The Fuel Emissions Trading Act (BEHG) is part of the national emissions trading system (nEHS) in Germany, which has been in force since January 2021. The BEHG trading regulates the CO₂ pricing of fossil fuels such as natural gas, liquid gas, heating oil, diesel or gasoline. The BEHG also covers additional non-ETS sectors, such as transport, building heating and small installations, which were previously not subject to the EU ETS fall. With the introduction of the EU ETS II, BEHG trading will be integrated into European CO₂ certificate trading. This means that the fixed certificate prices and fixed price corridors for German CO₂ certificates will no longer apply and will be traded freely from 2027.
Which companies are affected by SESTA trading?
The following are affected by SESTA trading "Distributor of fuels"that neither participate in the EU ETS nor are exempt from CO₂ offsetting. These include, for example, mineral oil producers, natural gas suppliers and importers of fossil fuels. The trade in fossil fuels, energy and industrial plants and heat generators in the building sector are also affected. Indirectly, since 2023 also real estate landlords The landlords have to bear a share of the CO₂ costs arising from fuel emissions trading. This is done in accordance with the CO₂ Cost Sharing Act, which regulates the allocation of additional costs between tenants and landlords. Overall, participation in the BEHG is responsible for around 4,000 German companies along the fossil fuel value chain obligatory.
Functioning of SESTA trading
German BEHG trading is part of EU emissions trading, trades in national emission allowances (nEZ) and is based on the principle of "Cap and Trade. A politically determined upper limit ("cap") defines the maximum amount of CO₂ emissions that may be produced through the consumption of fossil fuels. As in the EU ETS, this cap is gradually reduced. Affected companies are obliged to reduce their CO₂ emissions to calculatefor every tonne of CO₂ emitted, a corresponding Acquire a certificate and then submit them to the German Emissions Trading Authority (DEHSt) in due time. to be submitted for cancellation.
The certificates are tradable, which means that a Market price based on supply and demand. As soon as certificates become scarce, their price rises, which creates an additional incentive for companies to reduce their emissions. At the same time, companies can use surplus Sell certificates or, if necessary, additional repurchase. This creates an economic incentive to use fossil fuels efficiently and to switch to lower-emission alternatives.
Acquisition of certificates and options in SESTA trading
Companies can purchase BEHG certificates (national emission allowances, nEZ) up to and including 2025 at a fixed price of EUR 55 in Germany directly on the European Energy Exchange (EEX) in Leipzig, provided they have submitted an application for admission. Alternatively, they have the option of obtaining certificates via approved Intermediary or Intermediaries to acquire. These service providers offer a range of services, from pure trading processing and consulting to the validation of emission reductions. Depending on their specific needs, companies can choose the right service provider to effectively manage their CO₂ certificates and meet their obligations under emissions trading. This is particularly useful when trading is organized via auctions from 2026 onwards.
Conditions and deadlines in SESTA trading
Companies must submit their certificates annually by September 30 to the German Emissions Trading Authority (DEHSt) in accordance with the amount of CO₂ emissions they caused in the previous year. To do this, they should ensure that their Issue reports are correct and complete and that Emissions trading register account is maintained without errors. At the same time, the necessary certificates must be acquired and submitted first. The certificate auction phase will start in 2026 with a Price cap up to a maximum of 65 eurosbefore free pricing on the market is made possible from 2027. Experts then expect certificate prices of between 200 to 350 Euro. Companies should plan their purchases in good time and keep an eye on fluctuating prices. External service providers or consultants with experience in emissions trading are helpful here.
Consequences of violations of the BEHG
As soon as a company does not correctly document its CO₂ emissions or does not cover them with certificates in accordance with BEHG, customs will make an estimate. Uncovered CO₂ emissions or missing certificates will have to be paid retrospectively from 2026 for at least 100 Euro acquired and offset. This sum is regularly adjusted in line with the European Consumer Price Index, meaning that the financial burden will increase over time. In the event of negligent or even deliberate breaches of the BEHG obligations, there is a risk of Fines of up to 500,000 euros. Companies that repeatedly violate the requirements risk losing their access to the national emissions trading register.
Conclusion
BEHG trading is a mandatory, but also strategically useful measure for companies to price CO₂. Due to the gradual transition from national emissions trading to the European EU ETS II from 2027, the market for CO₂ certificates will become increasingly dynamic. Companies should therefore take early action to optimize their emissions costs - be it through strategic procurement of certificates, investments in low-emission technologies or the use of external consulting services. Compliance with deadlines and correct documentation are essential in order to avoid high fines and regulatory consequences. In the long term, the rising price of CO₂ certificates will force companies to make their business models more sustainable and further reduce their use of fossil fuels.