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Hamburg, 11. 11. 2020 - By phasing out ten particularly climate-damaging subsidies in the energy, transport and agricultural sectors, Germany can generate up to 46 billion euros in revenue annually.

This is the result of a new study by the "Forum Ökologisch-Soziale Marktwirtschaft" on behalf of Greenpeace. (Study "Ten climate-damaging subsidies in focus" online at: https://bit.ly/2JVu3tq).

A total of almost 100 million tonnes of CO2 equivalents would be saved annually compared to today if the subsidies under consideration were reformed. This is roughly equivalent to the annual greenhouse gas emissions from passenger car traffic in Germany. The study appears in the run-up to the publication of the tax estimate by Federal Finance Minister Olaf Scholz (SPD) announced for Thursday. It shows how the federal government can simultaneously reduce the immense new debt caused by the Corona crisis and make progress on climate protection. "Now the German government can kill two birds with one stone by reducing climate-damaging subsidies: lower CO2 emissions and relieve the budget by billions. In doing so, it eliminates significant disadvantages for climate-friendly industries and can accelerate the shift towards a sustainable, ecologically oriented economy," says Bastian Neuwirth, climate expert at Greenpeace.

A ranking examines the phase-out of ten particularly climate-damaging subsidies in Germany and sorts them according to where the most tax money and CO2 can be saved. The abolition of the tax exemption for kerosene, the withdrawal of tax concessions for electricity generation and the reduction of electricity price exemptions for industry prove to be particularly effective for climate protection and budget restructuring. In arithmetical terms, the German government could save around 73 million tonnes of CO2 equivalents and 18 billion euros of taxpayers' money each year with these measures alone. In the middle of the ranking are the VAT exemption for international flights, the distance allowance, the diesel privilege and the reduced VAT rate on animal products. "Continuing to hand out extra money for climate-damaging economic activity is completely out of step with the times. Each of these climate-damaging subsidies must be overturned as soon as possible," says Neuwirth.

Reduction of subsidies makes German 2030 climate target achievable

The gradual dismantling of the ten subsidies that are particularly harmful to the climate can shorten the Federal Government's delay in achieving its own climate targets: according to the Federal Environment Agency, Germany will emit around 71 million tonnes of CO2 equivalents too much in 2030 with the measures it has adopted so far to achieve the 2030 climate target. A rapid reduction in subsidies can therefore help to remedy this situation. At the international level, Germany and the G7 countries already committed in 2016 to reducing climate-damaging subsidies by 2025.

Study: Focus on ten climate-damaging subsidies

How cutting subsidies will advance climate protection and ease the burden on the federal budget. A ranking

Source: Greenpeace-PM from 11. 11. 2020

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DE-News, Climate protection, Mobility, Sustainable management, New books and studies, Resource efficiency, Environmental policy