Federal Environment Agency: Reduce fossil fuel subsidies
The President of the Federal Environment Agency (UBA), Dirk Messner, has called for the reduction of climate-damaging subsidies following the budget ruling by the Federal Constitutional Court. He told the German Press Agency on Thursday that answers must now be found quickly as to how the ecological transformation will be financed if the money from the climate fund is removed. "Additional financial leeway can be gained if the German government quickly reduces environmentally and climate-damaging subsidies." According to UBA calculations, these amounted to at least 65.4 billion euros in 2018.
Messner pointed out that the G7 states - i.e. the seven leading industrialized countries - had already agreed in May 2016 to end climate-damaging subsidies for oil, gas and coal by 2025. "A roadmap could now be drawn up for phasing out environmentally harmful subsidies in Germany, as has already been agreed internationally," said the UBA President. "A prime example of this is the energy tax concession for diesel, which promotes the sale of diesel vehicles and hinders the switch to electromobility." In the same way, the company car privilege, which has so far mainly promoted the sale of large combustion cars and benefited upper income groups, should also be abolished.
On Wednesday, the Federal Constitutional Court ruled that the use of coronavirus loans for climate projects was unconstitutional. The ruling tears a 60 billion euro hole in the financing of the German government's climate projects.
The German government could consider reducing household subsidies that contribute to environmental harm, as noted by Dirk Messner, to free up financial resources for the ecological transformation. This alignment with the G7's commitment to phase out climate-damaging subsidies by 2025 could also involve examining the fuel-specific energy tax concession for diesel vehicles, which impacts household vehicle choices. In the Bundestag, discussions on reforming financial incentives could help shape a more sustainable future for households and the environment.
Source: www.dpa.com
