-monitoring-2021-2022.pdf?__blob=publicationFile&v=8
DEHSt Guide to scope, monitoring and reporting of CO₂ emissions – National Emissions Trading System 2023 to 2030, as of May 2024.
www.dehst.de/SharedDocs/downloads/DE/nehs/nehs-leitfaden-monitoring-2023-2030.pdf?__blob=publicationFile&v=4
DEHSt BEHG Guide: Updated guide “Interaction of EU-ETS and nEHS 2021 and 2022,” advance deduction of fuel quantities under Section 7 (5) BEHG and subsequent compensation under Section 11 (2) BEHG in conjunction with BEDV for stationary installations in the EU ETS, as of June 2023
www.dehst.de/SharedDocs/downloads/DE/stationaere_anlagen/2021-2030/Leitfaden-euets-nehs.pdf?__blob=publicationFile&v=10
DEHSt information paper on ETS 2:
“EU-ETS 2: Information paper on scope, monitoring and reporting of CO₂ emissions – reporting phase 2024 to 2026,” as of September 2024
DEHSt – Understanding National Emissions Trading – Understanding National Emissions Trading
Further information can be found on the DEHSt website at:
www.dehst.de/DE/Online-Services/nEHS-Datenerfassung/Carbon-Leakage-Kompensation/carbon-leakage-kompensation_node.html
www.dehst.de/DE/Themen/nEHS/EU-ETS-1-Kompensation/eu-ets-1-kompensation_node.html
These FAQs may contain forward-looking statements that are based on the current assumptions and forecasts of SEFE’s management, on laws and regulations currently in force, or on other information available at this time.
Various known and unknown risks, uncertainties, and other factors could lead to significant differences between the actual future results, financial situation, development, or performance of the company and the assessments provided here. SEFE assumes no obligation to update such forward-looking statements or to adapt them to future events or developments.