Germany has suspended its funding programs for climate-friendly commercial vehicles and alternative propulsion systems for buses in passenger transport.
A spokesperson for the Federal Ministry of Digital and Transport (BMDV) stated that not all funding programs can continue as planned due to necessary budget consolidation and a focus on essential investments.
“This also includes the promotion of climate-friendly commercial vehicles (KsNi). Projects approved in the directive will be fully funded based on the 2024 budget. There are no funds available for a new funding call,” the spokesperson acknowledged.
Additionally, a similar statement was made regarding the funding of alternative propulsion systems for buses in passenger transport.
“It cannot continue to the same extent as before. However, funding for approved projects is guaranteed based on the 2024 budget,” acknowledged to electrive.
It’s worth mentioning that the subsidy for eTrucks lasted only two rounds of funding, and the current subsidy program for eBuses only three (for vehicle acquisition).
The ministry spokesperson indicated that the government will focus on expanding refueling and charging infrastructure for measures funded by the German Climate and Transformation Fund (KTF).
Read more: Charging infrastructure in Germany: Notable growth, but lacking coverage
“There are around 1.8 billion euros available. These investments are necessary to create conditions for the increase of climate-friendly vehicles.”
“Key projects include the Deutschlandnetz (German charging network), which will ensure a minimum of charging stations for electric vehicles in certain regions and along highways, and the development of an initial charging network for electric trucks.”
Additionally, it highlighted that federal states and local authorities offer more subsidies for climate-friendly vehicles and refueling and charging infrastructures.
Since the initial budget agreement in mid-December, it was clear that the 2024 climate budget would have to be cut by more than 12 billion euros, meaning funding for buses, battery research, charging infrastructure, and alternative propulsion commercial vehicles were up for debate.
As a result, premiums for private buyers of electric cars were canceled overnight.
A summary of the Climate and Transformation Fund published shortly after by the German government showed that subsidies for the construction of refueling and charging infrastructures will remain virtually intact until 2024.
At first, there was talk of 1.92 billion euros, then 1.85 billion euros, the spokesperson indicates.
The project fund also includes resources for charging and fueling infrastructure in the commercial vehicle sector.
However, it is also the only funding left for the truck and bus industry.
Background
In 2021, the German government established the funding program for climate-friendly commercial vehicles as one of the main levers to drive electrification in the truck sector.
However, by September 2023, it was already evident that funding for the 2024 exercise was largely blocked due to high demand.
The second round was effectively extending into the period of a possible third round.
Therefore, the budget for future funding calls had been uncertain for some time.
As part of the program, the German government disbursed 1.149 billion euros in 2022 for 292 approved applications in the first round in 2021 and 72.079 million euros in 2023 until December 8, 2023.
For 1,436 approved applications in the second round in 2022/23, the government released 20.032 million euros in 2023.
However, the figures are still not final as funds are still being distributed for approved applications.
According to government statistics, 91 eTrucks were financed in 2021 (including 50 H2 trucks and 41 BEVs), 1,133 units in 2022 (including 167 H2, 4 (PHEV), and 962 BEV trucks), and 7,119 units in 2023 (including 358 H2 trucks, 5 PHEV, and 6,756 BEV).
In the bus sector, the call for the third round of funding took place from June to September 2023.
However, until November 2023, only 23 transport companies had been given the green light for funding, while 140 transport companies had already been rejected.
The funding program was supposed to continue until 2025.
So far, the Government has approved grants under the directive for about 4,000 buses with alternative propulsion systems.
However, this does not include all vehicles approved in the third round of funding.
Additionally, the government mentions around 1,550 vehicles from previous funding programs, mainly from the 2018 directive to promote the purchase of eBuses in public transport.
