Rising CO2 Charges to Increase Heating and Fuel Costs in 2026Wed 31st Dec, 2025At the start of the new year, households and motorists across Germany will encounter higher costs for heating and fuel, driven by an increase in the national carbon dioxide (CO2) price. The CO2 pricing mechanism, which has been in effect for several years, requires businesses that supply fuels such as natural gas, heating oil, petrol, and diesel to purchase emissions certificates. These added costs are typically passed on to end consumers, contributing to the anticipated price increases at fuel stations and for home heating bills. Consumer organizations have expressed concerns that the CO2 price may settle at the upper end of the new corridor. The policy is designed, however, to ensure that the transition towards lower emissions remains efficient and that market forces play a significant role in determining the final cost of CO2 emissions.

Source: The Munich Eye December 31, 2025 15:01 UTC