Germany achieved a landmark $19 billion (€18.5 billion) in carbon trading revenue in 2024, marking a $103 million increase from the previous year, according to the German Emissions Trading Authority (DEHSt).
An electric car driving along a country road in Germany, surrounded by a lush green forest, with modern buildings visible in the distant background. AI generated picture.
The bulk of this revenue, $13.4 billion, came from national emissions trading, reflecting a 21% surge driven by higher carbon pricing for heating and transport fuels. The price of carbon rose from $46.3 to $56.6 (€45 to €55) per tonne at the start of the year, impacting petrol, diesel, heating oil, and natural gas.
Proceeds are allocated to Germany’s Climate and Transformation Fund, which finances green initiatives such as building refurbishments, electric vehicle infrastructure, and industrial decarbonisation efforts.
Meanwhile, the European emissions trading segment contributed $5.7 billion, a 28% decline from 2023. The decrease stemmed from lower demand by coal power operators and fluctuating economic conditions across the EU. The average price of European emission allowances dropped significantly, from $86.5 to $66.9 (€84 to €65) per tonne.
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DEHSt head Daniel Klingenfeld emphasised that while 2024 was a strong year for emissions trading, more work remains to meet environmental goals. His sentiment was echoed by Dirk Messner, President of the German Environment Agency, who advocated for a ‘climate bonus’ to support vulnerable households amid rising carbon prices.
Despite challenges, European emissions trading made strides in reducing allocated allowances, aligning with long-term goals of limiting emissions. Power plants, industrial firms, airlines, and shipping companies continue to play pivotal roles in this system.
Germany’s record-breaking performance highlights the critical role of carbon pricing in funding the transition to a sustainable economy.
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