Green Recovery: Germany unveils plans for €40bn climate spending surge

(Business Green, 4 Jun 2020) Raft of energy efficiency, green transport, and hydrogen programmes put at heart of €130bn stimulus package, as Bank of England confirms financial support for airlines.

The German government has unveiled plans for a massive €130bn stimulus package that features at least €40bn climate-related spending.

In a move that will set a bar that other government's mulling green recovery packages are likely to be measured against, Chancellor Angela Merkel's government yesterday published sweeping plans to boost electric vehicle sales, improve building energy efficiency, enhance public transport networks, develop hydrogen infrastructure, and shift the cost of renewables subsidies onto general taxation.

The focus on green measures comes alongside plans to reduce VAT from 19 per cent to 16 per cent for six months starting in July 1, increase loans for small businesses, and increase investment in R&D and digital infrastructure.  

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Business Green, 4 Jun 2020: Green Recovery: Germany unveils plans for €40bn climate spending surge