From progress in fragments to a joint venture as a whole

Status
There has been little change to the fiscal framework conditions. Of note are the inclusion of climate damage costs in the HGV toll and its expansion to more vehicles. Purchase subsidies for electric cars were scrapped at the end of 2023. The car label now provides better information about CO₂ emissions and costs. The CO₂ price is back on the path originally agreed after a planned increase was temporarily suspended. The national CO₂ price will be replaced by EU-wide emissions trading (ETS2) in 2027. The accompanying climate social fund is intended to facilitate the transition to climate-friendly technologies and short-term compensation payments for groups that are particularly affected. Vehicle tax remains largely unchanged, with the exception of privileges for electric company cars being extended to higher-priced models; the planned relief for e-fuel-only vehicles is unlikely to be realised. A car toll designed to charge the costs for infrastructure and environment in line with the polluter-pays principle is not in sight.

Assessment
The path pursued with the fiscal tools does not pave the way to a climate-neutral future, especially as far as cars are concerned. The overall fiscal architecture also remains socially unbalanced. The federal government is not sufficiently supporting the necessary electrification of the car fleet, mainly through tax privileges such as company car taxation, which mainly benefit high-income households. The abrupt abolition of the purchase premium for electric cars as well as public discussions about the fleet limits that have already been decided are causing uncertainty among the population and industry and slowing down electrification. This makes the lack of effective vehicle taxation for cars with high CO₂ emissions all the more serious. There has been no progress towards reducing climate-damaging subsidies. ­Developments such as the expansion of the HGV toll and the revision of the car label are a step in the right direction, but are insufficient overall.

Recommendation
Charges and subsidies are aligned consistently with climate protection, are socially balanced and make a contribution to financing the transport system in line with the polluter-pays principle. The CO₂ pricing of fossil fuels can be planned along an ambitious path: by increasing the CO₂ price in fuel emissions trading (BEHG) and securing a national minimum price level following the introduction of ETS2. Revenues are allocated back directly for social compensation; subsidy programmes facilitate the switch to electric cars or public transport for those particularly affected. The new federal government is using purchase, credit or leasing support to incentivise affordable, efficient electric cars. It is extending the HGV toll to all roads and adopting a toll for cars based on the distance travelled. Vehicle tax will become a CO₂-based payment payable on initial registration. A comprehensive reform of company car taxation reduces privileges for combustion engines. 

Status
The coalition agreement stipulates that road traffic law should be comprehensively reformed with the aim of giving municipalities more decision-making scope and simplifying planning and administrative procedures. New objectives geared towards the public interest (climate and environmental protection, health and urban development) were included in the Road Traffic Act (StVG) in 2024 following lengthy political negotiations, and the Road Traffic Ordinance (StVO) was amended. The General Administrative Regulation on the Road Traffic Ordinance (VwV-StVO), which specifies how the Road Traffic Ordinance is to be applied, should be in place by the end of the year and come into force in spring 2025. The funds for cycling were reduced again in the 2024 budget after being increased in 2022, while those for pedestrian traffic were increased slightly. The pedestrian transport strategy was submitted as a draft for consultation with associations, although it has not yet been adopted. The federal government has not made any progress on the legal requirements for the digitalisation of parking space management or for zero-emission zones.

Assessment
The federal government's reform of road traffic law was the most important measure for the mobility transformation in municipalities and was associated with high expectations. The now reformed Road Traffic Act lays a good foundation for a paradigm shift in road traffic law. The correspondingly adapted StVO has given municipalities seeking to boost eco-mobility a legal tailwind in some areas. Whether this will also relieve them of the planning and administrative burden depends on the design of the VwV-StVO. In terms of municipality freedom of action, however, the reform does not go far enough. Whilst the planned stabilisation of federal funding for promoting walking and cycling from 2025 is very welcome when it comes to municipal planning security, the promised funds fall far short of the funding requirements called for by the federal states. 

