Published: August 18th, 2024,
Last updated: May 28th, 2025

In 2020, subsidies or tax breaks totaling at least 35.8 billion euros drove up greenhouse gas emissions in Germany. If these incentives remain in place, they would result in an additional 156 million tons of CO2 emissions between 2023 and 2030. On the other hand, other state subsidies will ensure that emissions fall by around 250 million tons over the same period. This is the result of a comprehensive study commissioned by the Federal Ministry for Economic Affairs and Climate Action (BMWK), which, for the first time, provides a detailed overview of how government stimulus programs simultaneously drive and curb German emissions.