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    GHG quota (GER)

    What is the GHG quota and how does it work?

    Find out how companies benefit from the greenhouse gas reduction quota and reduce emissions.

    Basics
    Background and development
    Functionality
    Primary market vs. secondary market
    Savings targets
    Trading window for 2025
    Conclusion
    At a glance
    Basics

    The greenhouse gas quota (GHG quota) is a legal requirement to reduce CO₂ emissions in the transport sector. Companies that put fossil fuels into circulation must offset a certain proportion of their emissions with more climate-friendly alternatives. This can be done through the use of biofuels, synthetic fuels or renewable electricity.

    The GHG quota was introduced to ensure a gradual reduction in emissions. Instead of a fixed admixture of biofuels, companies must now achieve a specified greenhouse gas reduction, which promotes climate-friendly alternatives.

    Further information: Federal Environment Agency

    Background and development

    The GHG quota has its origins in the biofuel quota, which was introduced in 2007 by the Federal Immission Control Act. Originally, companies had to blend a minimum proportion of biofuels, but since 2015 the focus has been on the direct reduction of CO₂ emissions.

    The legal requirements provide for a gradual increase in GHG reduction. While the reduction was initially 3.5%, it is set to rise to 25% by 2030.

    Functionality

    Mineral oil companies must provide evidence of a fixed quota of low-emission fuels or acquire corresponding GHG certificates.

    Obligated companies: Mineral oil companies, refineries, fuel importers and suppliers of alternative fuels.
    Compliance options:
    Use of biofuels
    Use of electricity-based fuels (power-to-liquid, power-to-gas)
    Offsetting electricity for electromobility
    Quota trading with overfulfilment by other companies
    Competent authority: The biofuel quota office at the main customs office in Frankfurt (Oder) checks compliance with the quota obligation.

    Companies that do not fulfill their obligation must pay a compensatory levy (e.g. € 0.60 per kg CO₂ from 2022).
    Primary market vs. secondary market

    Feature

    Primary market

    Secondary market

    Definition

    Direct purchase of GHG quotas from the competent authority.

    Trading of already purchased GHG quotas between companies or via trading platforms such as q-bility GmbH.

    Buyers

    Obligated companies (mineral oil companies, fuel suppliers).

    Companies, financial players, quota brokers.

    Pricing

    Regulated by legal requirements.

    Supply and demand determine the price.

    Place of trade

    Direct purchase via the biofuel quota office.

    Via brokers or specialized trading platforms such as q-bility GmbH.

    Purpose

    Fulfillment of the statutory reduction obligation.

    Flexibility in adjusting quotas or selling surplus certificates.
    Savings targets

    Year

    GHG reduction obligation (%)

    2022

    7,0 %

    2023

    8,0 %

    2024

    9,35 %

    2025

    10,6 %

    2026

    12,1 %

    2027

    14,6 %

    2028

    17,6 %

    2029

    21,1 %

    2030

    25,1 %



    Trading window for 2025
    Trading period: Possible all year round
    Companies can trade via brokers, direct contracts or trading platforms such as q-bility.
    Conclusion
    The GHG quota promotes the switch to renewable energies in the transport sector.
    The GHG quota is an effective means of reducing CO₂ in the transport sector.
    Quota trading allows flexibility for companies to meet their obligations.
    Electric vehicles, biofuels and synthetic fuels play a central role.
    The CO₂ reduction is to increase to 25% by 2030, with an additional obligation for aviation turbine fuels from 2026.
    At a glance
    Obliged: Mineral oil companies, fuel importers
    Price development: Annual increase until 2030
    Trading: Directly via the biofuel quota office, brokers or trading platforms such as q-bility
    Penalties: €0.60/kg CO₂ for non-compliance

    FAQ

    Frequently asked questions about the GHG quota
    What is the GHG quota?
    The GHG quota is a legal obligation for mineral oil companies to reduce CO₂ emissions in transport.
    Who is obliged to meet the GHG quota?
    Companies that market petrol and diesel fuels in Germany, including mineral oil companies, refineries and fuel importers.
    How does GHG quota trading work?

    Companies can trade unused savings or sell surplus quotas.

    What happens if the quota is not met?

    A penalty of €0.60 per kg of CO₂ will be charged.

    What are advanced biofuels?

    Fuels from sustainable sources such as residues or liquid manure, which count double towards the quota.

    Which fuels are eligible?

    Biofuels, synthetic fuels, electricity from renewable sources.

    What is the minimum limit for the quota obligation?

    Companies that sell more than 5,000 liters of fossil fuels per year are obliged to do so.

    What happens to surplus quotas?

    They can be carried over to the next year or sold.

    Where is the GHG quota regulated?

    Monitoring is carried out by the biofuel quota office at the main customs office in Frankfurt (Oder).

    How long does the GHG quota apply?

    The obligation exists at least until 2030, after which it may be adjusted by the EU.