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New German coalition to reform electric vehicle subsidies

GERMANY’S new government said today it is toughening requirements for electric car subsidies to ensure they encourage “electric vehicles that demonstrably have a positive climate-protection effect.”

Current rules give buyers of electric-only cars incentives of up to €9,000 (£7,650) and buyers of plug-in hybrids up to €6,750 (£5,750). They will remain in force at least until 2023.

But Economy and Climate Minister Robert Habeck — co-leader of the Greens, who are now in coalition government — said Berlin “wanted to be more ambitious with support in the future.”

The new government wants to have at least 15 million fully electric cars on the road by 2030.

It also aims to step up efforts against climate change by expanding the use of renewable energy and bringing Germany's exit from coal-fired power forward from 2038, “ideally” to 2030.

Today Chancellor Olaf Scholaz announced €60 billion (£51bn) in spending earmarked for combatting climate change and investing in infrastructure.


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