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Germany’s climate policy may be stifling battery-electric truck adoption

A broken incentive system could slow Europe’s shift to zero-emission freight. Experts warn Germany’s climate rules are undermining its own green transport goals.

In this image there is a truck in the middle. On the right side there are few people standing...
In this image there is a truck in the middle. On the right side there are few people standing beside the truck. In the background there is a wall. In front of the wall there is a table on which there is a jug,cup and covers. There are chairs around the table. On the right side there is another vehicle with the tyre.

Germany’s climate policy may be stifling battery-electric truck adoption

A recent study by the German Environment Agency (Umweltbundesamt, UBA) and research institutes, including the Fraunhofer Society, has highlighted significant issues with Germany's greenhouse gas quota (THG-Quote) system. The system currently favors hydrogen fuel cell trucks over battery-electric trucks, potentially hindering the growth of the latter in the commercial vehicle industry.

The road freight sector contributes a substantial one-third of Germany's transport emissions. To tackle this, zero-emission vehicles, especially battery-electric trucks, are vital for achieving climate neutrality in heavy-duty transport. However, the current THG-Quote system creates incentive distortions that put battery-electric trucks at a disadvantage.

The study recommends immediate adjustments to estimated annual energy consumption of vehicles and emissions factors for electricity. This is because the THG-Quote underestimates the real-world performance of heavy battery-electric trucks and overestimates their electricity supply emissions. Long-term, the study advocates for a broader overhaul of the THG-Quote's calculation methodology to account for energy efficiency benefits of battery-electric trucks. Without these changes, the growth of battery-electric trucks could slow down, despite their recent significant growth.

The study's findings underscore the need for urgent adjustments to the THG-Quote system. By rectifying these distortions, Germany can foster a fairer playing field for battery-electric trucks, supporting their growth and contributing to the country's climate goals.

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