Experts emphasize that pricing CO₂ emissions is crucial for achieving climate neutrality, with the Umweltbundesamt advocating for social measures like a climate allowance to mitigate the impact on consumers.

Significant revenues from emissions trading are already allocated to other government expenses, and there is a call for behavioral adjustments among consumers, such as increased use of public transportation, to further cut emissions.

Recent emission declines have also been influenced by high energy prices reducing industrial output and increased electricity imports, which do not count towards local emissions.

The inclusion of fuels is expected to increase heating and fuel costs, as the limited issuance of certificates will drive up prices, according to UBA President Daniel Klingenfeld.

Klingenfeld highlights that Europe is on a path toward climate neutrality, emphasizing ongoing efforts and the importance of continued emission reductions.

Participation in the EU ETS involves 27 EU member states plus Norway, Iceland, and Liechtenstein, covering around 9,000 facilities responsible for 40% of Europe's greenhouse gases.

While the overall emissions under the EU ETS decreased by 5.5% last year, the energy sector saw a 10% reduction, whereas industrial emissions experienced a slight increase.

The EU ETS does not currently cover emissions from agriculture, most transport sectors outside air travel, private households, or smaller enterprises, but plans are underway to expand its scope.

The European Union's emissions trading system, launched 20 years ago, has successfully reduced greenhouse gas emissions across Europe by 51%, with Germany experiencing a 47% decrease, primarily driven by a shift towards renewable energy and the phase-out of coal.

In the past year, 1,716 facilities in Germany registered under the EU ETS emitted approximately 273 million tonnes of CO₂-equivalents, marking a 5.5% reduction from the previous year, although industrial emissions slightly increased by 1%.

The EU ETS currently covers emissions from energy-intensive industries, the energy sector, intra-European air traffic, and maritime transport since 2024, with plans to include fuels in 2027, which will raise costs for heating and transportation.

Starting in 2027, fuels will be incorporated into the system, leading to higher costs for heating buildings with fossil fuels and fueling vehicles, as CO₂ prices have risen from under ten euros to around seventy euros per ton due to limited emission rights.

Future plans involve reducing free emission allowances, especially where the Carbon Border Adjustment Mechanism (CBAM) is expected to be implemented, to further incentivize emission reductions.