Germany approves CO2 price reform for fuels

The German government has approved a reform regarding the national CO2 price for fuels. Under the new legislative draft, the price corridor for the national fuel emissions trading system will remain between 55 and 65 euros per tonne of CO2 in 2027, ensuring that costs for gasoline, diesel, heating oil, and natural gas do not exceed the previously established range for 2026.

This national system, introduced in 2021, serves to prepare the country for the expansion of the European Union's Emissions Trading System (ETS 2) to the buildings and transport sectors. While the EU originally planned to expand this system in 2027, member states agreed in late 2025 to postpone the start of ETS 2 until 2028.