Germany’s Fuel Emissions Trading Act (BEHG), in force since 2021, established a national Emissions Trading System (nEHS) for heating, transport, and, from 2024, the waste sector, pricing CO2 emissions from fossil fuels outside the EU ETS. Implemented through the Fuel Emissions Trading Ordinance (BEHV), the system moves from a fixed price of 55 €/tCO2 in 2025 to auctioning from 2026 with a price corridor of 55–65 €/tCO2, and prepares the transition into EU ETS 2 from 2027, while also expanding coverage to fuels such as Jet A-1 and strengthening climate investment obligations for firms receiving carbon leakage compensation.