Recommendation
The new federal government is tackling the investment backlog. It is expanding the scope and quality of environmental mobility through increased and secure long-term funding. Resources and personnel can be deployed more effectively by reducing bureaucracy, increasing digitalisation in administration (for example in monitoring parking spaces) and practical administrative regulations. The federal government is adopting more proposals from municipalities and associations (see chapter 10.2.) in this case. When structuring the transport infrastructure and mobility services, particular consideration will be given to the mobility needs of children, people on low incomes and older or weaker people in line with the public interest. Additional adjustments to road traffic legislation will provide more room for manoeuvre for municipalities to act preventively to ensure greater road safety in line with Vision Zero instead of simply reacting to existing dangers.

Status 
Rural regions are in need of more affordable mobility services that can be used on a daily basis in order to reduce dependence on private cars. The federal government set itself the target of "good living conditions in urban and rural areas" in the coalition agreement. To achieve this, it provided more funding for the expansion of rail infrastructure in local transport, among other things. Regionalisation funding has also seen an increase, although the operating costs of regional rail and bus services have gone up at the same time. The expansion of bike infrastructure on federal roads and the construction of bike parking facilities at railway stations barely made any progress. The establishment of new positions for regional charging infrastructure managers was resolved in the Charging Infrastructure Masterplan II with a view to promoting electric cars, but was not implemented. Transport-saving settlement development was given priority as a guiding principle in the Spatial Planning Act. No right to work from home was created, however.

Assessment 
Rural areas continue to suffer frequent poor transport connections; climate-friendly mobility services should have been expanded at a significantly faster pace. The regionalisation funds for regional rail and bus services were not sufficient to launch a service offensive. A mobility guarantee for people living in rural areas was not implemented, meaning that many people still lack an affordable alternative to their own car suitable for everyday use. This is also a result of the slow expansion of rural cycling infrastructure. Personnel are lacking for the structured planning of charging infrastructure, since the intended positions have not been created. In contrast to what it had announced, the federal government failed to capitalise on the opportunity to reduce commuter traffic over the long term by granting the right to work from home. It instead stuck to transport incentives that are harmful to the climate, such as the commuting allowance. 

Recommendation
Even if the car is set to continue dominating rural transport, the new federal government is creating the framework conditions required to ensure that people no longer have to rely on their own car and that motorised transport gradually becomes electric. It is defining targets for local public transport in rural areas with a mobility guarantee and ensuring that it receives long-term, satisfactory funding (see chapters 4 and 5). It is driving forward the development and use of shared autonomous vehicles (on-demand transport), predominantly in rural areas. With this in mind, it is promoting large-scale field trials and helping to shape EU regulations. The expansion of bike lanes on federal roads and charging infrastructure (see chapter 6) is being accelerated. The federal government is improving the framework for the faster expansion of fibre optic, electricity and mobile phone networks and in turn the living conditions in rural areas. This promotes working from home, e-charging stations at everyday locations and autonomous transport.

Status 
Following the outbreak of the coronavirus pandemic, the federal government lent considerable support to the local transport sector amid a sharp drop in passenger numbers and revenue. Having introduced the popular 9-euro ticket, it launched the Deutschlandticket in 2023. As part of this, the federal government is covering half of the loss of revenue incurred by the Deutschlandticket. It remains uncertain how the ticket will be financed after 2025. While the increased regionalisation funds do help transport companies to partially compensate for the loss of revenue and the sharp rise in operating costs, they do not permit any expansion of the service. What was agreed in the coalition agreement, the expansion and modernisation pact, has not materialised. The standards announced for services and accessibility have also yet to be realised.

Assessment 
The rescue measures introduced during the coronavirus pandemic have proven to be effective. The Deutschlandticket simplifies and subsidises the use of local public transport, but still does not sufficiently take low-income groups into consideration. Rescue measures and the Deutschlandticket were crucial in bringing passenger numbers back to pre-crisis levels. The resulting decline in ticket revenue, however, is exacerbating the existing financing problems. There is a lack of concrete planning and long-term funding commitments in favour of a necessary service offensive. The federal government has not put forward any proposal for the much-needed nationwide service and quality standards announced in the coalition agreement. The federal government is lacking a comprehensive public transport strategy that takes the expansion of services, financing and pricing for passengers into account as a whole.

