An allowance for commuters that can be deducted from taxable income is among the subsidies listed as harmful for the climate. Photo: Wettengel/CLEW.
The transport sector receives by far the biggest share out of all of Germany's government subsidies that are harmful to the climate, according to a report commissioned by the economy ministry. In their coalition agreement, the government parties had said they would tackle such subsidies – a topic which gained prominence in the wake of Germany's budget crisis. In light of the report's findings, environmental groups have renewed calls for the subsidies worth billions of euros to be cut.
Out of a total 35.8 billion euros of government funds going into measures that have a negative effect on the climate, the transport sector received just under 25 billion in 2020, showed a report by six research institutes including the Öko-Institut and consultancy Prognos.
The report, which was commissioned by the economy ministry (BMWK), for the first time quantified the effect of government subsidies on greenhouse gases in the country, both positive and negative. It took the reference year 2020, and projected the effects on emissions for the years 2023 to 2030.
