Germany’s Green Stimulus for a Sustainable Transport Sector

Geography: Europe
Sector: Mobility

Read More: Green Stimulus Germany

The German Government announced a new EUR 130 billion economic stimulus package on June 03, 2020. It includes several strong measures for stimulating a green recovery and fostering a low-carbon economy in Germany. While some critics emphasize that the new package still misses consistent incorporation of ambitious climate targets that would ensure a full alignment of Germany’s economy with targets of the EU Green Deal, there is a clear boost for e-mobility and significant funding for realizing a more sustainable transport sector. Some of the proposed instruments will be directly implemented by the German Government, while others depend on new legislative acts that must be discussed and approved by the German Parliament.

Stimulus measures for a sustainable transport sector include:

  • Up to 100% increase of the state-funded buyer’s premium for electric vehicles until the end of 2021 (plug-in hybrid electric vehicles and hybrid and fully electric second-hand vehicles also benefit from this premium under certain conditions, while combustion engines are excluded).
  • EUR 2.5 billion for expanding the charging infrastructure for electric vehicles and for fostering further e-mobility research and development such as for battery solutions.
  • EUR 7 billion to support research and development of hydrogen technology in Germany, as well as EUR 2 billion to support the construction of German-made hydrogen production facilities abroad.
  • A EUR 2 billion support program for investments in clean technologies in the automotive industry (car manufacturers and suppliers).
  • A EUR 2.5 billion public transport support program for municipalities.
  • EUR 1 billion for modern shipping and EUR 1 billion for modern aviation solutions.