Jan 9, 2026
Germany's emissions trading earnings reached a record 21.4 billion euros.
Germany generated a record 21.4 billion euros from the sale of CO2 emissions allowances for its national and EU trading system (EU ETS) last year, marking a 16 percent increase or 2.9 billion euros compared to 2024.
While revenue from the EU ETS remained steady at 5.4 billion euros, income from the national system, which covers transport and heating, surged by approximately 3 billion euros to reach 16 billion euros, according to the country's environment agency UBA, home to Germany's Emissions Trading Authority (DEHSt).
The increase in revenue from national allowances is attributed not only to higher prices but also to elevated emissions in the housing and transport sectors, as reported by UBA. Germany's total emissions experienced only a slight decline in 2025 due to rising pollution in those areas, according to think tank Agora Energiewende. The pressure for action on climate issues in transport and heating is "enormous," stated UBA. The government is expected to unveil its strategy for achieving emission reduction goals in the upcoming Climate Action Programme, which is anticipated by March.
Germany allocates the proceeds to its Climate and Transformation Fund (KTF) to support climate initiatives and energy transition policies, including energy-efficient building upgrades, public charging stations for electric vehicles, and industrial decarbonization. Since the commencement of emissions allowance sales in 2008, total proceeds have exceeded 100 billion euros.
“Emissions trading has become the primary cross-sectoral climate action instrument,” remarked UBA head Dirk Messner. “Carbon pricing offers significant momentum for the climate-friendly transformation of our society.”
The concept of emissions trading aims to assign a cost to CO2 emissions to make pollution more expensive, thereby promoting the adoption of environmentally-friendly alternatives to fossil fuels. Major polluters, such as power plants and industrial facilities, must purchase EU emissions certificates, which averaged nearly 74 euros last year, an increase of nine euros compared to 2024. The number of allowances auctioned is gradually reduced each year to lower emissions over time.
In contrast, Germany's national CO2 price applies to heating and transport emissions without a cap on the number of allowances. Last year, prices were set at 55 euros, while this year, allowances will be auctioned at a price ranging from 55 to 65 euros per tonne. Germany's national emissions trading system is expected to transition to a broader EU-wide system for transport and buildings (EU-ETS 2) starting in 2028.
While revenue from the EU ETS remained steady at 5.4 billion euros, income from the national system, which covers transport and heating, surged by approximately 3 billion euros to reach 16 billion euros, according to the country's environment agency UBA, home to Germany's Emissions Trading Authority (DEHSt).
The increase in revenue from national allowances is attributed not only to higher prices but also to elevated emissions in the housing and transport sectors, as reported by UBA. Germany's total emissions experienced only a slight decline in 2025 due to rising pollution in those areas, according to think tank Agora Energiewende. The pressure for action on climate issues in transport and heating is "enormous," stated UBA. The government is expected to unveil its strategy for achieving emission reduction goals in the upcoming Climate Action Programme, which is anticipated by March.
Germany allocates the proceeds to its Climate and Transformation Fund (KTF) to support climate initiatives and energy transition policies, including energy-efficient building upgrades, public charging stations for electric vehicles, and industrial decarbonization. Since the commencement of emissions allowance sales in 2008, total proceeds have exceeded 100 billion euros.
“Emissions trading has become the primary cross-sectoral climate action instrument,” remarked UBA head Dirk Messner. “Carbon pricing offers significant momentum for the climate-friendly transformation of our society.”
The concept of emissions trading aims to assign a cost to CO2 emissions to make pollution more expensive, thereby promoting the adoption of environmentally-friendly alternatives to fossil fuels. Major polluters, such as power plants and industrial facilities, must purchase EU emissions certificates, which averaged nearly 74 euros last year, an increase of nine euros compared to 2024. The number of allowances auctioned is gradually reduced each year to lower emissions over time.
In contrast, Germany's national CO2 price applies to heating and transport emissions without a cap on the number of allowances. Last year, prices were set at 55 euros, while this year, allowances will be auctioned at a price ranging from 55 to 65 euros per tonne. Germany's national emissions trading system is expected to transition to a broader EU-wide system for transport and buildings (EU-ETS 2) starting in 2028.