Italian Prime Minister Mario Draghi has signed a decree to allocate 650 million euros ($708.89 million) a year from 2022 through 2024 for incentives for people who purchase zero- and low-emission cars, the country's industry ministry said on Wednesday.
The outlay is part of a wider 8.7 billion euro long-term plan that Italy announced earlier this year to support its automaking industry.
The plan includes a subsidy of up to 5,000 euros ($5,500) for people who buy new electric vehicles.
That breaks down like this: 3,000 euros for the purchase a new full-electric vehicle (or another alternative powertrain as long as it emits no more than 20 grams of CO2 per kilometer) and costs up to 35,000 euros, plus another 2,000 euros for scrapping a more polluting car (those classed as Euro 1 to Euro 4 based on emission tests).
Italy has set aside 220 million euros for this subsidy for 2022, with that total rising to 245 million in 2024.
Plug-in hybrids, as long as they emit between 21 and 60 g/km of C02, get a 4,000 euro subsidy. That includes a 2,000 euro incentive for cars that cost up to 45,000 euros plus another 2,000 euros for scrapping a more polluting car (Euro 1 to Euro 4).
Italy has set aside 225 million euros for this subsidy for 2022, with that total rising to 245 million in 2024.
There is also an 2,000 euro subsidy for people who buy a new car that emits between 61 and 135 g/km of CO2 and costs up to 30,000 euros as long as they scrap a Euro 1 to Euro 4 car.
Italy has set aside 170 million euros for this subsidy for 2022, with that total decreasing to 120 million in 2024.
Reuters and Automotive News Europe contributed to this story