Energy transition in Germany: transport sector slows down

Germany is making good progress with the energy transition, says the International Energy Agency.

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Opel Corsa-e charging port

The federal government should boost sales of electric cars again, says the IEA.

(Image: Franz)

2 min. read

The goal is clearly formulated: Germany wants to become climate-neutral by 2045. This requires an energy transition. Fossil fuels must be replaced. In principle, Germany is making good progress with the energy transition, reports the International Energy Agency. The transport sector is currently the problem child, it says.

Germany is making considerable progress in many areas, but hardly any on the roads, according to the IEA report published in Paris. "The transport sector needs to step up a gear in order to contribute to Germany's energy and economic turnaround," the experts write. According to the report, a large proportion of emissions are caused by road traffic. Beyond that, the report is quite positive: Despite major geopolitical challenges, Germany has recently accelerated its energy transition. If the federal government sticks to its ambitious targets, this would open up enormous economic opportunities.

According to the IEA, the government must provide more incentives to encourage consumers to switch to less environmentally harmful alternatives. Specifically, the experts mention the expansion of public transportation, more electric cars and the use of biofuels. Lower-emission vehicles could be made more attractive with tax benefits, for example.

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At the end of 2023, the German government had canceled the purchase subsidy for private e-car buyers earlier than originally planned. On average, they account for around a third of new registrations. For the larger part of the new car market, commercial registrations, the direct purchase premium was already abolished in September 2023. Tax incentives for the private use of company cars remain unchanged. Up to a gross list price of 70,000 euros, only 0.25 instead of one percent of the list price must be taxed as a non-cash benefit. This lever has helped to reduce the proportion of new cars with diesel engines from around 50 percent to around 13 percent.

(mfz)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.