In principle, the design of the nETS is based on the proven EU ETS. This means that after a transitional phase, national emissions trading will also be based on the market-based "cap and trade" system in the future, i.e. an emissions trading system with absolute quantity limits.
The annual emission targets set by the EU Climate Change Regulation for the non-ETS sectors also form the upper limits (cap) for the German nEHS. This means that with the annual increase in the reduction obligation under the EU Climate Change Regulation, the quantities of emission allowances in the nETS will also decrease accordingly.
In the nEHS, it is the distributors of fuels who must surrender emission allowances (nEZ) to the German Emissions Trading Authority (DEHSt) on 30 September of each year in the amount of the emissions of the fuels placed on the market in the previous year. The costs for acquiring the necessary certificates can be passed on in full by the distributors to their customers.
The first trading period of the nEHS extends from 01.01.2021 to 31.12.2030 and is thus oriented to the fourth trading period of the EU ETS in terms of duration. It is not yet foreseeable to what extent the EU ETS 2 planned at EU level for the buildings and transport sectors will influence the current design of the nETS.