In 2023, Germany experienced the largest decline in greenhouse gas emissions since the start of the European Emissions Trading System (EU-ETS 1) in 2005. According to the German Emissions Trading Authority (DEHSt) at the Federal Environment Agency (UBA), emissions from the 1,725 stationary installations fell by around 18% compared to the previous year, reaching a new record low of around 289 million tons of CO₂ equivalents (CO₂-eq).
Important factors for the decline
Dirk Messner, President of the Federal Environment Agency, emphasizes that the significant decline in emissions in the energy sector is primarily due to the expansion of renewable energies and the decline in coal-fired power generation. In the industrial sector, the fall in emissions is mainly due to the decline in production as a result of the Russian war of aggression in Ukraine.
Jürgen Landgrebe, head of the "Climate Protection, Energy, German Emissions Trading Authority" department at the UBA, adds that the realignment of European climate policy and the lowering of emissions caps in emissions trading were decisive. The record revenue of over 18 billion euros from emissions trading flowed entirely into the German government's Climate and Transformation Fund.
Energy and industrial sectors
Emissions from the energy supply fell by 22% to 188 million tons of CO₂-eq, which is attributable to the lower demand for energy and the increasing share of renewable energies. The decline in gross electricity generation from lignite (25 percent), hard coal (36 percent) and natural gas (2 percent) was particularly strong.
In the industrial sector, emissions fell by 10 percent to 101 million tons of CO₂-eq. Non-ferrous metals (19 percent decrease) and the "other mineral processing industry" (18 percent decrease) were particularly affected. The chemical industry, refineries and cement clinker production also recorded decreases of between 9 and 17 percent.
Air traffic and European comparison
Emissions from domestic air traffic in Germany rose by 4.5% to around 7.6 million tons of CO₂-eq in 2023, but remained below the level before the Covid-19 pandemic. Across Europe, emissions from all installations participating in the EU ETS 1 fell by 17% to around 1.09 billion tons of CO₂ eq. Since 2005, the Europe-wide decline in emissions has totalled around 48%.
Importance of emissions trading and future prospects
Emissions trading plays a central role in the reduction of greenhouse gases and the transformation to a climate-neutral economy. The latest measures and investments clearly show that ambitious climate protection is possible without compromising economic competitiveness. Germany and Europe are relying on innovative technologies and sustainable solutions to achieve climate targets and accelerate the transition to a green economy.
Further information and measures
The German Emissions Trading Authority (DEHSt) at the Federal Environment Agency is responsible not only for the EU ETS 1, but also for national emissions trading for fuels (nEHS) and European emissions trading for fuels (EU ETS 2). It is also responsible for the carbon border adjustment mechanism (CBAM) and the compensation of indirect CO₂ costs for electricity-intensive companies.
Conclusion
The record reduction in greenhouse gas emissions in Germany is an important step towards achieving national and European climate targets. The combination of political measures, technological innovations and the consistent expansion of renewable energies shows that sustainable climate protection and economic success can go hand in hand.
