Connect with us

Hi, what are you looking for?

CleanTechnica

Air Quality

European Taxpayers Fork Out €32 Billion A Year To Subsidize Polluting Company Cars

Six out of 10 cars sold in Europe are company cars, and almost all of these are diesel or petrol

Originally published on Transport & Environment.
By Eoin Bannon

  • Six out of 10 cars sold in Europe are company cars, and almost all of these are diesel or petrol

Subsidies for company cars are costing European taxpayers €32 billion every year, a new study shows, and almost all of it is spent on polluting petrol and diesel engines. The 10 largest leasing companies alone — including BMW’s Alphabet and Daimler’s Athlon — cause 8% of EU car CO2 emissions because they are driven over twice as many miles as private cars. Green group Transport & Environment (T&E), which commissioned the study by Dataforce, said governments should end the VAT deductions and write-offs for fossil fuel vehicles and instead guide corporate fleets towards 100% emissions-free vehicles.

Switching to electric cars will save companies €4,300 per vehicle on average, T&E’s own analysis shows, as the total cost of owning a large EV is 9% cheaper than owning a diesel. Yet 96% of new company car registrations last year were still petrol and diesel, according to the Dataforce research. As EVs are cheaper to run and their range is growing ever longer, companies should be left with no incentives to keep using polluting cars.

Saul Lopez, e-mobility manager at T&E, said:

“Electric cars are already the best choice for corporate fleets which clock up high mileage and care about overall costs, not sticker price. Yet most company cars have polluting engines. Why should taxpayers effectively subsidise the pollution of company cars when electrics are cheaper to use?”

Today, six out of 10 cars sold in Europe are company cars, making electrification of the segment “low hanging fruit” for governments to make progress towards their national climate goals. It would also provide cheap second-hand EVs to the used car market. T&E said that by 2025, at the latest, leasing companies should only be buying zero-emission cars.

EU governments should reform the benefit-in-kind taxation, VAT returns and depreciation write-offs received by fossil fuel cars in corporate fleets, T&E said. The EU should also play a role by turning its Alternative Fuels Infrastructure Directive into an ambitious charging regulation that requires a more harmonized roll-out of charging points at home, work and across the bloc.

Saul Lopez concluded: “Company cars are driven more so they pollute more. They are the perfect place to start addressing the toxic air crisis and the climate impact of road transport. Governments, the EU and cities should pick this low-hanging fruit so that all new company cars are electric by 2025.”

Read more: Company cars — How European governments are subsidising pollution and climate change

 
 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

New Podcast: Cruise Talks Autonomous Driving Tech, Regulations, & Auto Design

New Podcast: Battery Mineral Mining Policies & Regional Trends

Written By

We publish a number of guest posts from experts in a large variety of fields. This is our contributor account for those special people, organizations, agencies, and companies.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Cars

The Dutch plugin vehicle (PEV) market dropped 4% in March, to 4,834 plugin registrations, but that result wasn’t all that bad considering that the...

Clean Power

Michelin Group is leveraging its advanced materials expertise to make a pitch for green hydrogen and fuel cells, with 24 Hours of Le Mans...

Climate Change

Conversations about death now start with Facebook. That was possibly the oddest insight I’ve gained from a couple of conversations in the past few...

Clean Transport

If all goes according to plan, a new hybrid hydrogen fuel cell locomotive will sport Toyota fuel cells and green H2, too.

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.