Electric mobility

For the environment, and for the future!

At the electricity pump

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Electric vehicles make it possible for us to enjoy mobility that is both environment-friendly and fit for the future. For this reason, the German government attaches a high level of significance to the promotion of electric mobility.

Electric mobility holds tremendous promise and potential, for several reasons:

• Electric vehicles help to protect the climate and the environment (by reducing emissions of CO2 and other pollutants).
• Electric mobility is a crucial future-oriented industry that can secure up to one million jobs, particularly in small- and medium-sized companies.
• The use of electric vehicles will reduce our dependence on oil-based fuels.
• Electricity used to power vehicles will be drawn from renewable energy sources. According to recent studies, only 0.3% more electricity per year will have to be generated in order to put one million electric vehicles on Germany's roads. At the same time, the batteries of electric vehicles create new opportunities for storing renewable energy, and this will contribute to the long-term stability of power grids.

That's why the German government places a high priority on pressing forward with the development of electric mobility. Germany has a clear target: by 2020, we want to have one million electric vehicles on our country's streets.

This target is clearly stated in our National Development Plan for Electric Mobility, which the government adopted in 2009. Initial research and development projects as well as projects in model regions have been launched as part of the German government's second stimulus package, which allocated 500 million euros for this purpose for the period 2009-2011. The Economics Ministry's share of this total - 119 million euros - has been disbursed for research projects focusing on transportation, information and communication technology, and energy. These projects will be evaluated in 2011.

To ensure cohesive and targeted action, the German government has pooled its competences and expertise in the field of electric mobility. Electric mobility policy is headed jointly by the Federal Ministry of Economics and Technology and the Federal Ministry of Transport, Building and Urban Affairs. The Joint Unit for Electric Mobility - which serves as the government's single point of contact for business and science, and which coordinates the government's activities in the field of electric mobility - has been up and running since 1 February 2010.

On 3 May 2010, the government convened a high-level meeting with leaders from industry, science, and other key stakeholders. Key outcomes included the creation of a National Platform for Electric Mobility (NPE) and the adoption of a Joint Declaration.

The NPE brings together within a single forum all of the key stakeholders along this new value chain. As such, it is the only multi-stakeholder platform of its kind in the world.

Representatives from industry, science and government are cooperating closely within the framework of the NPE to develop concrete steps for achieving two central goals. First, Germany aims to become a leading market in the electric mobility sector, with at least one million electric vehicles on our country's roads by 2020. Second, Germany wants to become a leading provider in the electric mobility sector as well. Germany is one of the world's top exporters. By developing and marketing highly innovative products, we aim to attain a top position in the global electric mobility market as well.

The NPE is comprised of a Steering Committee chaired by Dr. Henning Kagermann, State Secretary Dr. Bernhard Heitzer (Economics Ministry) and State Secretary Rainer Bomba (Transport Ministry) as well as seven working groups with approximately 20 members each. The NPE's first interim report, which provides an overview of the state-of-the-art of electric mobility in Germany, was submitted in November 2010.

The NPE published its second report in May 2011. This report outlines the economic opportunities that Germany can take advantage of in the electric mobility sector and describes the efforts that need to be undertaken to make Germany a lead market and provider in this field. According to the NPE, if all stakeholders join forces to advance electric mobility in Germany, this sector has the potential to create 30,000 additional jobs nation-wide by 2020.

The NPE also argues that, in order to grasp the opportunities presented by electric mobility, Germany needs to target comprehensive efforts toward three key priorities: research and development; education and training for both skilled workers and managers; and a strategic, globally oriented approach to standardisation.

The report recommends that, rather than developing a large number of "model regions", Germany should focus on a few selected "showcase regions". It also calls for the creation of monetary and non-monetary purchasing incentives, such as rebates on purchases of electric vehicles and special depreciation rules for electric vehicles that are used for commercial purposes.

Germany's goal of becoming a leading market for electric mobility is to be realised in three stages:

• Stage 1: market preparation and readiness, with a primary focus on research and development (by 2014)

• Stage 2: market roll-out and expansion, as markets for vehicles and infrastructure are built up (by 2017)

• Stage 3: an incipient, measurable mass market (by 2020)

On 18 May 2011, the German government unveiled its Electric Mobility Programme, which lays out the tasks that are to be completed by the end of the current legislative term. The programme can also be understood as the government's response to the NPE reports.

We are now in the process of implementing the programme, which assigns two primary tasks to the government:

• First, the government has to set the right policy environment for fostering electric mobility. We intend to do this mainly by setting up structures that nurture competition and thereby unleash dynamic and innovative economic forces. In contrast, the development and production of components, cars and infrastructure is the private sector's responsibility.
• Second, the government will play a key role in promoting research and development. To this end, an additional one billion euros - to be financed by the Energy and Climate Fund - will be allocated for electric mobility R&D projects during the remainder of the current legislative period.

To ensure a cohesive approach to these R&D activities, the German government will expand the federal agency that provides advisory services on funding programmes. This agency will then coordinate all government-funded research on electric mobility. The agency's revamped advisory services will specifically aim to serve the needs of small and medium-sized businesses, which is a particular priority for the Economics Ministry. Furthermore, as recommended by the NPE, the government will introduce two new innovative R&D instruments - "showcases" and "flagship projects" - which will be crucial for facilitating the development and market penetration of electric vehicles and the necessary supporting infrastructure.

Electric mobility showcases will offer platforms for the large-scale demonstration and testing of innovative developments in the field of electric mobility. These showcase projects will pick up on the work and findings of the "model regions" currently being funded by the German government for the period 2009-2011.

Flagship projects will be targeted specifically toward advancing the various technologies that are crucial for the development of electric mobility. In particular, they will aim to spark innovation processes across multiple sectors and industries. The flagship projects will be limited in number and will focus on clear thematic priorities, such as battery technology, drive technology, and information and communication technology.

The German government agrees with the NPE that incentives need to be created to stimulate the demand for electric vehicles. These include, for example, special parking spaces for electric vehicles as well as the permission to use electric vehicles in bus lanes. The government will also establish monetary incentives by introducing a 10-year motor vehicle tax exemption for all low-carbon vehicles (with emissions under 50g/km). We also plan to eliminate any tax disadvantages accruing to electric vehicles under taxation rules on official and company cars. Furthermore, the federal government aims to purchase an increasing number of electric vehicles.

However, in adherence to market principles and the need to maintain fair competition, the government will not offer rebates for purchases of electric vehicles. Ultimately, markets and competition will be the best drivers of innovation and progress in the field of electric mobility.

Within the framework of intergovernmental consultations in June 2011, the Chinese and German governments signed a memorandum of understanding to create a strategic partnership in the field of electric mobility. The central objectives of this partnership will be to intensify cooperation in the area standardisation and to strengthen collaboration between research centres, companies and local governments.

We will achieve our goal of making Germany a leading market and provider for electric mobility only if industry, science and government join forces and make their respective contributions to these important efforts.