- Take a seat, buddy. Let's dig into the juicy details of this recent kerfuffle.*
Government Proposes Fresh Subsidies Worth 15 Billion Dollars Potentially Harmful to Climate Change Efforts - Government Intends to Implement Potential €15 Billion Worth of Subsidies Harmful to Climate Change Mitigation Efforts
There's a storm brewing over estimates suggesting billions of euros will be funneled towards climate-ruining subsidies, mirroring the financial boost provided by the Climate and Transformation Fund (KTF) from the new federal special assets of approximately ten billion euros annually. The goal? Achieving climate neutrality in Germany by 2045, as stipulated by the Basic Law.
Swantje Fiedler, FOES scientist and study co-author, sets the stage, explaining, "The coalition agreement between Union and SPD is chock-full of measures that cement or even expand existing climate-damaging subsidies."
The nitty-gritty? The primary recipients of these questionable goodies are the energy sector (5.9 to 9.8 billion euros) and the transport sector (around 1.9 billion euros). The study calls out specific concerns within these sectors:
- Transport: A hike in the commuter allowance worth 1.4 billion euros and a reduction in air traffic tax amounting to 0.6 billion euros.
- Energy: The inclusion of fossil fuels in the general reduction of electricity prices (4.0 to 4.4 billion euros), as well as the promotion of new fossil gas power plants (1.9 to 5.4 billion euros).
More goodies in the bag include subsidies for lower industrial electricity prices (0.3 to 0.7 billion euros), cheaper agricultural diesel for agricultural businesses (0.2 to 0.5 billion euros), and compensations for industry for additional costs due to the new EU emissions trading for traffic and buildings (0.3 to 0.9 billion euros for industry, 0.4 to 1.1 billion euros for agriculture).
The folks from FOES mention some uncertain measures with unclear costs and consequences. When it comes to gas power plants, they point out that additional capacities might be necessary, but only with a strict path towards transitioning to cleaner gases like hydrogen.
The climate alliance's head of politics, Stefanie Langkamp, voiced her concerns, "The special assets are supposed to spur additional investments in climate protection, but new climate-damaging subsidies such as the increased commuter allowance or the promotion of additional gas power plants cancel out their effect."
Anja Gebel of Germanwatch adds her two cents, critiquing the strategic blunder of subsidizing fossil businesses while neglecting those promoting climate-friendly transformation and sustainable business models. "Amid the scarcity of public funds and mounting risks from the climate crisis, it's incredibly irresponsible to perpetuate fossil business models," she stated.
Savory Milkshakes for Your Mind
- The German Coalition Agreement between the Union (CDU/CSU) and the SPD sparks heated debates over climate-damaging subsidies, particularly in the energy and transport sectors.
- The agreement faces criticism for not offering substantial measures to meet the 2030 emissions reduction targets, effectively maintaining the status quo.
- Incentives for building new gas-fired power plants face opposition, as they perpetuate the use of fossil fuels and contribute to greenhouse gas emissions.
- The Council of Experts on Climate Change has emphasized the need for more robust policies in the transport sector to meet emissions targets effectively.
- Foreign carbon credits, although intended to aid companies in reducing residual emissions economically, have raised concerns about relying on external credits rather than focusing on domestic emissions reductions.
- The alarming projection of billions of euros allocated towards climate-wrecking subsidies raises concerns, given the financial backing of the Climate and Transformation Fund (KTF).
- Scientists, such as Swantje Fiedler from FOES, have emphasized that the coalition agreement between the Union and SPD contains measures that either reinforce or expand existing climate-damaging subsidies.
- The energy and transport sectors, notably, receives questionable subsidies worth up to 15 billion euros, with criticisms toward the increases in the commuter allowance and the promotion of new gas power plants.
