Fuel Emissions Trading Act (BEHG)

The German government has enacted the Fuel Emissions Trading Act (BEHG) for national certificate trading as part of the 2019 climate protection package. Since January 01, 2021, the Fuel Emissions Trading Act prices emissions from the combustion of fossil fuels (natural gas, heating oil, gasoline and diesel), which primarily affect the heating and transport sectors.

The distributors of fuels must participate in an emissions trading system and pay the CO2 levy. The amount of the levy is determined from the CO2 price set by law and the CO2 emission factor. The revenues from the BEHG are to be used to reduce or stabilise the levy burden on electrical energy and to increase the commuter allowance.

The German Emissions Trading Authority at the Federal Environment Agency is responsible for enforcing the BEHG and plans to provide relief for particularly affected companies in the future through the BEHG Carbon Leakage Ordinance (BECV).