Following the abrupt end of Germany’s environmental bonus for electric car purchases in late 2023, the federal government now plans a new funding programme to promote EV adoption. As Finance Minister Lars Klingbeil said last Thursday, three billion euros from the Climate and Transformation Fund and the EU Social Fund will be allocated to specifically support households with low and middle incomes in switching to zero-emission vehicles. What Klingbeil did not initially specify was whether the scheme would again be a purchase incentive or, for example, a social leasing model like the one in France – something his Social Democratic Party (SPD) had been advocating in recent months.
According to various media reports, it now appears that the coalition of the CDU/CSU and SPD opted for a purchase bonus of up to 4,000 euros per vehicle. The programme is set to start on 1 January 2026, with the Federal Office for Economic Affairs and Export Control (BAFA) once again responsible for processing applications and disbursing funds.
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