BEHG Update: BECV verabschiedet

Adoption of the Fuel Emissions Trading Carbon Leakage Ordinance (BECV) by the German Bundestag

The time has finally come: the Fuel Emissions Trading Carbon Leakage Regulation(BECV) comes into force today(28.07.2021). The publication already took place yesterday in the Federal Law Gazette(BGBI).

In this context, the BECV is intended to ensure that companies subject to national emissions trading(nEHS) receive financial compensation in the future ifCO2 pricing leads to a disadvantage in cross-border competition.

Amendments to the Federal Cabinet Decision of March 31, 2021

The BECV of March 31, 2021, originally adopted by the Federal Cabinet, was amended by the German Bundestag by resolution of June 24, 2021 . The first most significant changes to the enacted July 27, 2021 BECV are as follows:

Section 3 BECV § 9 – Relevant emission quantity

    • The company’s relevant emission quantity is the product of the eligible fuel quantity multiplied by the lower heating value and the fuel benchmark, plus the eligible heat quantity, if applicable, multiplied by the associated heat benchmark. A deductible of 150 tCO2 is then deducted from this quantity.
    • In contrast to the March 31, 2021 decision, the adopted BECV now provides that a reduced deductible applies to companies that have a total fossil fuel consumption of less than 10 gigawatt hours.

Section 9 BECV § 26 – Evaluation of the regulation and the aid procedure

    • It is envisaged here that the competent authority(DEHSt) will consult experts in the field of carbon leakage protection annually from 2022 onwards for the sectors/subsectors eligible for aid, in order to determine the effects ofCO2 pricing and the aid of this regulation with regard to the competitive situation of German companies continuously and at an early stage.

If you need support in all matters concerning German and European emissions trading, please do not hesitate to contact us.

We will be pleased to carry out the following activities for you in the context of SESTA:

  • Advice on the economic and procedural effects of the Fuel Emissions Trading Act on your company
  • Advice for possible switch to EU-ETS
  • Preparation and submission of the monitoring plan in accordance with §6 BEHG and continuous monitoring up to approval
  • Verifiable determination of fuel emissions and preparation of the emissions report in accordance with § 7 para. 1, 2 BEHG
  • Preparation and support of the verification of the emission report according to § 7 para. 3 BEHG
  • Submission of the verified emissions report to the competent authority (DEHSt) by 31.07 of the following year after §7 para. 1 BEHG
  • Verification to avoid double charging according to §7 para. 5 SESTA
  • Support in the establishment of accounts and account representatives in the national emissions trading registry pursuant to section 12 para. 2 BEHG for the administration of emission allowances pursuant to section 9 para. 1
  • Support in the management of their register account e.g. as one of the authorized account holders
    • Verification of transfers
    • timely retransfers of emission allowances by 30.09 for the previous year pursuant to § 8 BEHG
    • Data updates of information in the register
    • Representation of historical account movements and balances on the basis of account statements
  • Support in the purchase and sale of emission certificates
  • Support with requests for information and assistance with on-site inspections by the competent authority pursuant to § 14 BEHG
  • Identification of emission allowance price drivers and market monitoring
  • Ad hoc announcements on relevant events, political developments and legislative changes
  • Regular status and strategy meetings to strengthen decision-making capacity