The German Emissions Trading Authority (DEHSt) at the German Environment Agency (UBA) is the competent national authority for implementing the European Emissions Trading Scheme (EU ETS) and the National Emissions Trading Scheme (nEHS). We cooperate closely with our clients to make emissions trading an ecological and economic success. We are also the point of contact for international climate protection projects and voluntary carbon market issues. We are a part of Division V – Climate Protection, Energy, German Emissions Trading Authority of the German Environment Agency.

The European Emissions Trading System (EU ETS) is the central climate policy guiding instrument in Europe aimed at reducing greenhouse gas emissions from energy and industrial installations and inter-European aviation in a cost-effective manner. This is necessary because the rising carbon dioxide (CO2) concentration in the atmosphere is a major contributor to climate change. In addition to CO2, other gases such as nitrous oxide (N2O) or methane (CH4) also damage the climate. The European Emissions Trading System covers about 40 percent of the European Union (EU)’s total greenhouse gas emissions.

Emissions Trading – Economics and Climate Protection

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In 2021 Germany introduced another climate protection tool, the National Emissions Trading scheme aimed at reducing CO2 emissions, especially in the heating and transport sectors. These emissions are mainly responsible for the rapid climate change. The principle is simple: one nEHS certificate must be surrendered for every tonne of CO2 resulting from fuel combustion. This page provides detailed information about the functioning, importance and various other aspects of national emissions trading.

National Emissions Trading

Our explanatory film shows how national emissions trading works and illustrates its positive impact on climate protection.

Indirect CO2 costs arise because electricity producers pass on the costs linked to emission allowances to their customers via electricity pricing. State aid for offsetting indirect CO2 costs associated with emissions trading (electricity price compensation) is designed to provide partial compensation for those companies operating in certain sectors. The aim is to safeguard the international competitiveness of these companies.
The potential shifting of production to states outside the EU Emissions Trading Scheme and thus the relocation of CO2 emissions (carbon leakage) should thus be prevented.

Climate change is one of the 21st century’s greatest challenges. We can only meet this by employing a number of various instruments – voluntary offsetting may be one of them. Financing climate protection projects to offset the emission of carbon dioxide (CO2) or other greenhouse gases is an innovative climate protection method. Here we explain how voluntary offsetting can provide real added value for climate protection.

Both climate crisis and loss of biodiversity threaten life on Earth. Both crises are closely linked and mutually reinforcing. ‘Natural climate protection’ considers both crises together and links climate protection to the protection of natural ecosystems. We provide an overview of natural climate protection and references to further information offered by the German Environment Agency. We focus on the challenges and options of certifying climate protection successes achieved in natural climate protection projects.