Germany has unveiled a comprehensive incentive package to boost electric vehicle (EV) adoption and accelerate the country’s climate and infrastructure goals. Under the federal government’s new “Responsibility for Germany” programme, a range of economic, fiscal, and structural reforms will be rolled out starting as early as July 2025. A key feature is the introduction of special depreciation schemes for EVs, aimed at stimulating private and corporate investment in sustainable mobility.

Key Highlights for Alternative Fuels and EVs

• ✅Special Depreciation for EVs: The government will introduce an “investment booster” through accelerated depreciation (degressive AfA) for equipment investments, including electric vehicles, to stimulate fleet renewal and corporate EV adoption.
• ✅Tax Relief Measures: The plan includes reductions in corporate tax burdens and the introduction of measures that lower energy and electricity costs, making EV use and charging more cost-competitive.
• ✅Support for SMEs and Start-Ups: New funding lines, low-interest loans, and improved access to infrastructure financing will support innovation in sectors like electromobility and charging infrastructure.
• ✅Infrastructure Expansion: The legislative package includes accelerated permitting processes for renewable energy, hydrogen infrastructure, and grid expansions, laying the groundwork for future-proof charging networks.
• ✅CO₂ Storage and Hard-to-Abate Sectors: While primarily focused on industrial decarbonisation, the revision of the Carbon Dioxide Storage Act creates opportunities for integrated solutions that may support zero-emission freight transport in the long term.

Broader Context

Germany’s move comes amid rising pressure to meet EU climate targets and sharpen its competitive edge in the transition to green mobility. The programme acknowledges that battery electric vehicles (BEVs) and plug-in hybrids (PHEVs) are critical pillars for achieving national emissions reductions, alongside renewable fuels, hydrogen, and CO₂ reduction technologies.

Although Germany ended its consumer EV purchase subsidies in 2023, the new measures signal a pivot towards supporting the supply side: encouraging companies to renew fleets, supporting local EV manufacturing, and upgrading charging and grid infrastructure.

The government has also committed to simplifying regulatory frameworks, particularly for permitting and environmental approval processes. This will help accelerate the rollout of high-power charging stations, including megawatt charging systems for heavy-duty vehicles—an essential step for decarbonising long-haul freight and meeting Alternative Fuels Infrastructure Regulation (AFIR) targets.

What’s Next

The legislation will be tabled before the summer recess, with the goal of making it visible by mid-year that “Germany is moving forward,” as outlined in the government’s plan. The first tangible financial mechanisms, including the special depreciation for EVs, are expected to go live in July 2025.

EAFO will continue to monitor the development and provide updated data on the impact of these measures on EV registrations, fleet electrification, and infrastructure deployment.

Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.