new German government will revamp incentives for electric cars | Economic news

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BERLIN (AP) — Germany’s new government announced Monday that it is extending the country’s current incentive payments for buyers of electric and hybrid cars by another year, but then plans to impose tougher requirements for vehicles to benefit from the aid.

The Ministry of Economy and Climate which was set up when Germany’s new government took office last week said it would only make payments from 2023 for “electric vehicles that clearly have a positive effect on climate protection”.

Compliance with this requirement will be based, in part, on a minimum distance that cars can travel on electricity.

For next year, the current system will still apply, making buyers of electric-only cars eligible for incentives of up to 9,000 euros (around $10,200) and eligible buyers of plug-in hybrids up to 6 750 euros.

Robert Habeck, Germany’s new economy and climate minister, said the government was trying to ensure “continuity” while it worked on a new system.

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“We will become more ambitious with support in the future, in order to further stimulate electromobility and strengthen climate protection,” he said.

Habeck is co-leader of the green environmentalist party. He is also vice-chancellor in the tripartite government of centre-left Chancellor Olaf Scholz, who took office on Wednesday.

“ideally” in 2030.

Follow all AP stories on climate change issues at https://apnews.com/hub/Climate.

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