Sven Schulze Demands Softening of EU Emission Trading System

Sven Schulze Demands Softening of EU Emission Trading System

Sachsen-Anhalt’s Minister-President Sven Schulze, a member of the CDU, has called for a softening of the European climate policy. “We need relief from the European emission‑trading system (ETS)” he told the NTV news site on Friday. “The EU is pulling CO₂ certificates out of the market, driving up the price of the remaining permits and thereby lifting gas prices. We can’t keep this up for much longer”.

In the European Emissions Trading System for industry and energy (ETS‑1), a cap is set for CO₂ emissions. For each tonne of CO₂ equivalent – roughly the amount released when burning gas – companies in the covered sectors must purchase permits. These permits have been divided over several years, so the total supply, and thus the potential for CO₂ emissions, falls each year. When companies reduce their demand more slowly than the supply contracts, permit prices rise. Heating gas for buildings is not yet covered by ETS‑1; a second trading system (ETS‑2) for the building and transport sectors will not come into effect until 2028.

Schulze voiced doubts about the 2045 climate target. “I support meeting the climate goals, but aiming for 90 percent net‑zero by 2040 is too tight. If we also set a 2045 target, that would be difficult enough. Otherwise we risk jeopardising our prosperity” he said.

Following the 2021 environmental ruling by Germany’s Federal Constitutional Court, the country must not only fix an exit date but also ensure that it does not exceed a specific CO₂ budget during the interim period. The court notes that reduction responsibilities should not be excessively pushed into the future in order to preserve intertemporal freedom.

The governor also urged measures to help motorists if fuel prices remain persistently high. “What’s happening in Germany feels like a scam. The gasoline and diesel we’re filling up with today couldn’t have cost that much to produce; the crude was bought long before this crisis” he explained. “If this trend continues for an extended period, we need a response mechanism from Berlin”.

In Sachsen‑Anhalt, many commuters travel up to 100 kilometres to work. “Those commuters would already benefit from cheaper gasoline and diesel” Schulze added.