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Germany has for the first time cancelled more than 500,000 emission certificates from the European Union Emissions Trading System (EU ETS) to secure the positive climate impact of its coal phase-out. environment agency UBA, cancelling the freed up allowances ensures that they cannot be used by other countries to emit more CO2, a mechanism known as the "waterbed effect." A total of 514,000 tonnes of CO2 will be withdrawn from the market.

This follows the closure of the Neurath A and Frechen power stations in 2022, in line with the country's coal exit schedule. This plan aims to completely phase out coal by 2038. Closing the plants avoided around 890,000 tonnes of CO₂ emissions the following year, and the coal phase-out is expected to lead to further reductions in emissions in the coming years. This will also result in regular national certificate cancellations in accordance with legal requirements.

The EU ETS, which puts a price on CO2 emissions that contribute to climate change, has been a key driver of decarbonisation in energy and industry for years. Recent reforms have increased the price, providing companies with greater incentives to reduce their consumption of fossil fuels.