Transport will be crucial in EU and Germany's greenhouse gas reduction programmes

EU countries, including Germany, have said that by 2030 they will reduce greenhouse gas emissions by 55% compared to 1990. A 30% reduction in greenhouse gas emissions compared to 2005 was agreed in the sectors not covered by EU emissions trading – the transport sector being one of them.

To comply with its climate target Germany has passed a Fuel Emissions Trading Act which requires companies that put heating oil, natural gas, petrol and diesel on the German market to participate in the national emissions trading system from the beginning of 2021. The costs they incur in this way will be passed on by the so-called distributors to their customers, and thus to anyone who uses fossil fuels.

This introduces a CO2 price for heating and transport, which have not been covered by EU emissions trading so far. The number of certificates will be limited in line with the government's climate goals. The use of vehicles with combustion engines will become more expensive and the demand for other forms of propulsion or even other forms of mobility will increase accordingly. The transport sector is particularly important because greenhouse gas emissions in Germany were at the same level in 2018 as they were in 1990. The steady rise has thus been halted, but a reduction has not occurred.