Japan doubles electric vehicle subsidies
Japan’s Environment Ministry is increasing its subsidies for the purchase of battery electric vehicles. The maximum amount per BEV vehicle will be doubled to 800,000 yen (about 6,340 euros), provided the electricity used in the buyer’s home or office is generated from renewable energy sources.
This is according to a report in the Japanese news site Nippon. Speculation about this increase began in November. But contrary to the information leaked in advance, the government subsidy will also be doubled for plug-in hybrid vehicles to up to 400,000 yen (just under 3,200 euros) and that for fuel cell vehicles will be increased by several hundred thousand yen from the current 2.25 million yen per vehicle (just under 18,000 euros).
For this “temporary increase,” the government is allocating a budget totalling 8 billion yen (about 63 million euros) in the third supplementary budget for the fiscal year 2020. Individuals, small businesses and municipalities are eligible to apply.
According to the Nippon article, the mandatory use of green power does not appear to be tied to any direct connection to the charging of e-vehicles. It simply states that buyers must purchase green power for their buildings (home or business). There was already confusion around this subsidy requirement in the Japan Times article three weeks ago.
The Japanese government decarbonisation strategy is not all about incentives, but also regulation. Earlier this month speculation arose suggesting that the government is aiming to ban the sale of combustion engines by the mid-2030s.
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