Last week, the State Council approved adaptations to the extension of subsidies for CO2-neutral vehicles, which will now be in place until 31 March 2024.

The government's subsidy plan for electric vehicles was initially scheduled to already end in March this year. On Monday morning, Minister for the Environment, Climate and Sustainable Development Carole Dieschbourg announced to the press that the aid has been prolonged for another two years.

The politician from the Greens further explained that the transition away from fossil fuel dependancy and foreign price volatility will be subsidised through the 'Clever fueren' ('Clever driving') allocation. This support is granted for electric cars, bicycles, and other vehicles. The government will refund between €600 and €8,000, depending on the vehicle.

Even though the programme is prolonged, there is one change to the subsidisation of electric cars. It is now paid out immediately, after which owners have to hold on to their car for a minimum period of twelve months.

As already announced, hybrid cars will no longer be subsidised. However, the aid is still awarded to purchases made before September 2021 and registered before the end of 2022.