On 18 October 2024, Consultant Leonie Janisch presented on the evolution of Germany’s greenhouse gas (GHG) quota system at the Strommarkttreffen Energy Roundtable in Berlin. Ms. Janisch discussed the role of the GHG quota system in incentivizing the decarbonization of the transport sector, its regulatory framework, and the complexities of quota certificate trading.

The presentation examined recent market developments, including the sharp decline in quota prices since early 2023, driven by oversupply, biodiesel imports, and concerns over fraudulent emissions reduction certificates. Ms. Janisch also discussed regulatory responses to these challenges, ongoing uncertainty surrounding future market and price developments, and potential reforms to the German quota system. She highlighted broader lessons for quota and certificate schemes, including the importance of reliable sustainability certification, the impact of regulatory uncertainty on investment risks, and the trade-offs between market-based incentives and emissions reduction targets.