In 2023, Germany's tax expenditure on fossil fuels for electricity generation stood at $1.36 billion. The forecast reveals a consistent annual decline in expenditures, with values projected to drop from $1.24 billion in 2024 to $0.77596 billion by 2028. The year-on-year percentage variations are approximately -9.7% for 2025, -10.7% for 2026, -11.1% for 2027, and -12.7% for 2028. Over this five-year period, the compound annual growth rate (CAGR) is projected to be approximately -12.3%.
Future trends to monitor include Germany's transition to renewable energy sources, potential policy changes to accelerate decarbonization, and technological advancements that could further influence tax expenditures on fossil fuels.
