Compliance emissions markets are organised by states or regions and central mechanisms for implementing climate policy. Certain sectors or companies are legally obliged to participate. These companies must purchase emission rights for the emissions they cause and submit them to the responsible authorities.
The European Emissions Trading Scheme (EU ETS) is the most important climate protection instrument of the European Union and so far covers about 40 percent of all greenhouse gas emissions in the EU. Through the European Green Deal and according to the proposals in the EU Commission’s Fit for 55 package, the European emissions trading system is currently being reformed. Emissions from road transport and buildings are to be covered and priced under a new emissions trading system (EU ETS II).
In Germany, the national emissions trading system (nEHS) exists in parallel. According to the Fuel Emissions Trading Act (BEHG), distributors of fuels are obliged to acquire and submit national emission certificates.
With this national instrument, Germany bridges the gap in the EU ETS at least until emissions in the road transport and buildings sectors are priced by the EU ETS II.
Furthermore, the Carbon Border Adjustment Mechanism (CBAM) is intended to ensure that emissions contained in imported goods are priced equally through climate levies on imports. This system is intended to compensate for possible competitive disadvantages of companies within the EU ETS compared to non-European competitors and to prevent carbon leakage through a relocation of emission-intensive industries.
Participating companies are confronted with a complex set of rules and extensive compliance and reporting requirements that impact internal company processes. With our expertise, you can fulfil your obligations efficiently and be optimally prepared for the upcoming changes.