Recommendation
In order to increase supply, demand and quality when it comes to local transport, the new federal government is putting its faith in three measures: simple and affordable fares, a nationwide mobility guarantee as well as the expansion and modernisation of overloaded and outdated infrastructure. To achieve this, it is concluding an expansion and modernisation pact involving the federal states and municipalities, which envisages a significant expansion of services by 2030, facilitates better working conditions for staff and includes a financing agreement. The expansion targets are consistent with the climate protection target for transport. In order to combat the shortage of personnel, the federal government is supporting projects aimed at automating public transport, such as on-demand transport. The procurement of electric buses is being further incentivised. Additional funding requirements are also being minimised thanks to joint procurement initiatives. The federal government is also financing the local transport offensive through a car toll (see chapter 1).

Status 
Having reached a low point in passenger numbers as a result of the coronavirus pandemic, the railway now has three per cent more passengers than before the pandemic. The Deutschlandticket makes travelling on regional services easier and more affordable. Punctuality and reliability have decreased, however, because the rail network is overloaded and is undergoing refurbishment in many places. Investment into the rail network has increased significantly in stages, not least because half of the revenue from the HGV toll is now being used for the railways. The focus of investment lies in the general refurbishment of the main line network. Network expansion plays a subordinate role. Electrification and line reactivation have barely made any progress, although improvements are more likely to be achieved in future thanks to changes in the law and growing funding under the Municipal Transport Funding Act (GVFG). The infrastructure divisions within the DB Group have been merged into the newly founded company InfraGO.

Assessment
The Deutschlandticket ensures a rise in passenger numbers in regional transport, but as an isolated measure remains too weak and loses its impact as a result of the price increase and funding uncertainty. The rail network remains the pinch point in the growth of rail transport. Growing renovation activities are expected to improve quality by the end of the decade. The low level of new construction activity is such that it is not foreseeable that the synchronised timetable across Germany will be fully implemented. The increased regionalisation funds are not sufficient for a substantial improvement in regional rail services. Fair conditions in the competition between rail and road are nowhere in sight. This means that railway companies pay high charges for using the rail network, while car traffic is exempt from tolls. The increase in equity for Deutsche Bahn means that charges are at risk of rising further. There is no prospect of passenger numbers doubling by the 2030s.

Recommendation
The central objective of railway policy remains doubling the number of passengers in the long term and significantly improving the quality of rail transport. The new federal government is gearing the management of the DB Group towards this objective. The realisation of a synchronised timetable across Germany is progressing, with the federal government presenting a binding concept for the phased expansion of the network. A significant increase in track access charges is avoided (see chapter 8). The fundamental renovation of main lines will be completed by the end of the decade. A Modern Rail Act will make it easier to electrify and digitalise the railways, while an investment fund will ensure that the necessary investments are channelled into the railways continuously and over the long term. The federal government is supporting the federal states in expanding services by significantly increasing regionalisation funding. It is securing funding for the Deutschlandticket in advance for several years.

Status 
The federal government had pledged in the coalition agreement to set the political framework conditions to such an extent that Germany would become the leading market for electromobility by 2030 - resulting in 15 million purely electric cars. There are currently around 1.6 million out of more than 49 million cars that are battery-electric. Furthermore, around 3,000 of a total of around 86,000 buses are electric. The federal government adopted the Charging Infrastructure Master Plan II in autumn 2022, the implementation of which is now underway. The EU decided to revise the CO₂ limits for cars in March 2023. Discussions about these - and about e-fuels - continued to be heated. Following the judgement handed down by the Federal Constitutional Court on the Climate and Transformation Fund, the federal government suspended the purchase premium for electric cars at very short notice in December 2023. A speed limit on the autobahns was not introduced. 

Assessment
The measures that have been adopted are not sufficient for ensuring the ramp-up of electromobility. Germany will fail to meet the 15 million target by six million cars if no further measures are taken. Consequently, Germany also carries the risk of missing the climate targets across all sectors. The CO₂ limits play a key role in the supply of electric cars. The recurring discussion surrounding e-fuels, the announcement of a faster revision of the limit values as well as the abrupt abolition of the purchase premium are causing uncertainty among potential customers and damaging planning security. When it comes to charging infrastructure, the fast-charging act and the HGV charging network are positive standouts, although there is still a long way to go when it comes to charging facilities in buildings. A number of the initiatives for connecting to the electricity grids do not go far enough. While there are field trials for autonomous driving in public transport, a fundamental roadmap is still lacking.

