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The German Emissions Trading Authority (DEHSt) has published a background paper as of March 2020 on the national emissions trading system (nEHS), which will be introduced on the basis of the Fuel Emissions Trading Act (BEHG)(GALLEHR+PARTNER® reported).

The background paper goes into more detail on the reasons, basis, scope and obligated parties as well as the processes and mode of operation of the nEHS. A brief conclusion and outlook is also given.

In the above-mentioned background paper, among other helpful explanations, there are e.g. also explanations

  1. on the two mechanisms for avoiding double charging of EU ETS installations (reduction of the levy obligation on the distributor by the quantities of fuel delivered to and used in EU ETS installations vs. compensation application to DEHSt by the operator of an EU ETS installation for the additional pricing by the nETS) [siehe Seite 8 des Hintergrundpapiers];
  2. on the obligations of participating undertakings and relief in this respect in 2021 and 2022 [siehe Seite 11 des Hintergrundpapiers];
  3. on the management of infringements [siehe Seite 12 des Hintergrundpapiers];
  4. on measures to ensure the competitiveness at European and international level of companies affected by the additional fuel costs of the SESTA,
    • to prevent companies and their emissions from being relocated abroad (so-called carbon leakage) – financial support for climate-friendly investments by the companies concerned is envisaged for this purpose [siehe Seite 12 des Hintergrundpapiers]-

      and

    • on minimum protection against disproportionate indirect burdens resulting from the introduction of the nEHS in atypical individual cases [siehe Seite 12 des Hintergrundpapiers].

All in all, reference is made several times to ordinances still to be issued, in which the concrete formulation will be regulated in each case.

Furthermore, it is stated that DEHSt will provide further information on its website as soon as the organisational and technical preparations have progressed further.

Author: Holger Tabke, GALLEHR+PARTNER®
Date: 05.05.2020

GALLEHR+PARTNER® supports affected companies on issues related to the Fuel Emissions Trading Act (BEHG) and the National Emissions Trading Scheme (nEHS).

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