EU Extends Emissions Certificate Reserve as Germany Ends Fuel Tax Rebate

EU negotiators agreed to keep the market‑stability reserve for emission allowances longer and to release additional certificates when prices exceed €45 per tonne CO₂, aiming to prevent sharp increases in fuel and heating costs. The reserve, originally set to expire at the end of 2030, will remain in place to smooth price volatility.

In Germany, the coalition of CDU/CSU and SPD decided to let the temporary fuel‑tax rebate (Tankrabatt) expire on 30 June, with the change taking effect on 1 July. Sepp Müller said, “Wir können es uns in der aktuellen Lage nicht leisten, Schulden dafür aufzunehmen,” and Armand Zorn added that the rebate would be phased out as planned. The government is discussing alternatives such as targeted subsidies for low‑ and middle‑income drivers, a higher commuter allowance, reduced energy taxes, a possible fuel‑price cap, and an over‑profit tax on oil companies.