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In order to achieve the climate targets, the German Fuel Emissions Trading Act (Brennstoffemissionshandelsgesetz – BEHG) was promulgated on December 19th 2019 as part of the German Climate Action Programm 2030. The German Fuel Emissions Trading Act establishes an Emission Trading System in the sectors heating and transport, starting in 2021.
In December 2019 the government promised the Federal Council of Germany to raise the price path for the first years. The respective amendment of the BEHG passed parliamentary procedure in late 2020 and was subsequently promulgated on November 9th 2020.