Germany Suspends Some Green Transport Funding, Maintains Charging Infrastructure Subsidies
The German government has announced changes to its funding programs for climate-friendly transportation. While some initiatives will continue, others have been suspended due to budget consolidation and a focus on essential investments.
The government will maintain subsidies for the construction of refueling and charging infrastructures until 2024, with around 1.8 billion euros available for charging infrastructure investments, including the Deutschlandnetz and an initial charging network for electric trucks. This commitment aims to expand Germany's charging infrastructure.
However, the funding program for climate-friendly commercial vehicles and alternative propulsion systems for buses in passenger transport has been suspended. The KsNi program, established in 2021, had funded 91 eTrucks in its first year, 1,133 units in 2022, and 7,119 units in 2023. Despite its success, the program will not receive new funds. Similarly, the subsidy for eBuses will only last for three rounds of funding for vehicle acquisition.
The government's decision to cancel premiums for private buyers of electric cars overnight has also raised eyebrows. Several German states and cities, such as Baden-Württemberg and Bayern, continue to offer additional subsidies for climate-friendly vehicles and charging infrastructure.
While the government remains committed to expanding charging infrastructure, the suspension of funding for climate-friendly commercial vehicles and alternative propulsion systems for buses may hinder the transition to greener transportation. Funding for approved projects is guaranteed based on the 2024 budget, but the future of these programs remains uncertain.
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