By no later than June 30, 2024, each Member State of the European Union is required to submit an updated version of its Integrated National Energy and Climate Plans to the EU Commission.
This aims to move closer to achieving the goal of reducing greenhouse gas emissions by at least 55% by the year 2030.
To facilitate this, the Commission has provided recommendations to assist member countries in increasing their ambitions.
However, it acknowledges an evident need for additional efforts, especially in light of the outcomes of COP28 and the global call to accelerate action during this decade.
Other countries outside the European Union, such as Norway and the United Kingdom, also have decarbonization goals to meet.
In this context, electric and sustainable mobility plays a crucial role.
Therefore, in order to continue promoting the acquisition of eVehicles, the countries are considering various forms of financing.
Below, Mobility Portal Europe conducts an analysis of the subsidies that will be applied or eliminated in some nations from this current year.
Belgium
Belgium is one of the countries that offers fewer incentives.
Therefore, many sectors of society opt to purchase combustion or used models.
In 2023, the subsidy fund of the SEPP for used Vehicles, limited earlier in the year, remained empty for a long time, while there was still budget available for new electric cars.
For 2024, it is expected that there will be a new subsidy plan to make the purchase or lease of a used electric autos more attractive.
Meanwhile, the Flemish government has a budget of €20 million available for the current year, which will subsidize a maximum of 4,000 new EVs.
Last year, a purchase premium of up to €5,000 was granted to individuals buying a zero-emission unit and up to €3,000 for second-hand ones.
The premiums will be valid until 2026, but they will be higher in 2024.
Czech Republic
It offers a monetary contribution mediated by the State Environmental Fund for the purchase of vehicles with alternative propulsion.
This comes from the National Recovery Plan, to which a total of 600 million crowns have been allocated.
Unlike other European countries, in the Czech Republic, state support for the purchase of an alternative-driven vehicle is not currently intended for individuals.
Also, the Ministry of the Environment does not yet grant subsidies for eCars to companies and entrepreneurs.
The support is directed only to the public sector.
The subsidy for the purchase of an eCar applies to both electric and hydrogen-powered units.
For the latter, it is possible to receive a subsidy of up to 500,000 crowns, while for the former, the maximum amount is 300,000 crowns.
They also offer subsidies for the acquisition of a private charging station, with a maximum amount of 30,000 crowns.
For 2024, the Ministry of Industry and Trade plans to allocate 1,650 million crowns from the National Recovery Plan to support the purchase of vehicles for businesses and an additional 300 million for the construction of charging stations.
Once again, individuals are not eligible for the subsidy.
Applications can be submitted until September 30, 2025.
Denmark
Starting this new year, both new EVs and plug-in hybrids will face another tax increase.
This is part of the “staircase model” adopted in Denmark with the restructuring of car taxes in December 2020.
It will gradually incorporate the registration tax on electrified vehicles until 2030.
Although the tax curve for new eCars will not be very steep, the fiscal increase will be felt differently for plug-in hybrids.
The cheapest plug-in hybrid, costing around DKK 250,000, will pay a registration tax of between DKK 10,000 and DKK 34,198.
Electric cars only pay taxes when they cost more than DKK 430,000.
For EVs costing DKK 450,000 or more, there is a fixed tax of DKK 12,094.
In the case of an eCar valued at DKK 650,000, the tax is DKK 87,094.
France
The country offers an ecological bonus as part of the national “Green Industry” strategy, which will change from this year onward.
The purchased or leased vehicle must have a minimum environmental score to qualify for this assistance.
This allows for a more comprehensive assessment of a car’s carbon footprint.
On December 15, Ademe, the government’s environmental agency, published a first list of eligible EVs for the 2024 ecological bonus.
This excludes almost all models manufactured outside of Europe, particularly in China.
As a result, it significantly reduces the market for subsidized vehicles.
Many manufacturers are working intensively to offset the end of these aids by reducing manufacturing costs, such as the Citroën ë-C3 and Renault 5, announced from €23,000 and €25,000, respectively.
Germany
In the past year, the country gradually reduced incentives for electric and plug-in hybrid cars, with the latest measure being the complete elimination of the Environmental Bonus.
This was not well-received, especially by the German Association of the Automotive Industry (VDA in German), which emphasized the decline in registrations as a consequence of this measure.
For 2024, the Climate and Transformation Fund (KTF) will have €49 million available. Significant saving efforts will be undertaken, amounting to over €12 million.
Meanwhile, subsidies for the construction of refueling and charging infrastructure will be maintained but reduced by €290 million, down to €1.92 thousand million.
The amendment to the KTF, the federal government’s central instrument to support transformation, must be approved in the Bundestag in mid-January.
Recently, the EU Commission granted Germany €4.000 million from the EU’s Recovery and Resilience Facility, created during the coronavirus crisis. These funds are primarily earmarked for ecological and digital transformation.
In this regard, this money will be used, among other things, to expand electromobility.
According to the Commission, the country can access a total of €28.000 million from the help until August 2026.
Italy
The Ecobonus Car 2024 contemplates increasing incentives for the purchase of electric vehicles for those who choose to deregister old cars powered by diesel or gasoline engines.
This aims to renew the automotive fleet in Italy, one of the oldest in Europe.
Additionally, those who purchase a hybrid or electric car will be entitled to an extra bonus of 25% if their ISEE is less than €30,000.
The new incentive plan for the purchase of EVs foresees a total of €930 million, of which €570 million is already earmarked for 2024.
For the purchase of eCars priced up to €35,000, incentives range from a minimum of €6,000 to a maximum of €13,750.
For hybrids priced up to €45,000, a contribution of €5,000 to €10,000 can be requested.
In both cases, the type of fuel of the vehicle, the scrapping of an old car, and the buyer’s income will be taken into account.
For the less affluent classes, the plan offers an additional 25% discount.
Netherlands
This is one of the countries that offers the most subsidies, making it one of the leading adopters of eCars.
In 2023, the Dutch were able to benefit from a financing rate of €2,950 for new battery electric vehicles (BEVs).
However, according to ING Bank, there are still citizens who have not massively replaced their diesel or gasoline cars with electric ones because there are not enough affordable models for the middle class.
The motor vehicle tax after 2025, where drivers will pay up to €500 more in taxes per year, also influences this trend.
This is due to the greater weight of eCars, primarily because of the weight of the batteries.
The Netherlands is still above the European average of 15%.
Finally, the government announced that they will allocate €125 million to help put hydrogen-powered vehicles into circulation.
There is also a subsidy plan for H2 trucks and vans from 2024 to 2028.
Norway
Norway has also become a global leader in replacing traditional cars with electric ones thanks to incentives.
80% of new vehicles sold are electric.
However, in 2023, new taxes targeting eAutos were introduced, slowing down the development, ending the year with only a 3% increase.
It is expected that by 2024, the price of diesel and gasoline will increase, and more taxes will be imposed on plug-in hybrids to boost sales of zero-emission cars.
Sweden
The climate bonus of up to 70,000 crowns disappeared more than a year ago.
Currently, the government’s climate action plan does not provide certainty, leading to very weak demand from private customers.
Also, the high cost of cars contributes to this.
At the moment, the government’s intention is to invest in charging infrastructure.
United Kingdom
The UK grants an exemption from the Vehicle Excise Duty (VED) and a reduction in the benefit-in-kind tax rate.
However, this will change on April 1, 2025.
The change immediately adds £180 to drivers’ operating costs.
The end of the exemption will also require drivers to pay the “expensive car supplement” in addition to their VED, which applies to all vehicles valued at over £40,000.
