The German Federal Ministry of Economics and Climate Protection (BMWK) has announced a substantial increase in the budget for the environmental bonus in 2023. Originally allocated 2.1 billion euros for this purpose, the ministry will now raise the funds to at least 2.5 billion euros, according to a recent report by Tagesspiegel.
The decision comes with the aim of providing predictability and security for consumers and the economy. Already, as of 3rd July, 1.72 billion euros have been utilized, indicating that more than two-thirds of the budget has been allocated, even after the increase. It’s worth noting that the environmental bonus for commercial vehicles is set to be discontinued in September.
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The additional funds for the environmental bonus are drawn from the BMWK’s existing budget, facilitated through internal reallocations. A spokesperson from the ministry stated, “This means that a good solution has been found for the continued payment of the environmental bonus this year.”
However, subsidies, which were reduced at the beginning of the year, will remain unchanged throughout the current year. Bernd Reuther, the transport policy spokesman for the FDP parliamentary group, asserted that manufacturers have a responsibility to offer more affordable cars. Permanently subsidized prices might discourage carmakers from lowering their prices, making dialogue with manufacturers crucial.
The Green Party shares a similar perspective, advocating for a dialogue with manufacturers to ensure that not only large cars but also small and medium-sized vehicles are produced at favorable prices, as stated by Stefan Gelbhaar, their transport policy spokesman.
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In terms of numbers, during the first half of 2023, the government received 146,692 applications for the environmental bonus. The bonus is now exclusively available for purely electric vehicles since the beginning of the year. However, it is important to highlight that only EVs with a net list price below 65,000 euros are eligible, and there is no mandatory application, so the number of applications may not precisely match the number of registrations. According to KBA statistics, a total of 220,189 electric cars were newly registered in the first half of the year.
Since the inception of the environmental bonus program, BAFA has received an impressive 2,012,309 applications. Out of these, 1,206,971 were for pure electric vehicles (BEVs), 804,882 for plug-in hybrids, and 456 for fuel cell cars.
