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Germany Freezes 2027 CO₂ Price Corridor as Global Emissions Hit a New High

Record emissions with weakening sinks heighten the stakes for Germany's short‑term CO₂ price freeze.

Overview

  • Coalition negotiators agreed to keep the national CO₂ price for transport and buildings in a €55–65 per tonne corridor in 2026 and unchanged in 2027, following the EU’s one‑year delay of ETS‑2 to 2028.
  • The plan requires amendments to the Brennstoffemissionshandelsgesetz, with officials saying the move provides planning certainty that avoids a potential jump toward the industry ETS level near €80/t.
  • ADAC estimates the 2026 levy equates to roughly 17–20 cents more per liter for petrol and diesel, with households on oil and gas facing higher annual heating costs.
  • Revenue from the national CO₂ charge flows into the federal Klima‑ und Transformationsfonds to fund climate measures and related support programs.
  • Separate analyses warn that ETS‑2 prices could reach about €100–€300/t by 2028, while the Global Carbon Budget 2025 reports fossil CO₂ at roughly 38.1 Gt this year (+1.1%) and diminishing land and ocean sink capacity, with China’s 2025 trend still within a small range of uncertainty.