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Germany Weighs Income-Based Subsidies to Propel Electric Vehicle Adoption and Building Renovations

UBA president Dirk Messner framed the proposal as a tool to meet Germany’s 2030 emissions reduction goal.

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Overview

  • The UBA proposes income-based purchase premiums for electric cars that offer higher grants to low-income households and set earnings caps to exclude wealthier buyers.
  • A special renovation program would target the most poorly insulated homes, directing funds to upgrades that reduce emissions and ease costs for low-income residents.
  • Messner suggests capping electricity relief to a fixed annual amount to assist low-income households without benefiting heavy consumers.
  • He also recommends state investment in hydrogen infrastructure alongside natural climate measures such as peatland restoration and forest management.
  • The federal government is reviewing the UBA’s recommendations as it finalizes plans to deploy €500 billion in special climate and transport funding.