Greenhouse gas effects of subsidies in Germany
Federal Ministry for Economic Affairs and Climate Protection (BMWK)
2024
Öko-Institut, ifeu, IREES, FhG ISI, GWS
There is a lot of controversy about which state subsidies are useful. But what do the numbers say? The “Quantification of the greenhouse gas effect of subsidies in Germany” report shows which measures are climate-friendly and which damage the climate.
The Federal Ministry for Economic Affairs and Climate Protection (BMWK) commissioned a scientific consortium to take stock of the existing 130 measures listed in the Federal Subsidy Report. In addition to Prognos, Fraunhofer ISI, GWS, IFEU, IREES and the Öko-Institut participated in this project.
The expert report serves as a data point for the client’s decision-making process concerning future subsidies. In addition to the results of the expert report, they have a range of other information sources at their disposal.
The report’s goal was to render the greenhouse gas effect of subsidies more transparent. The reference year is 2020, which was analysed with a view to the expected effect in the years from 2023 to 2030.
Each measure was analysed individually by one of the participating institutes and assessed according to whether it was climate-friendly or harmful. It was not the intention to formulate options for reform.
The expert report shows: many subsidies are already climate-friendly, but there are also many climate-damaging subsidies and benefits.
The Prognos team examined 23 measures in the transport, buildings and energy sectors. In total, 130 measures were considered.
The highest levels of greenhouse gas emissions in the transport sector are caused by:
The Federal Funding for Energy Efficiency in the Economy and the Federal Funding for Efficient Buildings show a particularly emission-reducing effect.
In counterfactual scenarios, our researchers calculated the greenhouse gas emissions that would arise if the respective subsidies did not exist.
Last update: 19 August 2024
List of the 23 measures analysed by Prognos and their GHG impact
A comprehensive overview of all 130 measures analysed can be found from page 30 of the study (PDF, Öko-Institut website)
E-mail: presse@prognos.com | Phone: +49 30 58 70 89 118
Senior Project Manager
Principal
Prognos is preparing a scenario analysis for dena and the BMWK to calculate the demand for and potential of negative emissions in Germany.
Prognos and its partners support the preparation of the German government's 2025 to 2027 greenhouse gas projection reports.
Prognos supported an energy supplier with integrating sustainability requirements into the sales department’s product decision process.
On behalf of the Federal Ministry for Economic Affairs and Climate Action, we calculated the investments that will be required to restructure capital stock in the course of the envisaged net zero transition.
On behalf of the WWF Germany, using 32 case studies, we calculated the cost effectiveness of refurbishment measures for detached houses and apartment buildings.
Which carbon accounting requirements will businesses have to be aware of in the future and what, specifically, will present the greatest challenge?
For the Council of Experts on Climate Change we conducted an expert appraisal to review the Federal Environment Agency’s greenhouse gas projection data.
Primary industry will have to achieve massive reductions in CO2 output by 2045. The Office of Technology Assessment commissioned Prognos with demonstrating the opportunities for a successful transformation.
What level of investment will be required to ensure a climate-neutral transport sector by 2045? We calculated this on behalf of Agora Verkehrswende, based on three scenarios.
Energy consumption for industry, buildings and transport has remained relatively stable for the last 20 years. A study for the German Industry Initiative for Energy Efficiency (DENEFF) shows how policy can use efficiency measures to counteract this stagnation.
Prognos is one of the oldest economic research centres in Europe. Founded at the University of Basel, Prognos experts have been conducting research for a wide range of clients from the public and private sectors since 1959 – politically independent, scientifically sound.