Germany receives green light from Brussels to increase environmental bonus for EVs

The European Commission announced that it has no objection to increased funding for electric vehicles in Germany. The Federal Government can thus increase the environmental bonus for electric vehicles as announced.

The new funding rates are applicable to all vehicles that were registered after November 4, 2019.

Federal Minister of Economics Peter Altmaier said he was pleased that the European Commission gave the green light for the adjustment of the environmental bonus for electric vehicles. He believes that this is a good signal, as the new funding will start shortly. The new funding guidelines will come into force soon. Buyers will then benefit from increased subsidy rates for purely electric vehicles and plug-in hybrids.

The German government decided at the end of 2019 to extend the environmental bonus until December 31, 2025 and to increase it significantly. This extension and increase was approved in principle with this announcement.

The funding will be increased by 50% for vehicles up to a net list price of €40,000 ($43,600). For vehicles over €40,000 net list price, it increases by 25%. This applies to purely battery-electric vehicles (BEVs) as well as to plug-in hybrids (PHEVs). The industry will continue to contribute half of the environmental bonus.

The amended funding guidelines will be published in the Federal Gazette in February and will therefore come into force.