The total support on all fossil fuels for producers in Germany is forecasted to decline from $2.74 billion in 2024 to $2.0 billion in 2028, representing a year-on-year decrease of approximately 7.4% on average. This trend has been consistent with an overall Compound Annual Growth Rate (CAGR) of about -7.3% over five years, indicating a significant reduction from prior levels, as the support stood notably higher in 2023.
Future trends to watch for include:
- Potential impact of carbon neutrality goals and environmental policies on fossil fuel support.
- Shifts in energy prices that might influence government subsidy strategies.
- Technology advancements in renewable energy potentially accelerating the decline in fossil fuel reliance.