Germany is clearly lagging behind its emission reduction commitments in the so-called "non-ETS sectors" (Non - Emission Trading System - sectors), i.e. the sectors not covered by the EU ETS. An improvement is in sight due to the threat of sanctions from the EU in the form of the new Climate Protection Act (KSG).

In order to achieve the targets after all, the KSG, which came into force on 18 December 2019, has for the first time legally defined climate protection targets in Germany. The new Fuel Emissions Trading Act (BEHG) is an essential building block for achieving the climate protection targets. The BEHG entered into force on 20 December 2019 and in turn forms the legal basis for the national emissions trading system (nEHS) launched in Germany on 1 January 2021.

The nEHS is a cross-sectoral CO2 pricing system. Since January 2021, all CO2 emissions resulting from the combustion of fossil fuels have been covered. In the future, CO2 emissions from road and rail transport as well as from heat generation in the building sector and in smaller energy and industrial plants outside the EU ETS will be affected by the nETS. This means that all the sectors and areas that account for the majority of CO2 emissions outside the existing European Emissions Trading Scheme (EU ETS) will be covered.