In 2023, Germany's tax expenditure on fossil fuels for general services was at 14.1 million USD. Starting from 2024, there is a forecasted decline in expenditure, decreasing to 13.86 million USD. The declining trend continues through 2028, with forecasts showing a consistent reduction, reaching 13.0 million USD. Observing year-over-year changes, this decline represents an estimated annual percentage decrease of approximately 0.64%.
Over a five-year span, the compound annual growth rate (CAGR) indicates an overall negative trend in tax expenditure on fossil fuels, reinforcing Germany's shift towards reduced reliance on fossil fuels in line with their environmental policies.
Key trends to monitor in the future include Germany's transition towards renewable energy sources. Government initiatives aiming for carbon neutrality could further decrease fossil fuel dependency and, subsequently, related tax expenditures.