Recommendation
The new federal government advocates the CO₂ fleet limits for cars and HGVs as agreed in the EU Green Deal. Additional measures are also being introduced with the aim of achieving the 15 million target by 2030 if possible. It is adopting support programmes that also make it easier for households with low and medium incomes to make the switch to electric cars, whether through purchase, loan or leasing support for affordable and, where appropriate, used vehicles. On top of this, it is reforming vehicle tax (see chapter 1) and securing financial aid for e-buses. The new Buildings Act for more charging infrastructure at supermarkets, workplaces and petrol stations will be passed to encourage more affordable charging for cars without their own parking space. The government continues to work on integrating charging infrastructure into the electricity system. A speed limit of 130 km/h on autobahns is also adopted.

Status 
The federal government is focussing primarily on road transport when it comes to the introduction of synthetic fuels from renewable electricity, so-called e-fuels, in the transport sector. This is demonstrated by its advocacy for vehicles exclusively powered by e-fuels within the framework of the EU fleet limits, the adaptation of the regulation for the sale of pure e-fuels in road transport, the multiple offsetting under the greenhouse gas reduction quota and the energy tax relief plans. Advisory bodies were established for air and sea transport, although specific support measures for air transport such as "PtL-Kero" were not implemented owing to budgetary constraints. The European provisions on quota regulations for air and sea transport as well as the revised Renewable Energy Directive have also not yet been incorporated into national law.

Assessment
The regulatory framework conditions for the market ramp-up of e-fuels should be aimed at their use in air and sea transport, since there are no alternative defossilisation options in these areas in the foreseeable future. The fact that the federal government has scrapped subsidies for these transport segments while at the same time pushing their use in the private car sector ought therefore to be viewed with extreme criticism. The federal government's particularly vocal support at EU level for new vehicles powered by e-fuels within the framework of the EU fleet limits has led to considerable uncertainty when it comes to purchasing decisions in favour of climate-friendly vehicles. This is also having a negative knock-on effect on sales of electric vehicles - despite the fact that they are much more efficient than combustion engines powered by e-fuels. The Climate Neutral Aviation Working Group has drawn up a suitable proposal for introducing a levy for the ramp-up of sustainable aviation fuels. Implementation in the near future is not foreseeable, however. 

Recommendation
The federal government is focussing on ramping up the stagnating production of electricity-based fuels for air and sea transport in the coming legislative period. Government support will ensure that long-term purchase agreements are concluded between producers and airlines or shipping companies. To achieve this, the federal government is swiftly implementing the relevant EU requirements and making use of tools such as the proposed levy for sustainable aviation fuels, funding guidelines such as "PtL-Kero" or increases for the H2 Global Mechanism. E-fuels will have to be imported from abroad over the long term. This is why the federal government is working on an international level to establish ecological and social sustainability criteria for e-fuels. A corresponding catalogue of criteria might be presented in the context of revising the hydrogen import strategy.

Status 
The electrification and digitalisation of the rail network is proceeding at a slow pace. New legislation is, however, simplifying planning and modernisation measures. Track access subsidies have remained stable in comparison to previous years. The track access charge subsidisation for rail freight transport has fallen, while track access charges are on the rise as a result of Deutsche Bahn's increase in equity. The HGV toll has been given a CO₂ component. Around half of the revenue is channelled into the rail network. The CO₂ price on diesel is not reimbursed to companies. The subsidy for climate-friendly heavy goods vehicles and their infrastructure has come to an end. Companies were able to receive a reduced subsidy for commercial fast chargers until the end of October 2024. Public funding for refuelling and charging infrastructure is being prioritised for the public HGV charging network on federal land. The federal government has been commissioning the network connections since 2024. Construction and operation of HGV charging points at unmanaged service areas are subject to tenders. 

