Germans Can Now Sell Greenhouse Gas Quota, Boosting EV Switch
Private individuals in Germany can now sell their greenhouse gas reduction quota (THG quota), previously only available to energy suppliers. This change, effective since 2022, aims to incentivize the switch to low-emission vehicles and reduce CO2 emissions in the transport sector.
The THG quota, a legally prescribed instrument, requires companies to reduce the CO2 emissions of the fuels they bring to market by a specified percentage. Private individuals can sell their quota once a year, with the sale involving certification, platform choice, marketing, and payment. Eligible vehicles range from pure electric vehicles to electric buses.
The quota increases annually, starting at seven percent in 2022 and reaching 25 percent by 2030. As of August 2025, serious providers offer fixed-price ranges between €80 and €125 per year for the THG allowance, with flexible revenue-sharing models potentially exceeding this. Companies obligated to reduce their CO2 emissions, such as mineral oil companies, can buy these THG certificates to fulfill their greenhouse gas reduction obligations. The legal basis for the THG quota currently applies until at least 2030, subject to potential political changes.
Self-employed individuals must tax the entire proceeds from the sale of the CO2 quota as business income. For private individuals, the CO2 premium up to an amount of 255.99 euros is tax-free if classified as 'other income', with the threshold increasing to 410 euros if there are no other additional income. Used cars are also eligible for the quota transfer, provided it hasn't been used in the current year.
The sale of the THG quota offers private electric vehicle owners an additional incentive to switch to low-emission vehicles. With the quota increasing annually and companies buying the saved emissions to avoid legal penalties, the system is expected to put pressure on fuel providers to reduce fossil CO2 emissions. The sale of the THG quota, however, comes with tax implications for self-employed individuals.
