In 2023, the approximately 1,730 stationary installations in Germany in the European Emissions Trading System 1 (EU ETS 1) emitted around 289 million tonnes of carbon dioxide equivalents according to preliminary figures from the German Emissions Trading Authority (DEHSt) at the German Environment Agency (UBA). This roughly corresponds to a reduction of 18 percent compared to emissions in 2022.
The emissions trend in the EU ETS 1 in 2023 is characterised in particular by a significant decline in energy demand from industry and private households, the growing share of renewable energies and the associated decline in fossil energy generation. The weak economic trend was a key driver of this development. However, there was also an increased switch from coal to natural gas in electricity generation last year, which was favoured by falling prices on the natural gas markets.
Although emissions fell significantly in both the energy and industry sectors compared to the previous year, the rate of decline varied: emissions from German energy plants fell by around 22 percent, twice as fast as emissions from industrial plants in Germany. Here, the decline was around 10 percent.
Total German greenhouse gas emissions also fell significantly. UBA's current estimate from 15/03/2024 shows a 10 percent reduction in total emissions from all sectors. According to UBA, this development describes the sharpest decline in greenhouse gas emissions in Germany since 1990. The decline in the EU ETS 1 has thus been significantly disproportionate compared to the overall German figures.
At European level, there was also a significant decline in emissions in the EU ETS 1 compared to the previous year. Based on its provisional data as of 02/04/2024, the European Commission indicates a 15.5 percent reduction in emissions. On the basis of these preliminary data and independent market analysis, a reduction in emissions of around 16 to 18 percent across the EU ETS 1 as a whole can be expected.
Development of emissions in the sectors covered by the EU ETS 1 in Germany in detail:
Emissions from industry
Emissions from energy-intensive industry in Germany fell by 10 percent year-on-year to 101 million tonnes of CO2 equivalents - the lowest level since 2013, when the current scope was introduced at the start of the third trading period. Almost all sectors saw relatively significant declines in emissions. The largest drop in emissions was in the non-ferrous metals sector, at minus 19 percent, followed by the other mineral processing industry, at minus 18 percent. Emissions from the chemical industry, refineries, industrial and building lime production, cement clinker production and the paper and pulp industry fell by between 9 and 17 percent. Emissions from the iron and steel industry, on the other hand, remained relatively stable at minus 2 percent.
Emissions from energy supply
Emissions from energy supply fell by 22 percent to 188 million tonnes of CO2 equivalents, the lowest level since the introduction of the EU ETS 1 in 2005.
Emissions from aviation: Emissions from aircraft operators managed by Germany amounted to around 7.6 million tonnes of carbon dioxide in 2023. This corresponds to an increase of around 4.5 percent compared to the previous year.
Obligation to surrender
Until 30/09/2024, plant and aircraft operators have time to surrender the emission allowances required to offset their actual emissions for 2023.
Emissions trading and total emissions
The share of European Emissions Trading in the German greenhouse gas emissions recorded by UBA for 2023 is approximately 46 percent. A preliminary estimate of total German emissions in 2023 was published by UBA on 15/03/2024. The final emissions within the EU ETS 1 will be published by the DEHSt in July as part of an evaluation report. In the autumn of this year, DEHSt will also publish the provisional emissions in the National Emissions Trading Scheme (nEHS) for the reporting year 2023. The nEHS covers fuel emissions outside the EU ETS 1.