30.09.2020 | What the German Fuel Emissions Trading Act means for Axpo Germany's customers

An explanatory video about a cumbersome law

Axpo Germany is striking out in new directions in customer communication: Together with an expert, the origination team in Düsseldorf created a video that will help customers from the industry and energy supply business understand the challenges confronting them under the new German Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz, BEHG).

The German language is well known for its intricate word combinations in the form of extra-long compound nouns – one only has to think of the classic "Vierwaldstätterseedampfschifffahrtskapitän" (Lake Lucerne steam ship captain).

The new Fuel Emissions Trading Act – also known as “Brennstoffemissionshandelsgesetz” in German – adopted in Germany fits seamlessly into this category of never-ending words that have native speakers from other language regions clapping their ears.

At the thought of the new law, German companies affected by the BEHG are scratching their heads, frowning and asking themselves how they will be impacted.

CO2 pricing for the transport and heating sector as of 2021

What exactly is the BEHG? The law was adopted by the German Parliament at the end of 2019 and establishes the legal framework for emissions trading in the area of transport and heating. The law will be introduced on 1 January 2021.

The BEHG foresees that those sectors which are not part of European trading for CO2 emission allowances will be subject to CO2 pricing. After an initial phase with fixed selling prices, emission certificates will be auctioned as of 2026. In order to react in a timely and compliant manner, the affected players, particularly consumers and the energy industry, must be well prepared.

Expert interview as a service for the customer

With the goal of offering its customers some orientation on the subject, Axpo Germany is striking out in new directions and has created an explanatory video: Dr Tobias Woltering, an expert on energy law at the German law firm Heuking Kühn Lüer Wojtek in Düsseldorf, addressed the most important aspects of the new law with the cumbersome name in front of the camera.

Andreas Metschke, Senior Originator at Axpo Germany, explains the idea behind the video: "It was important to us to show customers from the industry and players from the energy business what awaits them in the near future. We are dealing with an extremely comprehensive, new policy. As a result, we invited Tobias Woltering as a BEHG expert who has been dealing with the topic in great detail and could convey all the important information in simple language.”

Risk of a dual burden under the BEHG and European emissions trading

In the conversation Andreas Metschke and Tobias Woltering address all the most important key points of the BEHG in order to analyse the current situation and to attempt an outlook to the future: What is the scope of the BEHG; what obligations do those responsible have; how are fuel emissions determined; how does certificate trading work; how do additional costs for the industry occur; what does this burden mean for their customers?

Tobias Woltering comments: "The new policy is extremely complex, which is why there are still a lot of open questions. In particular, there is a risk of a duel burden under the BEHG and European emissions trading, which has created great uncertainty among those impacted.”

If you want to know what the BEHG means in detail, you can watch the video here:

About Axpo Germany

Axpo has been active in Germany since 2003. In addition to marketing electricity from renewable energies, the core expertise of the subsidiary with headquarters in Leipzig and Düsseldorf includes services in the areas of procurement, delivery and trading of electricity, gas, CO2 certificates and Guarantees of Origin. Special attention is given to power purchase agreements (PPAs) for renewable energies.

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