Germany deletes 514,000 emissions certificates – progress for the climate!
Germany is deleting 514,000 emissions certificates to ensure the climate effect of phasing out coal by 2038.

Germany deletes 514,000 emissions certificates – progress for the climate!
On June 25, 2025, Germany will cause a stir in the area of climate protection. For the first time, numerous certificates will be canceled as part of European emissions trading. In total there are 514,000 tons of CO2 certificates, the deletion of which is aimed at securing the positive climate effects of the legally decided coal phase-out. The initiative is triggered by the shutdown of the Neurath A and Frechen power plant blocks in 2022, which already enabled around 890,000 tons of CO2 savings in 2023. Like that Federal Environment Ministry reported, the deletion will be implemented from September to the end of the year by reducing the regular German auction quantities.
The coal phase-out, which is to be completed by 2038, is not only a big step for Germany, but also an important issue that also has European dimensions. A study by the CLICCS Cluster of Excellence at the University of Hamburg shows that national climate protection measures are often not well coordinated with EU emissions trading. The researchers are particularly critical of the possibility of an “internal CO2 leak,” which could mean that Germany's savings are offset by emissions in other countries. If other EU states continue to operate coal-fired power plants, the intended effect of the coal phase-out could be reduced. The Cluster of Excellence CLICCS also points out that around 55% of the CO2 savings in Germany could be offset by increased emissions abroad.
The market stability reserve and its importance
The Market Stability Reserve (MSR) plays a crucial role in the entire emissions trading system. It regulates the auction volumes in European emissions trading and is intended to prevent the waterbed effect - a phenomenon in which other sectors cause higher emissions due to falling demand for emissions rights - from occurring. The push to combine the cancellation of emissions rights with the coal phase-out is the only measure that directly addresses this challenge. The coming years will show how important coordination between national and European climate protection mechanisms is. Like the study by Idw online notes, the future effectiveness of the coal phase-out could depend heavily on how well the federal government adheres to emissions rights.
In summary, it can be said that the coal phase-out is undoubtedly an important building block for German climate policy. However, it could only have the desired effects if it is incorporated into a comprehensive overall concept that also takes into account the European framework and the market mechanisms of emissions trading. The scientist Prof. Grischa Perino recommends taking more precise measures and creating investment incentives for renewable energies in order to achieve climate protection goals. This could not only sustainably improve electricity production in Germany, but also reduce dependence on dirty electricity.
Citizens still have options for action: they can actively contribute to climate protection by consuming less meat, saving electricity and other measures that fall outside the ETS. It is important to keep an eye on the dynamics of these policies, especially as the MSR may soon be deactivated and emissions trading adjustments are also imminent.