Germany axes subsidies for electric trucks and buses

The German government has terminated two subsidy schemes for electric trucks and buses, the transport ministry (BMDV) told specialist publication electrive. The cancellation applies to two programmes for climate-friendly commercial vehicles and for alternative drive systems for buses in passenger transport, according to a spokeswoman of the BMDV. A key reason behind the decision is the end of several state support schemes following a budget crisis at the end of the year. Not all funding programmes could be continued as planned due to the necessary budget consolidation and the focus on essential investments, the BMDV spokeswoman told electrive. Projects already approved under the support scheme will still be financed, but new applications won't be considered, according to the ministry. 

The federal government established the truck funding programme in 2021 as one of the main levers for the transition to climate-friendly mobility in the freight sector. The BMDV's "Directive on the promotion of alternative drive systems for buses in passenger transport" also started in 2021 and was supposed to end in 2025. At the end of last year, the German government already abruptly ended its subsidy programme for electric cars after agreeing on savings to overcome the budget crisis, jeopardising the government’s aim to get at least 15 million electric vehicles on German roads by 2030. The BMDV spokesperson highlighted the ministry’s focus on the expansion of the refuelling and charging infrastructure using Germany’s designated climate action budget – the Energy and Climate Fund (KTF). "Around 1.8 billion euros are available for this. These investments are necessary to create the conditions for the ramp-up of climate-friendly vehicles,” the spokeswoman said.