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nEHS

In addition to the EU ETS, Germany launched its national emissions trading system (in German: Nationales Emissionshandelssystem, or nEHS) in 2021 for the heating and transport sectors. The aim is to reduce the CO₂ emissions coming from those sectors. Until 2022, only major fuels such as petrol, diesel, heating oil, liquefied petroleum gas and natural gas are part of the nEHS. From 2023 onwards, all other fuels, including coal, will be included. Same as in the EU ETS, covered industries must pay a price for each tonne of CO2 emitted. The nEHS certificates have a fixed price set by law until 2025. The price will gradually increase up to €55 by 2025. From 2026 the certificates can be acquire through an auctioning process. The fixed price started at €25 in 2021.