The environmental organization Greenpeace has called for the rapid reduction of climate-damaging subsidies for German industry. In this way, ten billion euros could be “released”.
Subsidies worth billions to the German industry for fossil energy are hampering the climate-neutral transformation, according to a study by the Forum for Ecological and Social Market Economy commissioned by Greenpeace. In Germany, more than 16 billion euros of taxpayer money is currently invested in climate-damaging subsidies for industry – around six times as much as in their climate-friendly conversion.
“Billions in the billions to the industry for cheaper fossil energy make it more expensive and block the climate-friendly change in the economy,” emphasizes Bastian Neuwirth, climate and energy expert at Greenpeace.
Thyssenkrupp, Linde and BASF are profiteers
But where exactly do the climate-damaging subsidies go? According to the study, around 10 billion of the 16 billion euros are for reductions in national and European emissions trading. In addition, fossil fuels would be favored in electricity production with 3.8 billion per year. Direct energy tax relief for the use of fossil fuels added up to around 2.2 billion euros.
And who benefits from the climate-damaging subsidies? According to the study, a few large companies in the particularly energy-intensive sectors of iron and steel, metals, chemicals, cement, paper and refineries are the main beneficiaries. In 2021, for example, the steel manufacturer Thyssenkrupp, the gas specialist Linde Gas and the chemical group BASF each received concessions of up to 60 million euros on electricity tax alone.
Ten billion euros for the climate-friendly transformation
According to the study, the reduction in subsidies could free up additional budget funds of at least ten billion euros by the end of 2025. They could be “invested effectively in the socio-ecological transformation of the economy and society”.
Greenpeace’s first priority is to eliminate subsidies for fossil fuels such as coal, oil and gas. As part of the G7 and in the coalition agreement, Germany has committed itself to reducing climate-damaging subsidies by 2025, explains Greenpeace expert Neuwirth. The federal government must therefore act now.