CO2 Management
Optimize Your Trade with National Emission Certificates from Previous Years
Why are submissions of Certificates Important? What happens if nEZ Requirements are not Met? How to handle an Account Suspension in the nEHS Register? How do we from CELSIUS support you with the
Fulfillment of BEHG and nEHS Requirements?
Published on 05/08/2024
Trading with National Emission Certificates (nEZ)
Reading Time:
10 min
The national emissions trading system (nEHS) under the Fuel Emissions Trading Act (BEHG) requires companies to calculate and gradually reduce their emissions. This mechanism creates incentives for more sustainable business models while also obligating companies to acquire national emission certificates (nEZ). Even with precise calculations and timely submission of the emissions report, adjustments to emission values may occur retrospectively.
In this article, we explain the reasons for submissions of certificates from previous years, the consequences of non-compliance with the requirements, and provide solutions and support for managing these challenges.
Key Takeaways
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Necessity: A correction of the emissions report may result in companies needing to submit certificates from previous years.
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Consequences: Failure to meet the nEZ requirements may result in account suspensions, fines, and sanctions in the nEHS register.
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Consultation: CELSIUS supports you in obtaining certificates, resolving account suspensions, and complying with BEHG and nEHS requirements through strategic consulting and market analysis.
How Do Recalculations of Energy Quantities Affect nEHS Certificates?
If companies need to recalculate the quantities of energy sold, it can impact the number of nEHS certificates they must retire. There are two possible scenarios when recalculations occur:
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1. Reduced Energy Quantity: If the recalculated energy quantity is lower than previously reported, and too many nEZ 2022 certificates were surrendered, these cannot be refunded or transferred back to the account.
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2. Increased Energy Quantity: If the actual energy quantity sold is higher than originally reported and calculated, the required number of nEZ must be adjusted and additionally covered. Compliance can be achieved with certificates from the corresponding year or any subsequent years.
Account Suspension: What happens when you don't comply with the nEHS Requirements
A recalculation and increase in the nEZ demand leads to an account suspension in the nEHS register at DEHST. This means that the affected company can only submit certificates and receive them from other trading partners but cannot transfer certificates.
We assist you in Reacquiring Certificates
To unlock a suspended account, the emission report must be submitted and the missing certificates must be acquired and surrendered. While a cost-effective reacquisition of nEZ 2022 certificates is possible on the secondary market, it is time-consuming and resource-intensive. CELSIUS supports companies in the efficient and strategic procurement of these certificates, leveraging expertise from market analyses and providing targeted consultations.
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What is the Difference Between Voluntary and Mandatory CO2 Markets?Voluntary CO2 markets allow companies and individuals to offset their emissions on a voluntary basis, while mandatory CO2 markets are regulated by the government and require companies to comply with legal emission limits.
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How Does the National Emissions Trading System (nEHS) Work?The national emissions trading system (nEHS) in Germany was introduced in 2021 and primarily covers the heating and transport sectors, which are not included in the EU Emissions Trading System. Companies must acquire certificates for each ton of CO2 they emit. These certificates are initially issued at fixed prices, which gradually increase, and from 2026 onwards, they will be distributed through auctions. Surplus certificates can be traded.
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How Do CO2 Markets Contribute to Combating Climate Change?CO2 markets contribute to combating climate change by creating financial incentives for reducing greenhouse gas emissions, promoting investments in green technologies, and helping companies and countries meet their climate targets.
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What Are the Benefits of Voluntary CO2 Markets?Voluntary CO2 markets enable companies and individuals to offset their carbon footprint, enhance environmental awareness, and achieve a positive public image. A company can participate in a voluntary CO2 market by financing emission reduction projects or purchasing certificates from recognized programs that meet accepted standards for carbon offsetting.
How can CELSIUS help you meet the requirements of BEHG and nEHS?
We support the internal processes of companies to ensure timely reporting and compliance with deadlines and requirements. We offer access to the primary market at EEX and use our expertise and experience to strategically identify favorable purchasing times in the secondary market. We handle the design of customized procurement strategies and administrative tasks, which conserves internal resources and improves risk management.
Our Expertise at your Fingertips. CELSIUS Insights.
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