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With the introduction of a new regulation (38th BImSchV) in January 2022, GHG quotas have become directly relevant for e-car drivers. But how exactly does this new regulation work?

To achieve political climate goals, the energy transition must advance, and CO₂ emissions must be significantly reduced. However, greenhouse gas emissions in the transport sector have decreased little to none over the last 20 years compared to other sectors. To address this, the bill to further develop the greenhouse gas reduction quota, known as the GHG quota, was introduced in May 2021. It serves as the successor to the biofuel quota that had been in place since 2007. In 2015, the transition was made to the greenhouse gas reduction quota, initially requiring petroleum companies to reduce their emissions by three percent through the use of lower-carbon energy forms. By 2019, the required reduction rose to four percent, followed by six percent in 2020, and seven percent for the compliance year 2022. The quota will continue to increase in the coming years, reaching up to 25 percent by 2030.

The GHG quota is intended to create incentives for reducing CO₂ emissions in transport.

Essentially, the legislator is pursuing three approaches to reduce CO₂ output in the transport sector:

  • Reducing traffic volume
  • Shifting traffic to lower-emission modes
  • Switching to alternative, climate-friendly propulsion methods

The latter is encouraged by introducing the GHG quotas – following the principle: those who emit CO₂ must pay for it, while those who reduce CO₂ emissions benefit. Petroleum companies pass the additional costs incurred onto fossil energy carriers, resulting in rising costs for petrol and diesel. At the same time, the GHG quota opens new revenue streams for clean propulsion concepts like electromobility. This creates an additional incentive for car owners and fleet operators to switch to low-carbon electric mobility – and profit from it.

E-car drivers actively contribute to reducing climate-damaging greenhouse gas emissions. To do so, they simply need to apply for the flat-rate CO₂ emissions credit at the Federal Environment Agency, which they can then sell to petroleum companies that are obliged to reduce emissions. The money is paid directly to e-car drivers. Fears of a modern form of indulgence trade are unfounded. All resulting GHG quotas are sold to petroleum companies. If drivers do not act themselves, the quotas are sold by the government to the petroleum industry.

How can charging infrastructure operators benefit from GHG quotas?

Since 1 January 2022, operators of public charging stations are considered “owners” of the GHG quota and can sell it onward. As charging point operators introduce zero-emission fuels into the transport sector, they can credit these saved CO₂ emissions as GHG quotas and subsequently sell them to quota-obligated petroleum companies. To minimise the effort and transaction costs associated with GHG quota trading, trade with petroleum companies is bundled through quota brokers. In this way, companies with charging infrastructure can easily benefit from electromobility and secure additional revenue.

Quota brokers offer fixed or variable premiums for quota transfers. Charging station operators also report the value of implemented kilowatt-hours. For e-car drivers, simply owning an electric vehicle is sufficient; specifying electricity quantities is not required due to a flat-rate charging value.

Note: If you make your charging station publicly accessible and wish to take full advantage of the GHG quotas, check whether you have received funding for charging infrastructure that is restricted to non-public charging stations. Discuss this with your charging infrastructure provider and seek advice.

Would you like to benefit from the GHG quota?

 

Learn how you can generate additional revenue with reev GHG quotas.