Public Hearing on the Amendment of the Emissions Trading Act
Berlin, January 15, 2025
The German Bundestag’s Environment Committee held a public hearing on Friday to discuss the amendment of the Emissions Trading Act (Emmissionshandelsgesetz, EHGes). The amendment aims to align the law with the EU’s Emissions Trading Directive, which was revised in 2023.
Key Points of the Amendment
The proposed amendment includes several key changes, such as:
- Expanding the scope of the ETS: The ETS will be extended to cover emissions from ships and buildings.
- Introducing a carbon price floor: The government will set a minimum price for carbon allowances, ensuring a sufficient incentive for emissions reductions.
- Strengthening the market stability reserve: The reserve will be enlarged to absorb surplus allowances and stabilize the carbon market.
- Enhancing transparency and accountability: The amendment introduces new reporting and monitoring requirements to improve market oversight.
Stakeholder Perspectives
Representatives from industry, environmental organizations, and academia expressed their views on the proposed changes.
Industry representatives highlighted the need for a predictable and stable carbon market. They called for the avoidance of excessive costs and the consideration of international competition.
Environmental organizations emphasized the importance of a robust carbon price to drive emissions reductions. They also urged the government to ensure the integrity of the ETS and prevent loopholes.
Academics emphasized the need for a science-based approach to emissions trading. They called for the use of credible data and modeling to inform policy decisions.
Next Steps
The Environment Committee will deliberate on the input received during the hearing. The amended Emissions Trading Act is expected to be submitted to the Bundestag for final approval in the coming months.
Significance
The amendment of the Emissions Trading Act is a crucial step in Germany’s efforts to achieve its climate goals. By expanding the scope of the ETS, introducing a carbon price floor, and strengthening the market stability reserve, the government aims to create a more comprehensive and effective emissions trading system.
The amendment aligns with the EU’s goal of creating a single, liquid carbon market that supports the transition to a climate-neutral economy.
Anhörung zur Anpassung des Emissionshandelsgesetzes
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