Summary
- EU Commission planning legislation for quicker electrification of large company fleets
- Analysis by T&E shows potential for over 2 million electric cars in 2030 for European carmakers
- EU target proposed for all fleets with over 100 cars to buy only electric by 2030
- Corporate cars are EU’s largest automotive market, but slow in electrification compared to private households
- T&E calls for binding electrification targets for large fleets and EU eco-score initiative to boost demand for EVs made in EU
Article
The European Union Commission is planning legislation to accelerate the electrification of large company fleets, with the aim of guaranteeing demand for over 2 million electric cars from European carmakers by 2030. This law would help carmakers meet their 2030 CO2 emissions targets and avoid penalties. Companies such as Stellantis and BMW would benefit significantly from this legislation, with fleet electrification targets potentially providing half of the EV sales needed to meet binding targets.
Despite the potential for the corporate car market to support the transition to electric vehicles in Europe, companies are not electrifying their fleets at a faster rate than private households. In the EU’s biggest car markets, Germany and France, companies are even lagging behind private households in the adoption of electric vehicles. The EU Commission has initiated a dialogue on the future of the European automotive industry, led by President von der Leyen, to address critical challenges and ensure the sector’s success. An Automotive Industrial Action Plan is set to be presented on March 5th, aiming to support EU car manufacturers in their investments in electrification.
Stef Cornelis, director of the electric fleets program at T&E, emphasizes the need for climate policies in Europe that strengthen competitiveness. He argues that electrification targets for large fleets can boost demand for EVs made by European car manufacturers and should be prioritized over lobbying to weaken emissions rules. T&E also advocates for an EU eco-score initiative that rewards low-carbon electric vehicles produced with clean materials, potentially boosting the demand for EVs made in Europe.
In order to provide investment certainty for carmakers and the charging infrastructure industry, T&E calls for the European Commission to announce binding electrification targets for large fleets. This would help sectors like charging infrastructure plan grid infrastructure roll-out and investments. By setting requirements for corporate EVs to meet specific eco-score levels, the EU fleets law could drive demand for EVs made in the EU. This would create opportunities for both carmakers and industries supporting electrification.
T&E’s focus on accelerating the adoption of electric vehicles through policy measures like electrification targets for large fleets aligns with the broader goal of promoting sustainable transportation in Europe. By encouraging companies to transition their fleets to electric vehicles, the EU can drive the shift towards cleaner and more sustainable transportation options. This approach not only benefits the environment by reducing emissions but also supports the growth and competitiveness of the European automotive industry in the global market. In summary, T&E’s advocacy for stronger climate policies, such as binding electrification targets for large fleets, can play a crucial role in advancing the adoption of electric vehicles and promoting sustainable mobility in Europe.
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