Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » Promoting energy efficient vehicles – financial incentives

    Promoting energy efficient vehicles – financial incentives

    eub2By eub228 February 2013 Transport in the EU No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    — last modified 28 February 2013

    The European Commission has published new guidelines on how EU Member States should use financial incentives to best increase demand for low CO2 emission vehicles.


    Advertisement


    Currently, rules on financial incentives differ across the EU, but a common framework could help facilitate the assembly of larger quantities of such vehicles, prompting lower prices for consumers.

    Incentives can be useful instruments to foster the low CO2 producing vehicle industry, but they can also create trade distortions, says the Commission.

    To address this issue, mandatory principles under the guidelines include non-discrimination with regard to the origin of the vehicle, the respect of EU state aid and procurement rules, and building on best practices in this domain. Member States must consider these principles in order not to violate the EU Treaty provisions, while other principles are recommended (see below).

    In order to further enhance the uptake of cleaner cars, today during the Formula 1 test days in Barcelona Vice-President Tajani also unveiled the Volar-e, one the most powerful electric cars ever made.

    Guidelines:

    Guidelines for all vehicles encompassing incentives granted in all forms

    Guidelines will be applicable to cars, vans, buses, trucks as well as two- and three-wheelers and quadricycles. They will apply to financial incentives granted in all forms, such as straight grants, loans, tax deductions, other kinds of fiscal incentives or incentives in other monetary form.

    Mandatory principles

    Obligatory principles are based on the EU Treaty and concern provisions which must be considered in order not to violate its provisions. They encompass:

    • Non-discrimination with regard to the origin of the vehicle concerned
    • Compatibility with the EU type-approval legislation
    • Non-violation of EU state-aid rules
    • Taking of public procurement provisions into account (Directive 2009/33/EC)
    • Respecting mutual recognition by notifying incentives (Directive 98/34/EC).

     

    Recommended / best practice principles

    Recommended principles serve as a set of best practices whose implementation will help obtain additional benefits at the European level.

    • Technological neutrality – incentives should not be limited to certain category of vehicles (e.g. combustion engine, hybrid, electric etc.)
    • Reference to a common performance-criteria – incentives should be available for all new vehicles reaching a target environmental performance
    • Proportionality – the incentive granted should be proportional to performance improvement
    • Adequate incentive size – it should not exceed additional cost of technology
    • Reference to EU CO2 limits – thresholds for the financial incentives should take into consideration the CO2 emission limits defined by relevant EU legislations.

    Background

    The development and an increased market penetration of clean and energy efficient vehicles have long been considered as effective ways to decrease transport dependence on hydrocarbons and reduce greenhouse gas emission. They also help the European automotive industry retain its competitive advantage in the global market.

    In recent years a great number of policy measures have been adopted at EU, national and regional levels to facilitate the development and supply of low CO2 emitting vehicles. Considerable funding from European programmes was earmarked for research and innovation activities, enabling successful market introduction of several clean technologies. In parallel with public policy efforts aimed at greening road transport, implementation of demand measures has become essential in order to improve customer awareness and acceptance of cleaner vehicles, thereby fostering their market uptake.

    In its 2010 Communication “A European strategy on clean and energy efficient vehicles” the European Commission presented a strategy for the development and market penetration of clean vehicles. Guidelines for financial schemes were one of its suggested tools to assist the deployment of the clean and fuel efficient vehicles in Europe. Strong support for this initiative was also expressed in the CARS 21 final report and adoption of this measure was confirmed in the CARS 2020 Communication.

    Source: European Commission

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    eub2
    • Website

    eub2 is the default publisher for EUbusiness.

    Related Content

    ETF logo

    Policy Officer for EWCs and Company Policy, European Transport Workers’ Federation, ETF

    Airplane landing - Image by Pixabay

    European airlines agree to modify environmental claims

    Raffaele Fitto - Photo © European Union 2025

    EU to speed up plans for Europe’s high-speed rail network

    Spain high-speed train - Photo by Antonio Garcia Prats on Pexels

    EU sets out plan to complete Madrid-Lisbon high-speed connection by 2034

    Car crash - Photo by Clark Van Der Beken on Unsplash

    Nearly 20,000 people lost their lives in road crashes in the EU last year

    Norway plane - Image by jacqueline macou from Pixabay

    EU signs agreements with Norway, Iceland on transfer of passenger name record data

    LATEST EU NEWS
    Disabled person on wheelchair - Photo by Marcus Aurelius on Pexels

    Commission consults on Strategy for Rights of Persons with Disabilities

    14 November 2025
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Markets look to latest eurozone economic growth projections – Euro currency news daily

    14 November 2025
    Student lecture - Photo by Airam Dato on Pexels

    EU issues calls for over EUR 5 billion funding for skills under Erasmus+ 2026

    13 November 2025
    Google search - Photo by cottonbro studio on Pexels

    Brussels opens probe into Google ‘demoting’ some publishers in search results

    13 November 2025
    Red Bull - Image by Noel from Pixabay

    EU Commission opens antitrust probe into Red Bull

    13 November 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?