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Germany Freezes 2027 CO2 Price Corridor for Fuel and Heat at €55–€65 After EU ETS-2 Delay

The move is meant to prevent a consumer price jump before the EU market for transport and buildings starts in 2028.

Overview

  • Coalition negotiators Andreas Jung (CDU) and Esra Limbacher (SPD) agreed to keep the national corridor at €55–€65 per tonne in 2027, matching the 2026 range.
  • From January 2026, certificates will be auctioned within that corridor rather than set administratively, introducing market-based pricing within defined bounds.
  • The Environment Ministry is examining required amendments to the Brennstoffemissionshandelsgesetz to extend the corridor through 2027.
  • The cap averts a shift to the higher EU industry carbon price, currently around €75–€80 per tonne, which would have pushed household fuel and heating costs higher.
  • ADAC estimates that at about €60 per tonne gasoline would cost roughly 17 cents and diesel about 19 cents more per liter in 2026, with annual costs rising around €400 for oil-heated homes and €300 for gas-heated homes; analysts warn prices could climb after 2028 when ETS‑2 takes effect.