Germans Can Now Sell CO2 Quotas: A New Way to Cut Emissions
The greenhouse gas reduction quota (THG quota) is a legal tool designed to decrease CO2 emissions in Germany's transport sector. It has been in place since 2015 and is currently set to run until 2030, with potential political changes influencing its future. Private individuals can now sell their THG quota once a year, a privilege previously reserved for energy suppliers and autotraders.
The THG quota obliges fuel suppliers to lower the greenhouse gas emissions of their fuels. This can be achieved by selling emission rights to mineral oil companies, who can then use these rights to meet their reduction targets. The THG premium, derived from the sale of these rights, is intended to incentivize the switch to low-emission drives and pressure fuel providers to reduce fossil CO2 emissions.
Private individuals can sell their THG quota, which is currently tax-free up to 255.99 euros if classified as 'other income'. Self-employed individuals, however, must tax the entire revenue as operating income. Eligible vehicles for selling the THG quota include pure electric vehicles, e-scooters, light electric commercial vehicles, and electric buses, with leased vehicles' eligibility depending on contractual agreements. The sale process involves certification, platform choice, marketing, and payment, with providers bundling certificates from many customers and selling them to quota-bound companies. In August 2025, serious offers from providers are expected to range between 80 and 125 euros per year.
The THG quota is a significant instrument in Germany's efforts to reduce CO2 emissions in the transport sector. Its extension beyond 2030 and the continued involvement of private individuals, including Toyota owners, in its market are crucial for its success. As the sale of THG quotas becomes more common, it is expected to play an increasingly important role in promoting low-emission drives and reducing fossil CO2 emissions.
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