Germany has pledged around €20 billion (£18 billion) to the green technology sector, as part of the country's rescue package to combat the economic shock following the pandemic.
According to the European clean transport campaign group Transport & Environment (T&E), the German package will provide €2.2 billion (£1.95 billion) to incentivise electric cars (EVs) and car fleets.
The full list of investments from the Germany authorities is quite expansive:
- Some €7 billion (£6.22 billion) will be funnelled into hydrogen investments;
- €2.5 billion (£2.22 billion) for EV recharging infrastructure and battery manufacturing;
- €1.2 billion (£1.06 billion) for clean buses and trucks;
- €2 billion for energy-efficient houses; and,
- €5 billion for the German railway company Deutsche Bahn.
Furthermore, EVs alone are set to be allocated a €6,000 state-funded premium, despite the rising pressure from car manufacturers to bring in scrappage schemes for diesel and petrol cars.
Stef Cornelis, Germany director of T&E, said: “After France now Germany is pointing the way forward with massive investments in electric cars, recharging infrastructure and railways. This is exactly what's needed to support jobs and help us emerge stronger and greener from the COVID crisis. The plan isn't perfect but it should be a wake-up call for the Commission and other European countries ahead of the all-important decision on the EU's €750 billion recovery and resilience fund.”
It is hoped the new funding will provide opportunities for asset finance lenders during the economic recovery following the pandemic.
