Germany announces new electricity trading scheme which will curb CO2 emissions

The German government has said that it will introduce an electricity trading system encouraging the use of combined heat and power (CHP), which will avoid 50 million tonnes of carbon dioxide emissions in 2010.


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The German Federal Environment Ministry announced on 10 August that grid operators will have to buy a minimum 12% of their electricity from CHP producers, which will increase to 20-25% by 2010.

An Environment Ministry spokesperson confirmed to edie on 11 August that this measure could cut 23 million tonnes of CO2 emissions from 1998’s levels. The measure follows 18 May’s Cogeneration Law protecting CHP plants from competition by setting a minimum price for electricity, which is above market levels at 0.09 marks (3 pence)/kilowatt hour.

Under the new scheme grid operators with under or over-filled quotas will be able to buy and sell voucher-like certificates via the stock market.

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