Sat. Sep 25th, 2021

The European Commission has approved, under EU State aid rules, a €507.5 million German Federal scheme for the acquisition of climate-friendly commercial vehicles that will apply until the end of 2024.

The scheme is open to undertakings from all sectors and offers direct grants for three sub-measures:

  • (i) a premium of maximum 80% of the price difference between a carbon friendly (pure electrical, plug-in hybrid, or hydrogen/cell-fuelled) commercial vehicle and that of a comparable conventional diesel model meeting the highest applicable emission EU vehicle class (currently EURO 6/VI standards)
  • (ii) maximum of 80% of the investment costs for charging facilities for electric vehicles for use by the acquiring undertaking, which may be made available for public use; and (iii) maximum of 50% of the costs of environmental studies.

Aid will be based on a competitive bidding process. The notified measure aims at facilitating the development of certain environmentally friendly economic activities, hence the Commission assessed the measure and in particular the first and third sub-measures, under the 2014 Guidelines on State aid for environmental protection and energy (‘EEAG’). The second sub-measure was assessed in direct application of Article 107(3)(c) TFEU.

The Commission concluded that the scheme

  • (i) facilitates the development of certain economic activities and
  • (ii) it creates incentives for emission reductions in line with the relevant EU objectives, such as clean transport as well as net-zero GHG emissions by 2050.

On this basis, the Commission approved the measure under EU State aid rules. The non-confidential version of the decision will be made available under the case number SA.59352 in the State aid register on the Commission’s competition website, once any confidentiality issues have been resolved.