Between infrastructure crisis and political influence
Climate transformation fund and the Deutschlandticket
One of the key measures for climate-friendly mobility is the Deutschlandticket, which has been available for 49 euros per month since May 2023 and enables the use of local and regional transport throughout Germany. According to the MobilKULT study conducted by the Fraunhofer Institute for Systems and Innovation Research in 2024, it has already resulted in a noticeable shift from cars to public transport.
Nevertheless, the Deutschlandticket faces financial challenges. From January 2025, the price is to rise to 58 euros in order to secure long-term financing. The transport companies are experiencing a loss of revenue due to the low-cost ticket, which the federal and state governments will have to compensate for. The original plan was to cover a significant part of the financing via the Climate Transformation Fund (KTF). However, a ruling by the Federal Constitutional Court in 2023 brought many of the planned projects to a standstill.
The cuts to the KTF are hitting the rail sector particularly hard. Around 3.2 billion euros for the digitalisation of trains and 9.5 billion euros for the construction and expansion of rail infrastructure have been cut. This is slowing down urgently needed modernisation, including the electrification of lines, the expansion of stations and the digitalisation of the network - all key areas for the transport transition.
Reforms in road traffic: the StVO amendment 2024
The amendment to the StVO, which came into force in June 2024, aims to make mobility more sustainable and safer. Local authorities have been given more leeway to set up 30 km/h zones, create bus lanes and promote cycling and walking. These measures are intended to reduce emissions and improve road safety, particularly in cities. Despite this progress, the priority often remains on car traffic. The 30 km/h speed limit remains the exception, which limits the implementation of safety-enhancing measures.
E-car subsidies, China tariffs and EU fleet limits
Electromobility remains a key issue. In 2024, the German government adjusted subsidies for electric cars in order to revitalise stagnating sales. At the same time, German manufacturers are calling for a review of the strict EU fleet limits, as they are finding it difficult to compete with low-cost, technically mature electric cars from China.
To protect European manufacturers, the EU Commission introduced protective tariffs on Chinese electric vehicles at the beginning of October. The aim of this measure is to ensure the competitiveness of the European automotive industry. Nevertheless, the challenges remain great, as sales of electric vehicles are falling short of expectations and the realisation of EU emission targets is becoming more difficult.
Dilapidated infrastructure: railway, roads and bridges
On 14 September 2024, workers demolished the northern approach of the collapsed Carola Bridge in Dresden while the level of the Elbe was rising and flooding was imminent. © Reinerhaufe
The cuts to the Climate Transformation Fund have had a massive impact on the expansion of rail infrastructure. The outdated rail network, train delays and lack of capacity in freight and passenger transport in particular are the focus of criticism. The road infrastructure is also in poor condition: dilapidated bridges and roads pose a safety risk and hinder traffic. Despite renovation programmes, a lack of personnel and bureaucratic hurdles are hindering progress.
Criticism of high investment in trunk road construction
A particularly controversial point in 2024 was the massive allocation of funds for the expansion and renovation of trunk roads. While significant sums were channelled into the modernisation of the rail network, an even greater proportion of investment was directed towards road construction. This decision is at odds with the goals of the transport transition, which aims to reduce motorised private transport and promote more climate-friendly forms of mobility such as rail transport.
The Greenpeace research ‘Asphalt instead of alternatives’ brought to light the strong links between politics and the road construction lobby. According to the study, two thirds of the lobbyists registered in the Bundestag in the field of transport planning are representatives of companies and trade associations involved in road construction. In comparison, only a small proportion represent the interests of environmental and climate protection organisations. The road construction lobby thus exerts considerable influence on the prioritisation of infrastructure projects, which is increasingly attracting critical voices from politics and society.
One particularly controversial example is the planned A20 coastal motorway, a multi-billion euro project that is being pushed ahead despite the urgent need to renovate existing infrastructure. Critics complain that such projects tie up funds that would be better invested in the expansion of sustainable alternatives such as rail transport.
Many cities now have permanent parking spaces for e-scooters. © TIER
The Federal Transport Infrastructure Plan (BVWP) provides for the construction of around 6,000 kilometres of new motorways and trunk roads and the expansion of around 4,000 kilometres of existing trunk roads by 2030. The total cost of these projects amounts to around 180 billion euros.
Such sums stand in stark contrast to the comparatively lower investments in climate-friendly transport infrastructure.
The Greenpeace research also shows that large construction companies such as Hochtief, Strabag and Max Bögl benefit from the extensive road construction contracts. In recent years, these companies have been awarded contracts worth billions for the expansion and maintenance of the motorway network.
Critics emphasise that this prioritisation of road construction undermines the goals of the transport transition in the long term. While the German motorway network is already one of the densest in Europe, necessary investments in local public transport, electromobility and rail infrastructure are falling by the wayside.
This could perpetuate car dependency in many regions and make it more difficult to reduce CO2 emissions in the transport sector.
Many experts are therefore calling for a reorientation of the investment strategy in order to promote the expansion of climate-friendly mobility solutions more strongly.
Consolidation in the shared mobility market
In 2024, the market for shared mobility continued to consolidate. Large providers merged (e.g. TIER/dott) or withdrew from unprofitable cities (TIER, Lime). Falling demand, particularly in rural regions, led to this development. At the same time, cities are increasingly regulating the use of e-scooters and rental bikes and are relying on mobility hubs to connect different modes of transport.
Lack of skilled labour is slowing down the transport turnaround
The shortage of skilled labour runs through all areas of the transport transition. There is a lack of qualified labour in electromobility, public transport and construction, which delays projects and hinders innovation. Although measures have been taken to recruit skilled labour and promote training, the results so far have been limited. According to the Nuremberg Transport Association, there is a nationwide shortage of 20,000 bus drivers.
The transport transition in the field of tension between politics, business and society
The transport transition in Germany in 2024 is characterised by great ambitions, but also by considerable obstacles. While measures such as the Deutschlandticket and the amendment to the German Road Traffic Act are making progress, financial bottlenecks, infrastructural problems and the influence of lobbying continue to pose major challenges. The next few years will show whether Germany can achieve its climate targets in the transport sector and win over the population in favour of these changes.
Author
Janina Zogass
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