Under the greenhouse gas (GHG) reduction quota (THG-Quote), companies that place diesel or gasoline fuels on the market are required to reduce their GHG emissions by an annually increasing percentage. This quota is defined in the Renewable Energy Directive (RED) and implemented nationally in Section 37 of the Federal Immission Control Act (BImSchG). The reduction is based on a reference value, which is calculated by multiplying a fossil-based comparison value by the energy content of all fuels and compliance options used by the respective company.
The calculation method for GHG quotas is defined in the BImSchG. Compliance options include, for example, electricity-based fuels or electricity used in the field of electromobility.
As an additional compliance option, companies may participate in the quota trading system. Both obligated and non-obligated parties can take part in quota trading. In practical terms, this means that companies unable to meet their greenhouse gas (GHG) reduction obligations under the quota system can fulfill them by purchasing quotas from other companies—at a market-based price.
The 37th Federal Immission Control Ordinance (BImSchV) allows GHG quota trading for hydrogen refueling station (HRS) operators, while the 38th BImSchV enables trading for battery-electric vehicles. Owners of hydrogen-powered vehicles cannot participate in the quota trading system, as they do not place the fuel on the market themselves. The GHG quota trading system is intended as an instrument to promote alternative drive systems and the corresponding infrastructure, financed by companies with GHG obligations. The quota requirement increases annually and is expected to reach 25% by 2030. Trading of GHG quotas takes place via certificates on trading platforms. In the case of large-scale beneficiaries, transactions may be executed through direct contracts, which are supervised by the German Environment Agency (UBA).
GHG quota trading is a market-based tool designed to promote renewable energy sources in a cost-efficient manner. It also supports the development of a hydrogen-based economy by helping to reduce hydrogen prices at refueling stations. At the same time, the rising cost of fossil fuels makes hydrogen more competitive.
However, GHG quota prices have dropped significantly in recent years due to market dynamics and falsely declared certificates, which has, in part, limited the intended effectiveness of the quota trading system.
Further information on GHG quotas:
GHG Quota Trading – Participation Options for Climate-Friendly Commercial Vehicles