German and EU Policy Zero In on Transport Emissions

This article first appeared on the BNEF mobile app and the Bloomberg Terminal.

  • Transport is only sector where emissions rose over 1990-2017
  • Germany targets up to 10 million electric vehicles by 2030

German tailpipe emissions have proven tough to abate. Of Germany’s five major polluting sectors, transport is the only whose emissions increased over 1990-2017. But the sector’s footprint is set to plummet as Europe’s largest vehicle market electrifies.

The transition is in full swing. After a slow start, Germany has become the world’s third electric vehicle (EV) market. Policy makers upped targets in late 2019, pledging to have up to 10 million EVs on the roads by 2030. Early 2020 brought yet more promise, with cash incentives for the purchase of battery EVs raised by 50% in February.

EU-level incentives are more punitive. Coming into force this year, stricter emissions standards could have Germany’s top three automakers paying a combined 10 billion euros in fines as early as 2025. That has encouraged Volkswagen, BMW and Daimler to announce a slew of electric models. Stronger policy could give the transition an extra boost: unlike several EU countries, Germany has yet to announce plans to phase out internal combustion engines.

Clients can find the full report “2020 Germany Energy Transition Outlook” on the Terminal or on web.  

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