(dpa) Sales of carbon dioxide emissions rights generated 12.5 billion euros (14.1 billion dollars) for the German state in 2021, making it a record year for cash flowing into the nation’s climate fund, the Federal Environment Agency said on Wednesday.
The main reason for the surge in takings last year was Germany’s new CO2 pricing system, which came into effect a year ago and brought in 7.2 billion euros, the agency said.
Meanwhile, revenues from the sale of rights in European emissions trading doubled from 2.7 billion euros in 2020 to 5.3 billion euros.
CO2 pricing is intended to de-incentivize the burning of fossil fuels, which contributes to global warming.
The cash will go towards Germany’s Energy and Climate Fund (EKF), which is used to promote climate-friendly incentives.
Last year, 4.7 billion euros was paid out from the EKF to reduce the EEG levy, which subsidizes renewable energy.
“The revenues from CO2 pricing make an important contribution towards implementing the energy transition, finance climate change mitigation projects and are also used to relieve the burden on consumers,” Federal Environment Agency President Dirk Messner said in a statement.