BERLIN (Reuters) – Germany will provide an additional 1 billion euros ($1.2 billion) to subsidize the development and production of climate-friendly cars, two government sources told Reuters on Tuesday.
Another at least 500 million euros will be used for a scrappage scheme for older trucks to help private logistics companies as well as truck fleets that are operated by cities and municipalities, the sources told Reuters.
The planned premium would be paid when an old truck is scrapped and a brand new one is bought. Subsidies for electric or hydrogen powered trucks will be increased, according to the sources.
Suppliers can expect up to 500 million euros in guarantees to secure loans, they said.
Sources told Reuters on Monday that the environmental subsidy for electric cars will be extended until 2025.
Reporting by Markus Wacket; Writing by Kirsti Knolle; Editing by Maria Sheahan