Selling CO2 Certificates: How Private Individuals Can Profit from Emission Trading

Since 2022, a new source of income has emerged for electric car owners: the sale of CO2 certificates. Thanks to the law for the further development of the greenhouse gas reduction quota (THG), it's now possible to financially benefit from certified emission reductions. But what exactly are these CO2 certificates, and how does their trading work?

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1. What are CO2 Certificates?

CO2 certificates represent saved emissions, certified by the Federal Environment Agency, and can be sold on the open market. They are particularly interesting for electric car owners as electric vehicles do not produce local emissions. Renewable energies, such as from photovoltaic systems, also contribute to CO2 savings.

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• Definition and Purpose: A CO2 certificate is a tradable document that grants the right to emit a certain amount of greenhouse gases (usually one ton of CO2). These certificates are part of a market-based approach aimed at reducing emissions and promoting climate protection.
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• Functionality: Companies that emit greenhouse gases must possess a corresponding number of certificates to offset their emissions. The total number of available certificates is limited to reduce overall emissions.
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• Tradability: CO2 certificates can be traded on the open market. Companies that emit less than allowed can sell their excess certificates to other firms that produce more emissions.
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• Incentive to Reduce: The trading of CO2 certificates creates a financial incentive for companies to reduce their emissions. Efficient and environmentally friendly companies benefit financially, as they need fewer certificates and can sell their excess ones.
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• Significance for Electric Cars: For owners of electric vehicles, the opportunity to sell CO2 certificates arises, as electric cars are locally emission-free and thus contribute to the reduction of greenhouse gases.
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• Federal Environment Agency and Certification: The Federal Environment Agency plays a key role in certifying saved emissions, especially for electric car owners, who can have their saved greenhouse gases certified as THG quota.
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2. Is it Worthwhile for Electric Car Owners?

Owners of electric vehicles can get their saved greenhouse gases certified as a THG quota and sell them to companies that are obligated to reduce their emissions. The maximum THG premium for an electric car can reach €422, while the penalty for companies is €600 per ton of CO₂.

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What are the Requirements?

• It's important that the electric car has not received a premium in the current calendar year.
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• For the application and sale of certificates, the owner registered in the vehicle registration document is relevant.
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Is a Sale through the Federal Environment Agency Possible?

• Although it is theoretically possible to apply for and sell CO2 certificates directly through the Federal Environment Agency, this is difficult due to overload and bureaucratic hurdles. A more efficient method is to sell through specialized THG quota providers like emobility.energy, which offer higher premiums and simplified processing.

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3. Private vs. Company Cars

When selling CO2 certificates, it's important to consider whether it's a private or a company vehicle. For company cars, the sale of the certificates must be taxed, while revenues for private electric car owners have been tax-free since 2022. What else should you pay attention to?

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1. Registration and Authorization:

For private vehicles: The sale of CO2 certificates can be carried out by the person registered as the owner in the vehicle registration document.
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For company vehicles: If the vehicle is registered to a company or firm, authorization from the company or fleet management may be required to sell the certificates.
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2. Scope and Process:

Private vehicle owners can handle the sale of certificates relatively easily, as they typically act as individuals.
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For company vehicles, more complex processes are often required, taking into account corporate policies and tax considerations.
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3. Larger Fleets and Special Conditions:

Companies with multiple electric vehicles can often receive special conditions from THG quota providers.
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This can include increased premiums per vehicle or simplified administrative processes.

Leasing Vehicles:

The sale of CO2 certificates is possible for both private and company leasing vehicles.
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The key factor here is who is defined as the beneficiary of the THG premium in the leasing contract – either the lessee or the lessor.

Annual Certification:

Regardless of whether it is a private or company vehicle, the certification of saved CO2 emissions per vehicle is only possible once a year.
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A vehicle that has already been certified cannot receive another premium in the same calendar year.
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4. Highest Premiums in Comparison & the THG Quota

There are many providers for the sale of CO2 certificates. These providers offer electric vehicle owners the opportunity to monetize their greenhouse gas savings.

• These THG quota providers act as intermediaries between electric vehicle owners and companies that need CO2 certificates to offset their emissions.
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• These providers handle the entire process of certification and sale of the saved emissions, thereby minimizing the effort for individuals.
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• Choosing the right provider can affect the amount of the premiums and the speed of the transaction. The offers from these providers vary in terms of commission amounts, payout conditions, and customer service.
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• It is important to compare the offers of different THG quota providers to find the best value for money.
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5. Disadvantages of Selling Certificates

Despite the financial benefits, there are criticisms of selling CO2 certificates. A major point of criticism is the potential greenwashing by companies that merely buy certificates instead of investing in real climate protection measures. Additionally, the credibility of the system is questioned due to the simplified calculation of saved emissions, which does not consider the individual power source of each electric vehicle.
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Conclusion

The trade of CO2 certificates offers electric car owners an attractive way to financially benefit from their environmentally friendly vehicles. Despite some criticisms, it represents an important step towards more sustainable mobility and provides incentives for further development of e-mobility.



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FAQs

Can everyone sell CO2 certificates?

‍In theory, yes, but the trade is dominated by a few experts. It's difficult to find buyers for individual certificates.

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Can owners of photovoltaic (PV) systems sell CO2 certificates?

‍Unfortunately, there is no certification for PV systems, so there is no possibility to sell certificates.

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Who buys CO2 certificates?

‍Mainly oil companies and other fuel-selling companies to offset their greenhouse gas emissions.

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How long are CO2 certificates valid?

‍A CO2 certificate is indefinitely valid and represents the amount of greenhouse gas saved in a certain period.