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GHG REDUCTION QUOTA: A NEW FUNDING INSTRUMENT FOR E-MOBILITY IN GERMANY

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As a funding instrument, the GHG reduction quota may incentivise the switch to e mobility.

E-car at charging station

© Pixabay

As of 2022, every electrically powered vehicle in Germany is assigned a greenhouse gas (GHG) reduction quota. This figure represents the amount of CO2 from fuel consumption that is saved by switching from a vehicle with an internal combustion engine to an electric vehicle. On the other side of the equation is the petroleum industry. From 2022, it must offset 7 per cent of the CO2 emissions caused by the fuel it sells. As a result, there is a new supply source with tailor-made demand. This economic redistribution has the effect of promoting e-mobility. In the 38th Ordinance on the Federal Immission Control Act (BImSchV), which came into force in 2022, lawmakers in Germany established an additional support mechanism for e-mobility with the GHG reduction quota. This funding is not linked to other subsidies, such as the purchase grant offered by the German Federal Office for Economic Affairs and Export Control (BAFA). Providers of pooling solutions, like CO2-quote.de, act as intermediaries, bundling the GHG reduction quotas and selling them on behalf of private individuals, fleet operators and charging point operators. Cash payment of the quota proceeds is just one of many options. For many companies, the GHG reduction quota also represents a completely new way of retaining customers in the form of a bonus system. Fleet operators can expect to benefit from a self-reinforcing system in which they cooperate with the pooling solution provider to invest the proceeds from their vehicles in new public charging points without incurring extra costs. This in turn paves the way for new electric vehicles. The practical benefit for registered owners of electric cars is an annual payment, which is another argument in favour of switching.