In 2023, the tax expenditure on coal in Germany stood at $1.52 billion. The forecast from 2024 projects significant year-on-year declines: 10.95% in 2025, 11.48% in 2026, 13.06% in 2027, and 14.89% in 2028. Over the forecast period, the compound annual growth rate (CAGR) is anticipated to be a negative 13.16%, reflecting a steady reduction in tax expenditure on coal.
Future trends to watch include potential policy shifts aimed at accelerating Germany's transition towards renewable energy, which could further decrease coal-based expenditures. Additionally, monitoring carbon pricing mechanisms and their impact on coal usage will provide insights into potential further declines in this sector.
