European and national emissions trading generated total revenues of €21.4 billion in Germany in 2025, significantly more than in the previous year. According to the German Emissions Trading Authority (DEHSt) at the Federal Environment Agency (UBA), the proceeds will go entirely to the Climate and Transformation Fund (KTF), which finances key measures to achieve Germany’s energy and climate targets.
The Federal Environment Agency believes that emissions trading has become a key cross-sectoral instrument for climate protection. CO₂ pricing creates effective incentives for the use of energy-efficient and climate-friendly technologies while supporting investments in the energy-efficient renovation of buildings, the decarbonization of industry, and the expansion of renewable energies, electromobility, and charging infrastructure. The aim is to combine ambitious climate protection with social compatibility and economic competitiveness.
In 2025, auction proceeds of around €5.4 billion were generated in Germany under the European Emissions Trading System (EU ETS 1). Although this figure was slightly below the previous year’s level, the average price for emission allowances rose to around €74. The lower revenues are mainly due to the further reduction in auction volumes, which is part of the European reform to tighten emissions trading.
Revenues from the national emissions trading system (nEHS) for heating and transport grew significantly more strongly. In 2025, they amounted to around €16 billion, which was about 23 percent higher than the previous year’s figure. The increase was mainly due to the higher fixed price of €55 per certificate, while the volumes sold remained almost constant. At the same time, the high sales figures highlight the continuing need for action in the building and transport sectors, whose emission levels are still well above climate targets.
From 2026, certificates in the national emissions trading system will be auctioned for the first time within a price corridor of €55 to €65. From 2028, national emissions trading is to be largely replaced by European emissions trading for fuels (EU ETS 2). This is intended to further increase the economic efficiency of climate-friendly technologies and at the same time create financial leeway for social support for the transformation.
The revenues from emissions trading thus underscore its growing importance as a source of financing for climate protection and transformation and as a key instrument on the path to a climate-neutral economy.
Further information can be found in the press release issued by the German Federal Environment Agency.
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