A leading climate and energy institute is urging the German government to reconsider a planned increase to the commuter allowance, arguing it would disproportionately benefit higher-income households and hinder climate goals. Manfred Fischedick, President of the Wuppertal Institute, cautioned that raising the allowance from 30 to 38 cents per kilometer for the first 20 kilometers of a commute would result in approximately 1.3 billion euros in additional state expenditure annually and exacerbate social inequalities.
Fischedick highlighted the broader issue of environmentally damaging subsidies, including tax exemptions for aviation fuel, preferential treatment for diesel and company car perks, stating they create negative incentives. He argued that increasing the commuter allowance, as outlined in the current coalition agreement, would be counterproductive to efforts towards climate neutrality.
Concerns over such subsidies were echoed by other political parties. Andreas Audretsch, a deputy parliamentary group leader for the Green party, criticized the government for expanding environmentally harmful subsidies instead of reducing them. Meanwhile, Ines Schwerdtner, co-leader of the Left party, advocated for the abolition of company car privileges as a means of funding a national ticket for public transportation.
The debate comes as Germany continues to struggle to meet its carbon emission targets in the transport sector. In 2024, permitted emissions of 143 million tonnes of CO2 equivalent were exceeded by 18 million tonnes, with an overall emission reduction of just 1.4 percent compared to the previous year. This shortfall underscores the challenges in transitioning towards a more sustainable transport system and the need for a critical review of existing fiscal policies.