Assessment
The new CO₂ component in the HGV toll and the development of the public charging network that has already commenced represent important building blocks for the electrification of road freight transport. Faced with the massive cuts following the budget ruling handed down by the Federal Constitutional Court, the preservation and prioritisation of public funding for the HGV charging infrastructure deserves a positive mention - in spite of the fact that the abrupt end to the funding programme for climate-friendly commercial vehicles and infrastructure and the double burden of the CO₂ toll and the CO₂ price have unsettled the industry. The partial use of the revenue from the HGV toll for the railways should be seen in a positive light, as should the increasing investment funds for the railways from the federal budget. These measures have not yet been translated into significant improvements in the rail infrastructure during this legislative period, however. Infrastructure projects such as the corridor renovations must be awaited in order to assess further progress.

Recommendation
The new federal government is strengthening the resilience of the rail network with a view to the specific needs of rail freight transport by increasing route capacities by means of the electrification of alternative routes and the digitalisation of signal boxes. The government is reforming track access charges and in doing so is dampening price increases (see chapter 8). The federal government is establishing planning security for HGV operators by expanding and stabilising funding for private charging infrastructure in companies. It is developing support tools for public charging points outside of federal government areas. When purchasing e-HGVs, the federal government is specifically supporting smaller freight companies in overcoming the high upfront investment costs in the face of an ongoing strained budgetary situation and, in many cases, the lower overall costs of battery-powered HGVs. This is being flanked by framework conditions for faster electricity grid connections and variable grid charges.

Status 
Public funding for rail infrastructure now exceeds that for road infrastructure by a considerable margin. When it comes to roads, however, funding for new construction and expansion is also increasing on top of the necessary maintenance. In fact, some 138 expansion projects can now be implemented more quickly thanks to the Approval Acceleration Act. The federal government published the baseline version of the 2040 traffic forecast in autumn 2024, forecasting traffic growth that misses the targets for CO₂ reduction by 2030 and for a shift to rail. The review of the requirements plan for the Federal Transport Infrastructure Plan has been completed, though it has so far only been (partially) unveiled in the Transport Committee. The HGV toll has been boosted by a CO₂ surcharge and extended to HGVs weighing 3.5 tonnes or more. Almost half of the revenue will flow into the railways after the reform - for the most part via equity increases for Deutsche Bahn. Fund solutions were discussed with regard to the long-term financing of infrastructure. 

Assessment 
In spite of the fact that money from the HGV toll is being used for the railways, the increased investment funds are not sufficient to address the needs that exist following decades of neglected infrastructure investment and cost increases in the construction sector, including for digitalisation and electrification. A climate policy prioritisation of the projects in the Federal Transport Infrastructure Plan 2030 was neglected, all the more so as the baseline forecast is unsuitable as a basis. The only prospect of bridging the target gap was a more ambitious version of the 2040 traffic forecast. Given the tense budget debates and limited construction and planning capacities, such a delay is incomprehensible. Rail investments through equity increases for Deutsche Bahn are causing track prices in rail transport to rise. A modern car toll as a financing component for road maintenance and strengthening the environmental network has not been drawn up. 

Recommendation
The new federal government is building on the increase in funding for the railways and utilising additional funds that were earmarked for expansion and new construction projects on the roads. It is also speedily publishing the ambitious climate policy forecast version and is cutting back on new road construction and expansion as part of its investment planning for infrastructure. It is modernising the planning procedure for a Federal Transport Infrastructure and Mobility Plan 2040 and advancing a climate-neutral transport system across all modes of transport. Transport infrastructure will be financed by means of a distance-based car toll (see Chapter 1) and funds that will ensure the provision of sufficient resources over several years. The increases in rail track prices in the wake of the DB Group's equity increases will be effectively counteracted - by making adjustments to the equity yield return, rail track price subsidies, rail track price reform and alternatives to the equity increase.

