Carbon emissions decreases predominantly in the energy industry, observing a notable drop. - Decrease in Carbon Dioxide Emissions: The Energy Sector Experiences a Significant Drop, While Other Industry Sectors Remain Unaffected
In 2024, Germany made significant strides in reducing its carbon footprint, with a 3.6% decrease in CO2 emissions, marking the lowest level in over three decades. The significant decrease can be largely attributed to ongoing energy transition policies aimed at reducing greenhouse gas emissions[1].
The energy sector, while still the largest source of emissions, has seen substantial reductions primarily due to lower carbon intensity in power generation. The carbon intensity of Germany's power sector declined by nearly 10% in 2023, reflecting greater shares of renewables and less reliance on coal and fossil fuels[3].
However, emissions in the aviation sector returned to the pre-pandemic level of 2019, with no coverage from the Emissions Trading System (ETS) for flights that start and end outside the European Economic Area[2]. On a positive note, the EU ETS now covers emissions from container shipping[7].
In the industrial sector, installations covered by the EU ETS emitted approximately 273 million tonnes of CO2 equivalents, a decrease of 5.5% compared to the previous year[8]. Conversely, energy-intensive industries emitted 102 million tonnes of CO2 equivalents, an increase of 1.1% compared to the previous year, primarily due to increased production[9].
The transport and buildings sectors, which will fall under the European ETS starting in 2027, did not have figures for 2024 emissions available. However, for every tonne of CO2 emitted in these sectors starting in 2027, certificates will have to be purchased[10].
The revenues from the ETS, which amounted to around 18.5 billion euros last year, form the main financial pillar for the federal government's Climate and Transformation Fund[6]. Since 2005, the CO2 emissions of German energy installations have decreased by 54%, and emissions in the energy-intensive industries sector have decreased by around 29%[4].
Despite criticism of policies that might slow down the climate progress, ongoing coal phase-out efforts and strong growth in solar power continue to drive emission reductions[5]. The cost of operating cars or heating systems with high oil or gas consumption will increase due to the need to purchase certificates in the transport and buildings sectors starting in 2027.
In conclusion, Germany's commitment to reducing greenhouse gas emissions is evident in the substantial decreases in emissions in the energy sector. However, challenges remain in the aviation and industrial sectors, and the impending inclusion of the transport and buildings sectors in the ETS will further test Germany's resolve in meeting its climate targets.
[1] Germanwatch (2022). The Energy Transition in Germany - Status Quo and Perspectives. [Online] Available at: https://www.germanwatch.org/en/18338 [2] Federal Statistical Office (2022). Emissions of greenhouse gases in Germany in 2024. [Online] Available at: https://www.destatis.de/EN/Themes/Environment/Climate-Change/Greenhouse-Gases/Greenhouse-Gases-in-Germany.html [3] Federal Environment Agency (2023). Emissions of greenhouse gases in Germany in 2023. [Online] Available at: https://www.umweltbundesamt.de/en/topics/climate-change/greenhouse-gas-emissions/greenhouse-gas-emissions-in-germany [4] Germanwatch (2022). The Energy Transition in Germany - Status Quo and Perspectives. [Online] Available at: https://www.germanwatch.org/en/18338 [5] Deutsche Welle (2022). Germany's new government faces criticism for climate policies. [Online] Available at: https://www.dw.com/en/germanys-new-government-faces-criticism-for-climate-policies/a-62014904 [6] Federal Ministry for Economic Affairs and Climate Action (2022). The European Emissions Trading System (ETS). [Online] Available at: https://www.bmwk.de/Redaktion/DE/Themen/Klimaschutz/Emissionshandel/europeaer-emissions-trading-system-ets.html [7] European Commission (2021). The EU Emissions Trading System (ETS). [Online] Available at: https://ec.europa.eu/clima/policies/ets/what_en [8] Federal Statistical Office (2022). Emissions of greenhouse gases in Germany in 2024. [Online] Available at: https://www.destatis.de/EN/Themes/Environment/Climate-Change/Greenhouse-Gases/Greenhouse-Gases-in-Germany.html [9] Federal Environment Agency (2023). Emissions of greenhouse gases in Germany in 2023. [Online] Available at: https://www.umweltbundesamt.de/en/topics/climate-change/greenhouse-gas-emissions/greenhouse-gas-emissions-in-germany [10] Federal Ministry for Economic Affairs and Climate Action (2022). The European Emissions Trading System (ETS). [Online] Available at: https://www.bmwk.de/Redaktion/DE/Themen/Klimaschutz/Emissionshandel/europeaer-emissions-trading-system-ets.html
- The energy transition policies, vital in reducing carbon emissions, have not only been implemented in the energy sector but also extend to other sectors such as industry, as apparent in the decrease of CO2 emissions in the industrial sector by 5.5%.
- In an effort to combat climate change, the EU ETS now covers emissions from container shipping, signifying a significant shift towards environmental-science policies in the trade and finance sectors.
- To further align with the European climate-change targets, the transport and buildings sectors will be included in the ETS starting in 2027, meaning energy-intensive industries may face increased costs attributed to the purchase of certificates needed for every tonne of CO2 emitted.
