Changes to nEHS Trading – Transition to the Auction Mechanism
In 2026, the National Emissions Trading System (nEHS) entered a new phase: Following the previous fixed-price phase, an auction mechanism is now in effect—and with this, the nEHS is evolving from an administratively set pricing system into a market-based instrument. This paves the way for the transition to the European Emissions Trading System for fuels (EU ETS 2).
March 2026
While nEHS certificates (nEZ) were sold at fixed, legally mandated prices from 2021 to 2025, the certificates for 2026 will be sold for the first time through auctions on the European Energy Exchange (EEX). These auctions take place within a legally defined price corridor that sets a minimum and a maximum price. The actual winning bid price is determined by supply and demand in the respective auction process.
For obligated companies—particularly fuel distributors—this step represents a fundamental change. In the future, the procurement of emission allowances will no longer be fully predictable based on a fixed price but will, for the first time, be subject to market mechanisms.
Access to nEHS Auctions via Vattenfall
As in the previous nEHS fixed-price phase, Vattenfall will continue to act as an intermediary under the new auction model. Customers receive structured access to the nEHS auctions without having to be admitted to the exchange themselves. Vattenfall is responsible for the operational processing of bids on the EEX, ensures the delivery of the allocated allowances, and handles the subsequent settlement. This allows customers to continue participating in the nEHS efficiently and in compliance with regulations, while we manage the complexity of market admission and exchange processes.
A key advantage of the intermediary model lies in the high level of financial security, as Vattenfall is 100 percent owned by the Swedish state. This state-owned structure provides customers with additional security in the settlement of certificate transactions and payment flows in the auction environment. This can be an important stabilizing factor, particularly during the transition to a market-based pricing mechanism.
Use Vattenfall as an Intermediary
We would be happy to meet with you in person to explain in detail the changes in nEHS trading, the auction mechanism starting in 2026, and the options for intermediary access. Please feel free to contact us at any time if you have questions about your individual procurement strategy or would like to work with us to prepare for the transition to the new market phase.
Do you have questions about the national emissions trading system? Feel free to contact us!