The mobility transition as a prelude to competitiveness and social justice

Berlin, 26 February 2025. Looking ahead to the coalition talks, think tank Agora Verkehrswende has published a policy paper, calling for climate-neutral transport to be anchored in the government’s work as a forward-looking, cross-departmental project. The mobility transition is more than just an environmental or transport project. This paper shows how the mobility transition can create added value for society, in particular in the areas of fiscal, economic, energy and social policy.

“The mobility transition is a task for the entire German cabinet,” says Christian Hochfeld, Director of Agora Verkehrswende. “At an EU level, we are already seeing the close inter-linking of environmental and industrial policy with the Clean Industrial Deal. The best way for the automotive and mobility industry in Germany to secure its future is to transition to net zero. It is all the more important, therefore, that all relevant ministries approach the mobility transition as a joint effort.”

Dr Wiebke Zimmer, Deputy Director of Agora Verkehrswende: “The mobility transition will benefit the whole of society. As petrol and diesel prices rise, the ability to switch to electric cars or public transport will become increasingly important, especially for people who are currently reliant on combustion engine vehicles. Good access to clean, safe and affordable mobility for all will help to facilitate social participation, improve health and quality of life, and distribute the costs and opportunities of the transformation fairly.”

Strengthening the industrial transformation and facilitating investments for the future

According to Agora Verkehrswende the successful transformation of the industry will depend initially on the German government making a binding commitment to e-mobility and actually underpinning this commitment with effective measures, a move which could give businesses the planning and investment certainty they need. With regards to regulatory framework conditions like the EU’s fleet-wide CO₂ emission targets, the level of ambition should be maintained and the government should support industry, instead of weakening regulations. This includes, for example, a strategy for attracting new value-added sectors such as battery manufacturing. Carbon emissions should be mapped along entire supply chains, the circular economy should be developed into a hi-tech sector, and support should be given for qualification and training schemes. 

Ultimately, an action plan is needed for increasing the demand for electric vehicles. In addition to tax reforms for vehicles and company cars and the setting of targets for commercial fleets, it is important to establish a purchase programme for electric private cars that is differentiated according to income. “The only way the transformation will be successful is if it happens quickly,” says Hochfeld. “Any delay will weaken Germany’s competitiveness as a centre of industry in both the medium and long-term.”

Agora Verkehrswende proposes three pillars for financing the industrial transformation and a future-ready transport infrastructure with high-performance basic services in public transport: firstly, scrapping environmentally harmful subsidies and privileges; secondly, pay-per-use route charges for cars, vans and HGVs, combined with consistent offsetting of the actual social costs of carbon emissions. Thirdly, the state should be able to borrow more to invest in the future of transport, initially in the form of a special fund, and later through a structural reform of the debt brake. Local authorities should also be given more resources, and have more say and more decision-making powers with respect to the mobility transition. A reformed Federal Transport Infrastructure and Mobility Plan would ultimately guarantee that all needs and climate targets are taken into account across all modes of transport.

Affordable, clean and safe mobility for all

According to the Agora paper, electrifying road transport will provide opportunities for the energy and transport system. The German government could accelerate this trend by further coordinating the expansion of charging infrastructure and, in particular, supporting rapid charging at supermarkets and shopping centres. At the same time, it should make bidirectional charging – from the grid to the battery and vice versa – a possibility. This will require intelligent metering systems, faster processes for connecting to the grid, and time-of-use network charges. This will cut network costs and further reduce charging prices. In air and maritime transport, the government must advocate for the rapid and large-scale global expansion of sustainable renewable fuel production, in particular the production of electricity-based, synthetic fuels (e-fuels).

In order to guarantee a minimum level of publicly accessible mobility for everyone in Germany, as far as possible, Agora Verkehrswende sees great potential above all in rural areas. Here, shared autonomous vehicles, which require minimal staffing, could foreseeably complement or even replace scheduled services. A revised right to work from home and the digitisation of services could make many journeys unnecessary. There is also a need for an e-mobility offensive aimed specifically at rural areas, such as targeted discounts for purchasing or leasing electric cars. Ultimately, the German government has the opportunity to strengthen local authorities, financially and legally, in their role as pioneers of climate-neutral mobility. Important levers here include traffic law, laying the foundations for digitised parking management, boosting cycling and walking options, and expanding mobility advice programmes.

“Joint venture for the cabinet”

The policy paper “Joint venture for the cabinet. Recommendations for inter-departmental climate action in the transport sector as a prelude to competitiveness and social justice” is available to download for free from https://www.agora-verkehrswende.org/publications/joint-venture-for-the-cabinet. 

About Agora Verkehrswende

Agora Verkehrswende is a Berlin-based think tank that seeks to promote climate-friendly mobility. Non-partisan and non-profit, it works together with key stakeholders in the fields of politics, business, academia and civil society to decarbonise the transport system. To this end, the think-tank team develops evidence-based policy strategies and recommendations. Agora Verkehrswende was initiated in 2016 by Stiftung Mercator and the European Climate Foundation. Both of these foundations are shareholders. www.agora-verkehrswende.org