Fuel Emissions Trading Act (BEHG)
The law on national certificate trading for fuel emissions (Brennstoffemissionshandelsgesetz) is part of the 2030 climate package and introduces emissions trading for the heating and transport sectors from 2021 onward, covering all fuel emissions that are not regulated by the EU Emissions Trading Scheme (ETS). It notably aims at avoiding carbon leakage. Certificate prices were agreed in parliament around October 2020. The German ETS will have a fixed price from 2021 to 2025 and will subsequently increase to EUR 55 (USD 61)/tCO2e in 2025. According to a World Bank report, "in 2026, allowances will be auctioned in a price corridor ranging between EUR 55 (USD 61)/tCO2e and EUR 65 (USD 72)/tCO2e. From 2027 onwards, allowance prices will be set by the market unless the government proposes a new price corridor in 2025".