Forecast: Tax Expenditure on Coal for Fossil Fuel Production in Germany

The forecast for tax expenditure on coal for fossil fuel production in Germany indicates a steady decline from 2024 to 2028. The expenditure starts at 47.75 million US dollars in 2024 and falls to 34.75 million US dollars by 2028. While data for 2023 isn't explicitly provided, the annual decrease suggests a consistent effort to reduce coal dependency, with a notable year-on-year reduction in expenditures. The five-year compound annual growth rate (CAGR) signifies an approximate decrease of about 7% per annum, reflecting persistent policy measures against fossil fuel investments.

Future trends to watch for include:

  • A continued shift towards renewable energy sources, possibly affecting coal-related tax benefits.
  • Policy changes in the EU that could further impact subsidies and tax expenditures related to fossil fuels.
  • Technological advancements enhancing the efficiency of alternative energy sources, impacting fossil fuel reliance.

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