EEX bourse becomes platform for German fuel emissions trading

FRANKFURT, March 25 (Reuters) - The European energy bourse EEX has been awarded the contract for the sale of emissions allowances under a new tax on greenhouse gas emissions levied on German suppliers of transport and heating fuels, it said on Thursday.

The tax, which became obligatory from January, sets a carbon dioxide (CO2) emissions equivalent price on gasoline and diesel, heating oil, coal and natural gas, which previously were not included in the European Emissions Trading Scheme (ETS) for utilities and the energy-intensive industry.

By setting a tax of initially 25 euros per tonne CO2 equivalent, the government expects to raise 7.4 billion euros ($8.73 billion) this year and thereafter raise income annually to reach 55 euros per tonne by 2025.

The money will go towards capping a renewable energy support charge levied on retail electricity and compensating commuters for rising travel costs.

The EEX, based in Leipzig, Saxony, in eastern Germany, is already active in European CO2 emissions and environmental markets outside the EU.

The latest move opens another revenue stream which Saxony’s Economy Minister, Martin Dulig said confirmed the exchange’s role as “an internationally recognised centre of competence for exchanged-based commodity and emissions trading”.

The sale of certificates under the new regime will take place via EEX at fixed prices between October and December during at least two periods each week, for which registration will open in September, the EEX said.

Participants must surrender their certificates covering 2021 by Sept. 30, 2022 to the registry of the German Emissions Trading Authority (DEHSt).

From 2026, the distribution of certificates will be moved into an auction process. ($1 = 0.8477 euros) (Reporting by Vera Eckert, editing by Barbara Lewis)