Reducing the climate impact of cars in Germany can be achieved while also boosting jobs and growth, the study reveals, but several important challenges must be addressed along the way. The analysis “Low-carbon cars in Germany: An economic analysis”, published on 12 October, was conducted over 18 months with input from Germany’s car manufacturers, parts suppliers, energy sector, infrastructure providers, unions and civil society.
The macro-economic analysis showed that progressively switching from imported petroleum-based fuels to domestically produced electricity and hydrogen would deliver a net economic benefit for Germany. However, achieving this goal would require significant investment in vehicle charging infrastructure; upgrades to the grid; and adjustments for the workforce. Until 2030, when hybrid and plug-in hybrid vehicles dominate the scenarios, auto sector employment remains stable in the scenarios analysed, but after that auto sector workers face important transitional challenges.