Germany to pay millions for EU emissions targets missed between 2013 and 2020

Germany must purchase more than eleven million emission allocations totalling several million euros after overshooting its EU greenhouse gas emissions targets in the sectors transport, buildings and agriculture between 2013 and 2020. Under the EU Effort Sharing Scheme, it must purchase these so-called allocations from other member states that overachieved their targets. According to a government press release, economy ministry state secretary Sven Giegold has signed agreements with Bulgaria, Hungary and the Czech Republic. The ministry did not provide details on the total cost of the allocations, but said it would provide more information once the transactions are done by the end of February 2023. 

"Germany has missed its overall climate targets in important sectors between 2013 and 2020, especially in the transport and buildings sectors,” Giegold said. “But this time we are getting off cheaply. If we continue to miss our climate targets, we will have to pay much higher fines. Therefore, in these times, more than ever, we must resolutely promote climate protection in all sectors." The money will be invested in additional climate protection measures in Bulgaria, Hungary and the Czech Republic.

Greenhouse gas emission limits for EU countries are set and pursued in two different areas, the so-called ETS and the non-ETS sectors. Emissions from power generation, energy-intensive industries and civil aviation (around 45 percent of EU greenhouse gas emissions) are capped under the European Emissions Trading System (EU ETS). Greenhouse gas emissions from transport, buildings, waste, some (smaller) industries and agriculture (but not LULUCF) (almost 60 percent of total domestic EU emissions) are limited by an EU-wide target and split up into member state specific targets under the EU Effort Sharing Decision/Regulation.