CO2 emissions in 1627 energy and industrial installations subject to emissions trading in Germany were slightly higher in 2012 than in the previous year and amounted to 452.4 million tonnes of carbon dioxide. 2011 emissions were 450.3 million tonnes. It is striking to see a different development in coal and natural gas processing. While carbon dioxide emissions increased in the energy sector from the combustion of brown coal (up 4 percent) and bituminous coal (up 4 percent), emissions from natural gas decreased significantly by 8 percent. Since natural gas is less damaging to the climate than coal, a greater use of gas-fired power plants bears a large CO2 saving potential. Emissions from energy-intensive industrial installations decreased by about 3 percent.
Overall, CO2 emissions of 452.4 million tonnes are again at the same level as Germany's annual emissions cap in the second trading period which is 451.8 million tonnes. "The 2012 emission figures bring good news and bad news: the German cap has nearly been met – thanks to the drop in energy-intensive industrial installations – but greater saving potentials have remained untapped until now. This shows that emissions trading is capable of achieving more, however its effect needs to be strengthened accordingly. Incentives to use climate-friendly power plants and invest in new technologies can only be created in this way", says Jochen Flasbarth, President of the Federal Environment Agency.
"The current competitive disadvantage of highly efficient gas-fired power plants over cheaper coal-based power generation is clearly reflected in the 2012 CO2 emissions. While on the journey to the ambitious greenhouse gas reduction targets of 2050, we are very dependent on the efficient gas-fired plants. Their displacement as a result of current market conditions would be disastrous and would considerably increase the cost of the required CO2 reductions over the medium term", says Flasbarth.
The European Commission in the autumn of 2012 proposed to withdraw 900 million allowances from the market in order to strengthen emissions trading as a climate protection instrument. The Environment Committee of the European Parliament approved the Commission's proposal on 19 February 2013. Ultimately, the EU Council and Parliament must decide.
Operators have time by 30/04/2013 to surrender the necessary number of allowances to offset their actual emissions. DEHSt is currently reviewing the 2012 emission reports and is expected to publish the detailed assessment and breakdown of the results on 15/05/2013.
The German Emissions Trading Authority (DEHSt)
The German Emissions Trading Authority at the Federal Environment Agency is the national authority for the implementation of the European emissions trading system for both stationary installations and aviation. Its responsibilities include the issuance and allocation of allowances, reviewing emission reports, monitoring installations and the management of accounts in the EU Emissions Trading Registry. It controls the auctions and informs the public and market participants of the auction results. It is also responsible for managing the project-based Joint Implementation and Clean Development mechanisms.