Bundesrat Clears Amendment of Greenhouse Gas Emission Trading Act

The Bundesrat cleared a bill containing mainly an amendment of the Greenhouse Gas Emission Trading Act (TEHG) transposing two European emission trading related directives. Despite recommendations of two of its experts committees, the Bundesrat decided not the invoke the Mediation Committee procedure.

The revised TEHG shall implement Directive 2008/101/EC, which includes aviation activities in the EU trading scheme for greenhouse gas emission allowances, and Directive 2009/29/EC on the greenhouse gas emission allowance trading scheme of the European Community into German law. The two directives further develop and harmonise the European Union Emissions Trading System (EU ETS) by including more industries as of 2012 respectively 2013, introducing a centralised EU-wide cap on emissions and a fully harmonised European allocation system for emission allowances. Besides, auctioning of emission allowances will be the rule for the power generation sector. These changes required amendments in the German TEHG.

Starting 2013, the number of auctioned emission allowances will be about five times as high as between 2008 and 2012. To the extent the additional revenues exceed the EUR 900 million allocated to the federal budget plus costs of the German emission trading scheme administration, revenues shall go into the Energy and Climate Fund.

Acting upon the recommendation of the Bundesrat, the Bundestag had made certain alterations of the bill, inter alia regarding certain exemptions and simplifications for small and medium-sized companies.

As the Bundestag had not acted on two demands by the Bundesrat, one of which was the request that the German Federation share the revenue generated by the sale of emission allowances proportionately with the federal states and compensate the states for tax losses resulting from the deductibility of the purchase costs of certificates, the competent Bundesrat committee had recommended to invoke the Mediation Committee.

Yet the Bundesrat did not object to the bill, and did not follow the recommendations of its committees. This means the bill (ref.no. 17/5296) as amended by the Bundestag on 9 June 2011 (ref.no. 17/5711) can in principle enter into force after signature by the Federal President and its promulgation in the Federal Law Gazette.

Source: Bundesrat

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1 Response to “Bundesrat Clears Amendment of Greenhouse Gas Emission Trading Act”

  • The most worrying is that it seems that more and more people don’t trust the media and environmental agencies anymore, all the more since the failure of the Copenhagen summit. I am currently working in carbon management company in South Africa (http://www.climateafrica.co.za/ , http://www.climatestandard.org/) and more and more people come up with stuff like “Why should we reduce our ghg emissions when volcanoes are responsible for more CO2 emissions than human activities?”. I don’t know where people hear that but i suspect anti-ecologist to be behind such statements. I did some research and volcanoes are responsible for 200 million tons of emissions whereas human activities represent 30 billion tons. I hope that the media will cover such questions more accurately, so that people become really aware of the problem.

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