The GHG reduction rate - How companies can monetize their vehicle fleet

The GHG quota as a market-based instrument for reducing greenhouse gases

The German Federal Immission Control Act(BImSchG) obliges companies that put fossil fuels into circulation to annually reduce the greenhouse gases caused by the fuel they sell. To meet these greenhouse gas reduction targets, obligated companies have various options, such as using biofuels or green hydrogen. In order to support the development of charging infrastructure for electrically powered vehicles, since the beginning of 2022, obligated companies have also been able to credit a lump sum of 2,000 kWh per electric vehicle as a further option to meet their reduction targets.

Many players are involved in GHG quota trading, inno2fleet streamlines processes

The Federal Environment Agency (UBA) and the main customs office are responsible for handling quota trading. The UBA checks and certifies the tradable electricity quantities for the applicants. For quota trading, sellers and buyers of the GHG quota subject to quota then conclude a quota trading contract. They submit this contract to the main customs office. The main customs office checks and monitors the traded GHG quota quantities as well as the quota fulfillment obligation of the petroleum companies. Quota trading takes place through bilateral trading relationships, which is why it is attractive for GHG quota sellers to hire a service provider that is well-connected in GHG quota trading to broker the GHG quota volumes to the quota-obligated companies, as this service provider offers better conditions thanks to higher volumes.

Many vehicles, many quotas, a lot of revenue but also a lot of work

From 1.1.2022, owners of electric vehicles and operators of charging points are entitled to sell the associated GHG quotas. The GHG quota is calculated based on energy units of fossil fuels whose circulation is to be mitigated. These energy units are expressed in kWh and vehicles of different classes are assessed with flat rates. Fully electric cars are defined as 2,000 kWh per vehicle, and the GHG ratio of public charging points is measured pointedly and sold per kWh. E-fleet operators can benefit from the high number of vehicles as well as from (public) charging points. Holders of e-vehicles only need the vehicle registration document (front and back) and the e-vehicle GHG quota transfer contract to sell the GHG quota rights in order to benefit from the premiums. Those who own many vehicles have a corresponding amount of work to do to properly register the documents. Effort that inno2fleet, as an end-to-end provider for phottenelectrification, relieves its customers of.

Influence on sustainability reporting

Many companies ask themselves whether trading in GHG quotas is equivalent to the classic offsetting of operational emissions. This is explicitly not the case, which is why sustainability reporting should not declare the GHG quota accordingly. Even if a company did not have its own corporate fleet before 2022 and no direct emissions from operational mobility were previously generated, the company can benefit from a newly introduced e-fleet under GHG quota trading. GHG quota trading does not affect the de facto emissions of this e-fleet in the calendar year. In sustainability reporting, it is therefore recommended to record the company's own emissions from operational mobility in accordance with GRI 305 and only to additionally indicate that the company has participated in GHG quota trading with a defined number of electric vehicles.

Is it too late to sell the 2022 GHG quota?

The GHG quota of a calendar year can be realized until the end of March of the following year. At the same time, the GHG quota can be redistributed every year, while the level of revenues is expected to be higher than in 2022. Contact us, inno2fleet will help you to benefit from the GHG quota.

IN CHARGE TO CHANGE!