In 2023, Germany's tax expenditure on fossil fuels was at 5.43 billion USD. The forecast for the period 2024 to 2028 indicates a steady annual decrease, dropping from 5.08 billion USD in 2024 to 3.71 billion USD in 2028. The year-on-year variation is -6.9% on average. Over the forecasted period, the compound annual growth rate (CAGR) is -7.24%, reflecting a consistent decline.

Future trends to watch:

Increased investment in renewable energy sources may accelerate the reduction in fossil fuel tax expenditures.
Government policy changes, such as carbon pricing or subsidies removal, could further impact tax expenditure trends.
Technological advancements in energy efficiency and storage could reshape demand dynamics.