SOLID FINANCES
A lot of money is spent on fossil energies
Organising a climate-friendly energy supply for the economy is a daunting endeavour. And yet, or maybe because of that, many countries across the world are still directly or indirectly subsidising fossil energies.
Text: Antonia Sagast
Global energy policy
Direct and indirect fossil fuel subsidies in 2020:
This accounts for roughly 6.8 percent of global GDP, and according to IMF estimates that figure might rise to 7.4 percent of global GDP by 2025.
SOURCE: IMF
Subsidies for fossil and renewable energies
The EU subsidises renewables more strongly than fossil energies. One of the countries bringing up the rear is Finland. Germany is doing well compared to its neighbours France and Poland. (in percent of GDP)
SOURCE : ECA, 2022
Government aid for natural gas, crude oil and electricity is designed to keep energy prices low
The countries cannot dial back inefficient subsidies for fossil energy sources as planned, among others, because governments want to keep energy prices for private households and businesses low.
SOURCE: OECD/IEA
Energy policy in Germany
All energy sources are subsidised, irrespective of their sustainability performance. That is because energy policy almost always has other goals to consider, too, e.g. jobs in the German coal industry and an unbiased approach to different technologies or the military usage of nuclear power in other countries. To this day, the bulk of the money has been paid to prop up coal production and coal-fired power generation: EUR 337 bn (in real terms). (EUR bn)
SOURCE: SCIENTIFIC SERVICES OF THE BUNDESTAG, 2022/STATISTA
Unrealistic prices
This was the cost of producing 1 kWh of electricity in 2021. The figure on the right includes the socio-economic costs.
SOURCE: SCIENTIFIC SERVICES OF THE BUNDESTAG, 2022/STATISTA
Antonia Sagast has been writing about energy and economic policy as a journalist for many years.
Antonia Sagast has been writing about energy and economic policy as a journalist for many years.
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