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German COVID Stimulus Package, June 2020

In the face of the COVID-19 pandemic the transportation sector will face difficulties remaining profitable across the world. In early June of 2020 the German government contributed 2.5 billion euros to the public transportation sector as part of the 130 billion euros stimulus package approved. The Association of German Transport Companies (VDV) calculated that, during the corona pandemic, local public transport will lose around 5 billion euros by the end of the year^[1]. The stimulus package also invested 7 billion euros towards hydrogen technology and infrastructure. The money will construct industrial production plants to allow hydrogen technology to be used on an industrial scale. The German government hopes to create hydrogen refueling stations to promote hydrogen use in heavy goods vehicles^[2]. Such stations would primarily target trucks.

Other Transportation Sector Investments Include:

100% increase of state funded buyers premium for electric vehicles and hybrids until the end of 2021. Naturally excluding combustion vehicles.
5 billion euro for expanding electric vehicle charging infrastructure, fostering e-mobility, and research/development of battery solutions.
2 billion euros to support clean technologies in the automobile industry
1 billion euro for modern shipping
1 billion euro for aviation solutions
2 billion euro is supporting the construction of German made hydrogen production facilities abroad.

Future of German Railways

Germany has been laying the foundation for a sustainable railway long before the corona pandemic struck. In January of 2020 Germany invested a record 86 billion euros into modernizing their railway system. 62 billion of this investment will come from the German government with the remaining 24 billion coming from the state Deutsche Bahn rail company. This investment will contribute to over 2,000 kilometers or rails and expand Deutsche Bahn’s fleet of ICE 4, electric powered trains, from 39 to 137^[3]^[4].

The “Rail Transport Master Plan” (RTMP) was signed by the Federal Transport Minister Andreas Scheuer, the Federal Commissioner of Railways Enak Frelmann, and a representative of the railway industry on June 30th of 2020. The RTMP aims to double the amount of passengers by 2030, introduce more innovative vehicles and technologies, increase noise and climate protection, and introduce the German clock among other things. The RTMP is a pact that focuses how money invested in German railways will be spent^[5]^[6]. The RTMP will see 3 billion euro spent a year on track expansion and construction. Andreas Scheuer claims that the railway is the first form of transport that can be made climate neutral. Such investments are expected to create 100,000 jobs at state rail operator Deutsche Bahn alone⁵. Since 2018 Deutsche Bahn has been a worldwide leader in transporting goods with green electricity powered trains^[7]. Deutsche Bahn is also responsible for the world's first carbon neutral station in Kerpen-Horrem with sustainable features incorporated into the infrastructure^[8]^[9]. Deutsche Bahn also released the world's first hydrogen powered train back in 2018 with hopes to use the technology in 2024⁸. Unfortunately the pandemic is likely to push back such an event unless they are able to receive sufficient funding from the government.

(A Deutsche Bahn electric train)

European COVID-19 Relief

In February of 2021 EU Parliament passed the Recovery and Resilience Facility (RRF). The RRF will provide EU members with 672.5 billion euros in grants and loans for COVID-19 recovery plans that works towards a green transition^[10]. Member nations need to submit applications to be awarded this financing.

(Graphic of EU RRF)

Germany’s Plan for the EU Recovery and Resilience Facility

The German government has since released the German Recovery and Resilience Plan (GRRP) in January of 2021, a submission to the EU Recovery and Resilience Facility (RRF) for funding. The plan focuses on climate change and digital transformation. The plan has an estimated cost of 29.3 billion euros. 42.7% of this money would be used to create hydrogen supporting infrastructure, climate friendly mobility, and climate friendly renovation and construction^[11]. The GRRP would contribute relatively little to the existing Railway Transport Master Plan compared to the preexisting support of 86 billion euro. The GRRP will help support the creation of hydrogen supporting infrastructure, but such infrastructure would primarily contribute to trucks until Germany upgrades their electric trains to a hydrogen powered train in the far future.

Works Cited

[1] UTM, Editorial. “Relief for the Public Transport Sector? German Government Provides 2.5 Billion Euros for Public Transport - up to 100 Billion Europe-Wide?” Urban Transport Magazine, 5 June 2020, www.urban-transport-magazine.com/en/relief-for-the-public-transport-sector-german-government-provide s-2-5-billion-euros-for-public-transport-up-to-100-billion-europe-wide/.

[2] “A Stimulus Package for Everyone in Germany - Federal Ministry of Finance - Issues.” Bundesministerium Der Finanzen,

www.bundesfinanzministerium.de/Web/EN/Issues/Priority-Issues/stimulus-package-for-everyone/stimulu s-package-for-everyone.html.

[3] Invest, Germany Trade &. Germany to Invest Record 86 Billion Euros in Rail Modernization, 14 Jan.

[4] , www.prnewswire.com/news-releases/germany-to-invest-record-86-billion-euros-in-rail-modernization-30 0986640.html.

[5] Publisher. “Schienenpakt Und Deutschlandtakt Machen Bahnverkehr Leistungsstärker, Zuverlässiger Und Klimaschonender.” BMVI, June 2020, www.bmvi.de/SharedDocs/DE/SocialMedia/Youtube/public/2020/06/LIVE-Schienenpakt-mit-Bundesmin ister-Andreas-Scheuer_fM8Le8ytzTA.html.

[6] , 30 Jun, et al. “Germany to Invest 3 Billion Euros Annually in Railway Expansion.” Clean Energy

Wire, 30 June 2020, www.cleanenergywire.org/news/germany-invest-3-billion-euros-annually-railway-expansion#:~:text=The %20German%20government%20is%20doubling,more%20efficient%20and%20more%20reliable.&text= Around%20100%2C000%20jobs%20are%20expected,of%20the%20plan's%20importance%2C%20howe ver.

[7] Hockenos, Sören AmelangPaul, et al. “How Germany Is Greening Its Growing Freight Sector to Meet

Climate Targets.” Clean Energy Wire, 17 Aug. 2020, www.cleanenergywire.org/dossiers/cargo-transport-and-energy-transition.

[8] “Germany Opens First Carbon Neutral Station.” European Green Capital, ec.europa.eu/environment/europeangreencapital/carbon-neutral-station/#:~:text=German%20railway%20 company%20Deutsche%20Bahn,friendly%20design%20and%20sustainable%20technologies.

[9] , 24 Nov, et al. “Deutsche Bahn Tests Hydrogen Train in Effort to Phase-out Diesel Engines.”

Clean Energy Wire, 24 Nov. 2020,

www.cleanenergywire.org/news/deutsche-bahn-tests-hydrogen-train-effort-phase-out-diesel-engines#:~:te xt=State%2Downed%20German%20railway%20company,in%20southern%20state%20Baden%2DW%C 3%BCrttemberg.

[10] “Recovery and Resilience Facility.” European Commission - European Commission, 18 Mar. 2021, ec.europa.eu/info/business-economy-euro/recovery-coronavirus/recovery-and-resilience-facility_en.

[11] Admin. “German Recovery and Resilience Plan (GRRP) - Federal Ministry of Finance.”

Bundesministerium Der Finanzen, Jan. 2021,

www.bundesfinanzministerium.de/Content/EN/Downloads/2021-01-13-german-recovery-and-resilience-p lan.html.