EU’s Push for Electrification of Corporate Fleets

In a bid to combat emissions and meet ambitious climate targets, the European Union (EU) is being urged to prioritize the electrification of corporate fleets. Corporate fleets currently constitute Europe's largest car market, accounting for 58% of new sales and are responsible for a staggering 74% of emissions from new vehicles due to their high mileage. However, the EU's largest automotive market is lagging behind in terms of electrification, with battery electric vehicles (BEVs) comprising only 10.8% of new corporate cars in 2022 compared to 14.5% in the private market.

Published

May 2023

Industry

Electric Vehicles

Author

evmarketsreportscom.acc.teamexpedition.nl

The upcoming “Greening corporate fleets” initiative, announced by the European Commission (EC) in its 2023 Work Programme, presents a vital opportunity to reverse this trend. A recent report analyzing five policy scenarios highlights the multiple benefits that EU action on fleets can bring. Implementing binding targets for all new corporate cars to be zero-emission by 2030 is identified as the most ambitious and effective scenario. Under this scenario, additional positive effects include a reduction of car emissions by 30 MtCO2e in 2030, the acceleration of zero-emission vehicle adoption with 11 million additional ZEVs on the roads by 2030, faster availability of affordable second-hand ZEVs, and significant oil import savings.

To ensure a successful transition to zero-emission mobility, the report emphasizes the need for binding zero-emission targets for fleets as part of the Greening corporate fleets initiative. The most ambitious scenario proposed by the report suggests that by 2030, all new corporate cars should be zero-emission, with an interim target of 50% by 2027. This trajectory aligns with the commitments of European carmakers and would result in substantial CO2 emission reductions.

With the potential to deliver significant benefits for EU citizens, the automotive industry, and energy security goals, the European Commission is urged to take action by proposing binding zero-emission targets for all new corporate cars. By doing so, the EU can bridge the gap in electrification, promote the transition to sustainable transportation, and achieve its increased Effort Sharing Regulation (ESR) targets. The electrification of corporate fleets represents a critical opportunity to drive rapid emissions reductions and propel Europe towards a greener and more sustainable future.

Source: The corporate cars problem and what the EU can do about it | Transport & Eviroment