Effects of the Fuel Emissions Trading Act (BEHG) on prices for the thermal utilization of waste

The "Paris Agreement" adopted at the World Climate Conference on December 12, 2015 provides for compliance with the 1.5 degree target by 2050. Since then, the EU legislator has adopted various climate protection measures with its comprehensive Green Deal program. However, German lawmakers are also adopting individual measures to implement the 1.5-degree target, especially as Germany's Climate Protection Act envisages climate neutrality by 2045.

Emissions trading with CO2 certificates is a means that has been implemented for years to create incentives to reduce or avoid CO2 emissions. The basic principle of emissions trading is to determine the amount of tons of CO2 that may be emitted by defined groups such as companies or industrial sectors. Those who belong to the defined group and whose activities have been identified as causing climate-damaging CO2 emissions require an allowance for each tonne of CO2 emitted. This authorization is obtained by each individual concerned through the purchase of CO2 certificates. Without the corresponding CO2 certificates, there is no authorization to emit CO2. The emission of CO2 and thus the use of clean air is priced.

As of January 1, 2024, thermal waste treatment will be included in emissions trading under the BEHG. The waste disposal sector will now make a contribution as part of the climate targets. This means that in addition to the disposal service, the CO2 generated will also be priced.

The Fuel Emissions Trading Act, the law that regulates national emissions trading, started back in 2021. Since then, CO2 emissions from the heating and transport sectors have been priced for the main fuels heating oil, natural gas, petrol, liquefied petroleum gas and diesel.

With the change to the BEHG on January 1, 2024, waste is classified as a fuel in accordance with the BEHG if it is thermally recycled.

The respective operators of thermal waste treatment plants are obliged to purchase emission allowances. The costs for the CO2 certificates are passed on to the suppliers of the waste via a rolling mechanism. This increases the price for the disposal of waste. However, the CO2 price is only calculated on the fossil portion of the waste. The biogenic portion is not taken into account in the pricing.