Status 
The federal government has supported the transformation of the automotive industry in line with the agreements in the coalition agreement as part of the new 2023 industrial strategy with the aim of achieving the climate targets and preserving jobs and value creation in Germany. In doing so, it has sought advice from the "Transformation of the Automotive Industry" (ETA) expert group, which is based at the BMWK. The coalition consisting of the SPD, Greens and FDP funded battery cell research and production, but many of these funds have currently been cancelled or at least frozen. Regional clusters (transformation networks and hubs) are being subsidised, albeit only until the end of 2025. The general weakness in sales, productivity problems as well as growing competition, particularly with China, pose additional challenges for structural change in the industry.

Assessment 
It is right and indeed important that the federal government supports the establishment of new value creation fields from the battery ecosystem and the transformation of the automotive industry through regional clusters (networks and hubs). What is missing, however, is a fund enabling the separate provision of support to small and medium-sized suppliers that are driving the transformation forward. A reliable overall political strategy that gives the market planning and investment security and empowers automotive companies to develop robust long-term strategies is equally important. Short-term cutbacks (such as in vehicle procurement and battery research) are just as toxic as speculation about weakening the European CO₂ fleet limits for passenger cars and light commercial vehicles by 2035. A lack of technological clarity, consistency and stringency in the political framework stand opposed to Germany's transformation into a leading market for electromobility.

Recommendation
The new federal government is forging ahead with the transformation as an opportunity for climate protection and jobs in Germany as an industrial location through harmonising climate policy in transport and industrial policy at a national level. As a result, it is helping to shape the Clean Industrial Deal in the EU. It is accelerating the ramp-up of electromobility (see Chapter 6) and consolidating support for the transformation. As part of this, it is developing a strategy for the industrial establishment of and cooperation with Chinese companies in accordance with European regulations aimed at promoting fair competition. The federal government is also strengthening free trade within the framework of electromobility with a view to securing access to the necessary raw materials for domestic industry. It also supports the development of globally harmonised carbon accounting methods for automotive supply chains.

Status 
The federal government has not introduced an inter-ministerial overall concept for the transport transformation and has not conducted any coherent monitoring of progress with regard to the key indicators. While efficiency measures have been implemented in other sectors over the short term in response to rising energy prices and shortages, this has failed to materialise in the transport sector. The transport transformation is hardly seen as a means to counter rising oil and gas prices and dependence on imports. The federal government has established an expert advisory council on "Climate Protection in Mobility" (EKM) under the leadership of the BMDV as well as an expert group on "Transformation of the Automotive Industry" (ETA) under the leadership of the BMWK. Both bodies are coordinated by a joint steering committee. Federal political action alliances capable of advancing the implementation of the transport transformation have not been initiated. An overarching infrastructure offensive has not been discernible.

Assessment 
The lack of an overall inter-party and inter-ministerial concept for the transport transformation can be felt in all areas. There is no clear plan for achieving the medium and long-term climate targets in an effective, economically efficient and socially just manner. Only very limited use has been made of the potential of EKM and ETA to develop a corresponding overall concept. And yet, when it comes to climate protection in the transport sector, it is especially important to interlink and harmonise many different tools and measures. Instead of safeguarding compliance with the sectoral emissions targets laid down in the Climate Protection Act with a comprehensive immediate action programme for the transport sector, the federal government has amended the Climate Protection Act and revoked the binding sectoral targets. 

Recommendation
The new federal government is anchoring the transport transformation as part of the transformation of society as a whole. It adopts an inter-party and inter-ministerial overall concept for the transport transformation with fiscal, investment, regulatory and communication measures that can achieve climate neutrality in transport by 2045 - akin to the "Mobility Masterplan 2040" drawn up by the Austrian Climate Protection Ministry. This overall strategy is coordinated across the four political levels, from the EU to the federal and state governments to the municipalities. The planning and expansion of the required infrastructure can be aligned with this target image. The federal government is initiating a "Mobility of the Future" monitoring programme aimed at tracking developments in passenger and freight transport and avoiding missed targets. It is also initiating alliances and action networks.

