EU ETS II: CO2 costs
From 2027, the European Union (EU) will introduce Emissions Trading System 2 (ETS 2). This system will put a price on CO₂ emissions from fossil fuels – i.e. natural gas, heating oil and coal. This will gradually make fossil fuel heating more expensive across Europe, while renewable alternatives become more economically attractive.
ETS II is part of the European Fit for 55 package and is intended to ensure that the EU becomes climate neutral by 2050. For many homeowners and energy suppliers, this means that CO₂ costs will become the new reality.
Which fuels are covered by ETS 2?
The following fuels are covered by ETS 2:
- Natural gas
- Heating oil
- Coal
- Liquefied petroleum gas (LPG)
- Petrol & diesel (in the transport sector)
Electricity (still covered by EU ETS 1) and renewable energies such as wood pellets, solar heat, geothermal energy and heat pumps are not affected.
Who exactly is affected by ETS 2?
ETS 2 is not aimed directly at private households, but at those who place fossil fuels on the market: Gas suppliers, heating oil dealers and other fuel suppliers must purchase a certificate for every tonne of CO₂ placed on the market. They pass on these additional costs to consumers via the energy price.
The result: heating with fossil fuels will become noticeably more expensive – year after year.
CLIMATE-FRIENDLY
Pellets burn CO₂-neutrally, i.e. when they burn, they release exactly the same amount of CO₂ that the tree previously absorbed. Pellets actively avoid emissions from fossil sources.
ECONOMIC
The price of pellets has been significantly lower than that of oil and gas for years. Due to the CO₂ pricing of fossil fuels, they will become more expensive in the coming years.
SECURE SUPPLY
As a leading producer with four pellet plants in Germany, we offer our customers optimum security of supply. Thanks to regional raw materials, we are independent of geopolitical risks.
SUSTAINABLE
100% of our wood comes from sustainable forestry. We use residual materials from sawmills and timber harvesting as raw materials. We are certified in accordance with the Sustainable Biomass Program (SBP).
HIGH QUALITY
Pellets can be used efficiently and with low emissions. Unlike wood chips and logs, pellets are characterized by consistently high quality and easy handling.
EFFICIENT
Modern pellet boilers are highly efficient and offer maximum ease of use. Established and proven solutions ensure a risk-free changeover.
RELIABLE
Wood pellets can be stored for an extremely long time without any loss of quality. Regardless of whether the sun is shining or the wind is blowing: with your pellet tank, you are safely stocked up - with pellets as a reliable energy source.
HOME
When using wood pellets, the added value remains in the region. This strengthens the local economy, makes it independent of crises and secures employment and prosperity.
Price development of wood pellets:
What is the cost of pellets compared to other fuels?
Comparing the cost of wood pellets per kWh with other fuels such as heating oil or natural gas, the balance is consistently positive: over the last 10 years (2013-2023), the price advantage of pellets over heating oil was 24.23%. Compared to natural gas, the fuel costs of pellets were even 27.15% lower.
For combustion plants with a thermal output of more than 20 MW, the European Emissions Trading System (EU-ETS I) applies.