Greens Want to Slash €12 Billion in Environmentally Harmful Subsidies

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Picture source: Reuters

The Green Party has proposed slashing subsidies for environmentally harmful products – such as heavy-duty vehicles, diesel and airplane fuel – by €12 billion ($12.7 billion) a year, according to a position paper obtained by Handelsblatt.

The funds would be used to subsidize research in climate friendly innovations. Environmentally harmful products and activities receive €50 billion in subsidies every year in Germany, according to the federal UBA environment agency.

“We don’t want to subsidize behavior that harms the environment anymore,” the Green Party position paper said.

Germany is in the midst of an ambitious state-backed transition from fossil fuels to green energy, which has weighed heavily on utilities such as E.ON and RWE.

“Green economic policy expects something from companies,” the position papers said, but the party also offers a framework for “reliable planning and provides incentives for investment.”

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