The municipal utility association (VKU) is urgently calling for the government to take a firmer stance against abuses within the CO2 trading market, particularly concerning heating and fueling purposes. Kai Lobo, Deputy Head of the association of municipal companies, warned the German Editorial Network that the current system risks becoming a “bidding war where speculators profit at the expense of municipal utilities, consumers, and small and medium-sized businesses-without bringing any added value to climate protection or the energy transition.”
This concern stems from the planned amendment to the Fuel Emissions Trading Act (BEHG). Under the current plan, emissions certificates are set to be auctioned between 55 and 65 euros per tonne of CO2 in 2027, a range that has been in place since this year. According to the VKU’s statement regarding the planned changes, the association is worried about “structural deficits” created by banks and financial service providers. These institutions do not require CO2 certificates themselves, but they buy the certificates to resell them on the secondary market, where proceeds can currently reach up to 70 euros per tonne due to the BEHG regulation.
The federal government is now proposing even further price increases, potentially pushing the cost to 75 euros. The VKU vehemently opposes these planned price hikes, arguing that doing so would only make “speculation even more lucrative.” Furthermore, the association is demanding stronger restrictions on who is allowed to participate in the auctions.
