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    EV subsidy increase in Germany green lit by EU
    Brussels has given the green light for an increase in the EV subsidy scheme, the Environmental Bonus in Germany. According to the Federal Ministry for Economic Affairs and Energy, the European Commission today announced that it has no objections to greater financial support for electric vehicles in Germany.The adjusted subsidy guideline will be published in the publication for Federal German government notifications, the Bundesanzeiger, in February and thus become effective. The new subsidy rates are to apply retroactively to all vehicles registered after 4 November 2019, according to the Ministry for Economic Affairs.The date was set retroactively for 4 November last year because this was the date that a car summit took place in the German Chancellery when politicians and companies generally agreed to increase the subsidy rates and extend the subsidy measure. Later in November, the German cabinet had also officially initiated the change.Among other things, the decision was made to increase the existing environmental bonus for purely electric cars with a netlist price of fewer than 40,000 euros from 4,000 to 6,000 euros, while 5,000 euros will still be subsidised with a netlist price of up to 65,000 euros. Plug-in hybrids will also continue to be subsidised, with the rate rising from 3,000 to 4,500 euros up to a netlist price of 40,000 euros. The only small change compared to the press release after the car summit: The subsidy for PHEVs with a netlist price between 40,000 and 65,000 euros will only increase to 3,750 euros instead of the announced 4,000 euros. This extension and the increase have been approved in principle in today’s announcement, as communicated in the most recent press release.As before, the federal government and car manufacturers will share the subsidy equally. The federal government is making 2.09 billion euros available for the extended subsidy – the environmental bonus will be paid until the end of 2025 or until the budget is exhausted. In November, the cabinet also decided on a purchase bonus for young used cars, which are to receive an environmental bonus simply and unbureaucratically in the event of a “second sale”. The ministry is still not giving further details about this scheme – such as the amount of the used car subsidy
 
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