Climate protection in danger: billions in funding for climate-damaging projects!

Climate protection in danger: billions in funding for climate-damaging projects!

A current analysis by the Ecological-Social Market Economy Forum (FÖS), which was prepared on behalf of Germanwatch and the Climate Alliance Germany, shows that the German federal government plans to introduce climate-damaging subsidies amounting to 9 to 15 billion euros annually. This is in connection with the existing special fund for the Climate and Transformation Fund (KTF), whose planned funds amount to 10 billion euros per year. Despite these funds supposedly invested in climate protection, climate protection organizations fear that the new subsidies in the areas of energy and transport will undermine the positive impact of the fund Econews reported.

The coalition agreement between the Union and the SPD contains measures that cement or even expand existing climate-damaging subsidies. A significant part of the new funds is aimed at the energy sector, where between 5.9 and 9.8 billion euros are budgeted, followed by the transport sector at around 1.9 billion euros. Stefanie Langkamp from the Climate Alliance Germany criticizes this development and points out that the planned increases for the commuter allowance and the funding of gas power plants will significantly reduce the impact of the special fund.

Criticism of climate-damaging subsidies

The measures planned in the transport sector are particularly controversial, including a reduction in the aviation tax and the aforementioned increase in the commuter allowance. Critics argue that these undermine incentives for environmentally friendly behavior. In the energy sector, cheaper electricity prices should also be achieved, which should be achieved by reducing electricity taxes and reducing network fees and levies. However, these measures could also stimulate increased consumption and are in contradiction to a sustainable energy policy Energy future discussed.

Anja Gebel from Germanwatch warns that the envisaged subsidies could endanger the urgently needed modernization towards a climate-neutral economy. Incentives to build up to 20 gigawatts of gas-fired power plants by 2030 are considered particularly problematic because they almost double the previous government's capacity. There is a lack of comprehensive analysis to effectively counteract a fossil lock-in effect.

Insufficient steering effect of the CO2 price

The planned measures also increase concerns about the steering effect of the CO2 price. Germany is currently using the European Union's leeway to compensate for high electricity costs for industrial applications. The planned permanent extension of electricity cost compensation and its expansion to other sectors could further weaken the incentive to reduce emissions. It is also recommended that the EU-wide CO2 border adjustment mechanism be consistently developed further in order to strengthen the goals of climate protection.

In view of these developments, environmental organizations are calling for a critical examination of all subsidies in the coalition agreement in order to clearly focus on climate-friendly subsidies. Otherwise, Germany risks failing to live up to its own climate goals and international responsibilities through false climate-damaging incentives.