German Emissions Trading Authority (DEHSt): reports, research and international activities (02)
Dear Readers,
2022 has been a key year for climate and energy policy in the EU. Against the backdrop of Russia's invasion of Ukraine and skyrocketing fuel prices, especially for natural gas, European legislators further discussed the "Fit for 55" package, with fundamental agreements concluded in December of last year. A formal endorsement is expected for April this year.
Indeed, the agreement reached on the reform of the European Emissions Trading Scheme (EU ETS) as a leading instrument in climate protection is a milestone on Europe's path towards becoming the first climate-neutral continent by 2050. The ambition increases through the existing EU ETS as well as the introduction of a complementary emissions trading system for sectors not yet covered (ETS 2). This will contribute significantly to the EU-wide reduction of greenhouse gas emissions by 55 percent up to 2030. In the same breath, the special consideration of social concerns will become all the more important in the coming years, as it must be ensured that no social hardship arises with increasingly demanding climate policies. A recently published UBA position paper shows how this is possible using the example of the German emissions trading system for buildings and road transport.
Furthermore, and most relevant from an international perspective, the EU Carbon Border Adjustment Mechanism (CBAM), i.e. a carbon tariff on carbon-intensive products, such as cement, iron and steel, imported into the EU, has been agreed and will take effect in 2026 with reporting starting in October 2023.
2023 will thus be marked by the work-in-progress preparation and implementation of these ambitious climate and energy reforms.
I wish you a pleasant reading!
Yours faithfully,
Dr Jürgen Landgrebe
Head of the German Emissions Trading Authority at the German Environment Agency