Status 
The federal government had generally resolved in the coalition agreement to discuss new legislative proposals "at an early stage and across ministries, also in new formats" in the spirit of a "vibrant democracy". "Practical experience and affected groups (...) as well as the experiences and requirements of the federal states and municipalities" need to be taken into consideration when it comes to the actual implementation of legislation. When it comes to transport, this has a particular significance for the road traffic law that was reformed during this legislative period, which was intended to give towns and municipalities more freedom of action. A "new co-operative collaboration with municipalities" was also agreed in the coalition agreement. A simplification of funding programmes was also announced therein. No progress was achieved on either of these aspects, at least in the transport sector. The coalition agreement failed to address one point that is of practical importance: improving staffing levels and qualifications in the municipalities.

Assessment 
Neither the "vibrant democracy" nor the "new collaboration" announced by the federal government have been realised through the appropriate participation of municipalities in key issues in the transport sector. Quite the opposite: when drawing up laws, regulations or funding programmes with a direct impact on municipalities, the federal government frequently set such short consultation deadlines that genuine participation was almost impossible. Municipal stakeholders, such as the "Liveable Cities through Appropriate Speeds" initiative with over 1,000 member municipalities, weren't sufficiently involved in the reform of road traffic law. The traffic light coalition did too little to counteract increasing staff shortages in the municipalities and to support the federal states with corresponding funding programmes. One exception was the continued and simplified municipal guideline from the federal government's National Climate Initiative (NKI), which also subsidises staff positions. 

Recommendation
The transport transformation can only be achieved as a collaborative effort and through dialogue, something that requires a willingness on the part of federal policymakers. The new federal government will better involve municipal umbrella organisations, for example by ensuring appropriate deadlines for consultations. They are launching a dialogue process with the federal ministries, federal states and local municipalities concerned with the aim of simplifying funding programmes for the financing of transport and climate protection measures at municipal level. They are increasing and stabilising funding and reducing bureaucracy for planning requirements (see chapter 2). They are working with the federal states to develop exemplary and high-priority programmes with the Municipal Guidelines, which provide smaller municipalities or those with limited financial resources with unbureaucratic and effective personnel and expertise to help them fulfil their tasks. The federal government supports the involvement and provision of information to the population with the aim of recognising the need for affordable mobility services and making existing services better known.

Status 
The work undertaken by the outgoing federal government is shaped by a changed geopolitical situation: the priority is on security, defence and trade aspects of international policy. All the while, global CO₂ emissions from transport are on the rise and motorisation is skyrocketing, especially in emerging countries. Meanwhile, the electrification of transport is seen as an opportunity to reduce dependence on fossil fuel imports and generate added value in the respective countries. The example of China demonstrates how rapidly emerging countries are able to take the lead in the ramp-up of climate-neutral technologies. The federal government is promoting climate protection in the transport sector as part of the energy transition in partner countries by means of multilateral and bilateral partnerships. Compliance with the international climate financing target of the federal government in the coming year is hanging in the balance.

Assessment
The federal government has not made the transport transformation a priority of international cooperation. If Germany is to achieve a Paris-compatible emissions path, it will have to support ambitious climate protection projects on an international level. The transport sector is responsible for almost a quarter of energy emissions that are harmful to the climate. The proportion of funding, however, is well below that of transport emissions. A clear strategy is required in order to support the transport transformation in international cooperation. The lack of such a strategy weakens climate protection and the export-orientated German mobility industry, a sector that invests large sums in e-mobility and is dependent on international sales markets. The continent of Africa, the population and economy of which will experience the strongest global growth this century, holds particular significance. It is only with an internationally supported technological leap (leapfrogging) that the climate targets can be achieved here.

Recommendation
The transport transformation is turning into a core topic of Germany's international collaboration. The new federal government is establishing international clarity about making Germany the leading provider and leading market for electromobility by committing itself fully to the global phase-out of combustion engines - such as by signing the Glasgow Declaration. The focus in existing partnerships is more on decarbonising the transport sector in line with its share of emissions. New international transformation partnerships bring together industrial and climate policy. These make it possible to secure resilient supply chains and sales markets and promote sustainable development in partner countries with new financing tools. The federal government favours free trade for electromobility. It is working within the framework of multilateral cooperation such as the G20 or the Climate Club to give new vigour to the international transport transformation.