Germany Ceases Subsidies for Green Vehicles

Germany Ceases Subsidies for Green Vehicles

The Federal Ministry for Digital and Transport (BMDV) in Germany has made an announcement regarding the cessation of its financing programs for green commercial vehicles and buses. Despite this, the ministry has made assurances that projects which have already been approved will continue to receive funds. This information was disclosed by a spokesperson for the BMDV in a response to an inquiry by Electrive. The spokesperson stated that due to the need for budget consolidation and a shift in focus towards essential investments, not all financing programs will be able to be continued to the extent originally planned.

The spokesperson added that this includes financing for the promotion of climate-friendly commercial vehicles, otherwise known as KsNi. Projects that have been approved in accordance with the guidelines will be fully funded, drawing from the budget planned for 2024. However, the spokesperson also revealed that there are no resources set aside for a new funding call.

In a statement similar to the one regarding commercial vehicles, the spokesperson stated that the financing of alternative driving systems for buses used in passenger transport will not continue at the same level as before. Despite this, they assured that approved projects will still receive financing, based on the 2024 budget.

It was noted that the electric truck subsidy only lasted for two funding cycles, while the electric bus subsidy program lasted for three, specifically for vehicle procurement. The spokesperson expressed that the government’s main focus will now be on expanding the refueling and charging infrastructure, an initiative financed by the German Climate and Transformation Fund (KTF).

They stated, “Around 1.8 billion euros have been made available for this initiative. These funds are crucial in creating the necessary conditions to encourage the diffusion of climate-friendly vehicles. Major projects that will be implemented using these funds include the Deutschlandnetz [rete di ricarica tedesca], which promises to ensure a minimum number of charging stations for electric vehicles in certain regions and along major highways. This also includes the development of the first charging network specifically for electric trucks.” The spokesperson also emphasized that there are additional subsidies provided by the Landes and local authorities for climate-friendly vehicles and for the expansion of refueling and charging infrastructure.