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Climate Policy Database

New electric car subsidy program

Published

<p>The EV support scheme is aimed at private households purchasing or leasing newly registered electric or plug-in hybrid cars from 1 January 2026 onwards. There is a household income cap of €80,000, plus €5,000 per child up to a maximum of two children, i.e. €90,000 in total. The basic funding is capped at €3,000 for EVs, €1,500 for plug-in hybrids and battery electric cars with range extenders. For the latter two, eligibility is only possible if the limit of 60 grams of CO2 per kilometre is met, or if the electric range is at least 80 km. A holding period of 36 months must be observed. For households with an income of up to €60,000, the basic grant increases by €1,000, and for households with an income of up to €45,000, it increases by a further €1,000. An additional €500 is granted for each child, up to two.</p>

Program to promote electric cars

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

The activities of industries that transforms raw materials into finished goods through industrial processes.

This sector involves activities to move goods and people, alongside the storage of products.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

the fair distribution of risks and opportunities of climate change and the transition to a regenerative economy, cognisant in particular of disproportionate impacts on vulnerable communities and the working class

New electric car subsidy program

Policy instrument

Impacted group

Climate justice

Greenhouse gas

Economic sector

Finance