The study gives an overview on environmentally harmful subsidies and, by comparing costs and benefits of these, outlines the need to act and options to guide the process of reducing subsidies, For that matter, we analyse existing research and data on environmentally harmful subsidies in Germany under a political cost-benefit-perspective. Various national and international examples for processes of structural change will be studied to identify the framework conditions under which a successful reduction is possible. In this regard, we will also discuss the role of the European and international political arena in reducing subsidies that are distorting trade and competition.

Based on this, we will outline options and show perspectives for managing the necessary change processes.