Germany adds €11 bln to environmentally harmful subsidies in 2026 – think tank
Clean Energy Wire
The German government has introduced environmentally harmful subsidies worth 11 billion euros so far this year, including a higher commuter allowance, industry electricity price support and petrol and diesel fuel rebates, according to calculations by Green Budget Germany (FÖS).
Greenpeace, which commissioned the factsheet, said the government was “wasting billions of euros” on the subsidies while the energy crisis caused by the war in Iran made clean alternatives more attractive. “This is a huge opportunity to reduce our dependence on oil and gas,” said spokesperson Lena Donat. “The German government must build on this momentum with a sensible combination of financial incentives and targeted support for those hit hardest, rather than artificially driving down the price of oil and gas.”
The German Environment Agency (UBA) said in a 2021 report that environmentally damaging subsidies reached 65 billion euros annually – a number that has since risen to more than 85 billion euros due to the energy crises, said FÖS.
Environmentally harmful financial policy measures include fossil fuel subsidies, which countries across the globe have struggled to bring down. The energy crisis has pushed fossil fuel subsidies to new highs, and NGOs accuse governments of hiding behind the need for international coordination to avoid cutting support for oil and gas at home.