A growing sentiment within Germany’s governing coalition is calling for a reassessment of the current policy mandating a complete phase-out of internal combustion engine (ICE) vehicles by 2035. Olaf Lies, Minister-President of Lower Saxony, has publicly advocated for a more flexible approach, arguing that the existing deadline is unrealistic given current technological and infrastructural limitations.
In a recently circulated policy paper, obtained and reported on by Politico, Lies proposes that plug-in hybrid vehicles and vehicles equipped with range extenders be permitted for registration beyond 2035. These technologies are viewed as vital bridging solutions during the transition to full electrification.
The document, developed in collaboration with Anke Rehlinger, Minister-President of Saarland, outlines six key principles and a range of supporting measures. A core component of Lies’ proposal is the allowance of ICE vehicles to operate using synthetic and biogenic fuels, often referred to as e-fuels. These fuels, when blended with conventional fuels, offer a significantly reduced carbon footprint. The plan calls for gradually increasing the proportion of these fuels in the vehicle fuel mix, with annual monitoring to ensure consistent progress. Adjustments to mineral oil tax rates are suggested as a potential mechanism for incentivizing the adoption of these lower-emission fuels.
Lies emphasizes the necessity for a unified German position on this issue to be presented at the European Union level. He stresses the importance of advocating for a more gradual and adaptable approach to fleet emission standards within the EU, rather than the current strict prohibition.
Beyond fuel considerations, Lies highlights the critical need for accelerated investment in charging infrastructure, accessible and affordable battery technology and lower electricity prices to bolster the wider adoption of electric vehicles. He further proposes exploring social leasing programs and reducing the value-added tax (VAT) on both new and used electric vehicles from 19% to 7% to improve accessibility and affordability. These factors, he believes, should form the foundation for a more pragmatic and achievable roadmap towards climate-neutral mobility.