Germany

Economic stimulus package

Executive
Passed in 2020
Germany's 130 billion euro stimulus package deals with climate change action in several ways.

First, it ensures federal support to the financing of local public transport. To this end, the federal government will increase the regionalisation funds once by 2.5 billion euros this year. The federal government will also increase its share from the current 40% from January 1, 2021 to 50% for costs from the GDR's supplementary pension systems.

In order to promote sustainable mobility, the future package includes several measures for the mobility transition. It aims to accompany the structural change in the automotive industry and to help build sustainable value chains. These include the following changes:
- As an “innovation bonus”, the federal government will double its share of the environmental bonus until December 31, 2021. When purchasing an electric vehicle with a list price of up to 40,000 euros, the federal funding increases from 3,000 to 6,000 euros.
- An additional 2.5 billion euros will be invested in the expansion of modern and secure charging station infrastructure and the promotion of research and development in the field of electromobility and battery cell production.
- Future investments by manufacturers and suppliers in the automotive industry will be supported with a bonus program in 2020 and 2021 with 1 billion euros.
- The car tax will be more geared to CO2 emissions from 2021, making clean cars cheaper to pay than high-emission models.
- Electromobility is to be promoted with limited fleet exchange programs. This affects vehicles for social services in city traffic as well as electric utility vehicles for craftsmen and small and medium-sized companies. There will also be a doubling of the purchase subsidy until 2021, tax exemption for electric vehicles, obligations for petrol stations to offer charging points, support for automakers conditioned to green investments,
- The federal government is investing in a bus and truck fleet modernization program that supports alternative drives. The funding for e-buses and their charging infrastructure will be increased until the end of 2021.
- In order to promote cleaner trucks in heavy goods traffic, the federal government is campaigning for a Europe-wide exchange program for heavy commercial vehicles with grants for the exchange of old Euro 3 to 5 vehicles for new Euro VI vehicles.
- Deutsche Bahn receives additional equity of 5 billion euros from the federal government. In this way, it can also invest in the modernization, expansion and electrification of the rail network, as well as in the rail system, given the loss of revenue due to corona.
- Extra funding to the aviation industry is conditioned to making new planes more fuel-savvy.
- a fund for shipping will also require improvements in fuel efficiency.

The federal government is further launching an investment package to promote hydrogen technology. This should also lay the foundation for new export technologies and pave the way for greenhouse gas neutrality in heavy goods traffic in industry.

The federal government is granting a subsidy to lower the EEG surcharge so that it will be 6.5 ct / kwh in 2021 and 6.0 ct / kwh in 2022.

The cap for the expansion of photovoltaics will be abolished and the expansion target for offshore wind energy will be raised from 15 GW to 20 GW.

The CO2 building renovation program will be increased by EUR 1 billion to EUR 2.5 billion in 2020 and 2021.

Small municipalities are granted additional funding through the national climate protection initiative.

The levy on electricity bills to fund renewables will be cut from €0.068/kWh, to €0.065/kWh in 2021 and €0.06/kWh in 2022.

Additional funds from the federal state will be allocated to the protection of forests.

from the Grantham Research Institute
from the Grantham Research Institute
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