On 15th March 2021, European Energy Exchange AG (EEX) was awarded the contract for the sale of fuel emission allowances in the national Emissions Trading Scheme (nETS) by the German Federal Environment Agency. Fuel emissions trading has been in force in Germany since 1st January 2021. The instrument will set a CO2 price for the heat and transport sectors at a national level for the first time, as previously this has not been covered by the European Emissions Trading Scheme (EU ETS).
All CO2-emitting fuels placed on the market, in particular petrol, diesel, heating oil, liquefied petroleum gas, natural gas and coal, are included in the nETS. The obligated parties under the nETS are those who place fuels on the market, for example natural gas suppliers or companies in the mineral oil industry.
Peter Reitz, Chief Executive Officer of EEX, says: "EEX has been active as an auctioning and trading platform at a European level for many years. We are very pleased on the news that EEX has been awarded this contract for the national ETS. This gives us the opportunity to support climate protection with our considerable experience and expertise in further sectors in which Germany is a pioneer."
For the nETS, a fixed-price phase is initially planned until 2025, during which emission certificates will be issued at a legally fixed – and annually increasing – price. Up to and including 2025, the sale of such emission certificates will take place via EEX at these fixed prices. From 2026, the certificates will then no longer be sold at the fixed price, but will move into an auction process.
Participants of the nETS must surrender the previously acquired certificates for the 2021 reporting year in the Emissions Trading Registry of the German Emissions Trading Authority (DEHSt) for the first time until 30th September 2022.
The emission allowances for 2021 will be offered for sale on at least two dates per week between October and December 2021. The exact dates will be published on the EEX website at least six weeks before the start of the sale. From September 2021 onwards, participants of the nETS can submit an admission application to EEX. In addition to direct participation in the sale, it is also possible to purchase the emission allowances via another authorised participant (intermediary).
Saxony's Minister of Economic Affairs, Martin Dulig, comments: "I congratulate EEX on winning the contract as the sales platform for national fuel emissions trading. This confirms the company’s path to success. We are pleased to have such a successful and innovative financial business as well as an internationally recognised centre of competence for exchange-based commodity and emissions trading in Saxony".
Further information on national emissions trading are available on the DEHSt website: https://www.dehst.de/EN/national-emissions-trading/acquisition-and-sale/acquisition-and-sale_node.html;jsessionid=E6CF127553C313966476510D874A331C.2_cid321
The European Energy Exchange (EEX) is the leading energy exchange in Europe which develops, operates and connects secure, liquid and transparent markets for energy and related products. As part of EEX Group, a group of companies serving international commodity markets, EEX offers contracts on Power, Natural Gas and Emission Allowances as well as Freight and Agricultural Products. EEX also provides registry services as well as auctions for Guarantees of Origin, on behalf of the French State: www.eex.com