According to the report published by the International Institute for Sustainable Development (IISD) in 2021, Germany spent approximately 5.4 billion euros (5,97 billion dollars) on fossil fuel subsidies in 2019, including direct and indirect subsidies. According to the data provided by the OECD Inventory of Support Measures for Fossil Fuels: Country Notes, the German government’s support for fossil fuels in 2021 was 6.65 billion euros (7.35 billion dollars).
In 2019, Germany was a prominent fossil fuel supply chain sponsor, investing 37.5 billion euros a year in bolstering energy industries, such as combustion motor vehicles, coal, flying, shipping, residential fuel utilization, and petrol and diesel. By comparison, there has been less support for fossil fuels in other major EU nations. The UK spends 19 billion euros, Italy 18.3 billion euros, France 17.5 billion euros, and Spain as it were 3.4 billion euros a year.
An essential subsidy area in Germany is directed toward oil and gas companies. For example, in 2019, 3.2 billion euros was used to help promote the production and use of oil and gas despite the negative environmental impact. In addition to direct subsidies for producers, there are other subsidies. For example, tax breaks for homeowners who install oil and gas heating systems. These consumer-focused subsidies help keep energy prices low. However, they also help promote the use of fossil fuels over other cleaner energy sources. In 2019, Germany also provided around 400 million euros to import oil, supporting the global oil industry.
Despite the funds spent on fossil fuels in Germany in the last few years, there have been efforts to limit these subsidies, promoting the usage of other clearer energies. For example, Germany seeks to have all its current energy obtained through solar and wind power by 2035 at a cost far less than what it now spends on fossil fuels. One of the reasons why Germany will make this transition is due to problems that emerged from the war between Russia and Ukraine that affected Germany’s energy supply.
There also are continuous endeavors to dispose of fossil fuel appropriations at the worldwide level. The G20 incorporates Germany and has committed to phasing out “wasteful” fossil fuel appropriations by 2025. This commitment empowers nations worldwide to decrease their support for the fossil fuel industry and move towards cleaner energy sources.
This Post was submitted by Climate Scorecard Germany Country Manager Yohana Fontenla
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