It is undeniable that CO2 plays one of the central roles in climate protection. Therefore, CO2 pricing is also considered an important instrument in Germany to achieve climate protection goals. To this end, among other things, the German Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz – BEHG) was introduced. Originally, the BEHG only covered CO2 emissions generated by burning heating oil, natural gas, petrol and diesel. In a new draft bill for 2023, CO2 from coal and waste was also to be included. In the amendment, a pricing for greenhouse gas emissions from the combustion of coal was ultimately adopted for the beginning of 2023; fuel emissions from waste incineration are to be comprehensively included only from 2024. With the amended BEHG, CO2 pricing is now extended to all fossil fuel emissions. Thus, a complete legal framework for CO2 pricing of all fuels covered by national emissions trading has been created.
For waste producers, this consequently entails an increase in costs. From 01/01/2024, the statutory CO2 tax will be levied on waste to be thermally recycled, in addition to the regular incineration fees. The exact CO2 tax depends on various factors, such as the calorific value, the waste code number and the biogenic content in the material.
In addition, discussions about the steering effect of CO2 pricing are of course ongoing. Some experts see no effect on the amount of waste incinerated due to higher prices or costs and fear an increasing outflow abroad. Others, however, see positive effects. On the one hand, market actors would seek alternative strategies to avoid costs in view of impending cost increases; on the other hand, end consumers would also try to avoid waste in the event of noticeable price increases.1
As the Brüning Group, we always follow market developments very closely. It cannot be ruled out that the CO2 tax will lead to one or the other shift in volumes. However, the waste market is used to constant changes in volume flows. For us, as Waste-to-Energy unit, we will continue to ensure the supply and disposal of our suppliers and customers through our national and international network. The past has shown that solutions can always be found on a partnership basis at eye level. We are sure that this will also be the case this time.
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1 Source: German Bundestag – Text on criticism of CO2 price for waste incineration (German version only)