Green Mobility: The Future of Transportation in Denmark and in the EU Grøn Mobilitet: Fremtidens Transport i Danmark og EU

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1 Green Mobility: The Future of Transportation in Denmark and in the EU Grøn Mobilitet: Fremtidens Transport i Danmark og EU Nordisk Folkecenter for Vedvarende Energi, 7760 Hurup Thy, Danmark Incentive Schemes in Europe Støtteordninger i Europa Daniele Pagani, Nordic Folkecenter Partners: The event is supported by /Arrangementet er støttet af

2 Incentive Schemes in Europe Daniele Pagani 2

3 Agenda Overview of the Incentives in the different countries; Current Status; Conclusions; 3

4 Incentives for EVs in Europe Several countries have green goals for the near future, including banning the sale of combustion engines; 20 states have incentive schemes; 4

5 Overview of the Incentives Country AUSTRIA Incentive Electric vehicles are exempt from the fuel consumption tax and from the monthly vehicle tax. BELGIUM In In the Flemish Region, electric and plug in hybrid (emitting no more than 50g CO2/km) vehicles are exempt from registration tax. Moreover, incentives for electric and hydrogen powered cars (Zero Emission Bonus) were introduced as of 1 January Electric vehicles pay the lowest rate of tax under the annual circulation tax in all three regions. The deductibility rate from corporate income of expenses related to the use of company cars is 120% for zeroemissions vehicles and 100% for vehicles emitting between 1 and 60g CO2/km. Above 60g CO2/km, the deductibility rate decreases from 90% to 50% progressively. 5

6 Overview of the Incentives Country BULGARIA CROATIA CYPRUS CHECH REPUBLIC DENMARK ESTONIA FINLAND Incentive Electric vehicle are exempt from the annual circulation tax. None None Electric, hybrid and other alternative fuel vehicles are exempt from the road tax (this tax applies to cars used for business purposes only). Electric cars and vans are exempt from registration tax. Hydrogen and fuel cell powered vehicles are exempt from registration tax until the end of None Pure electric vehicles always pay the minimum rate of the CO2 based registration tax. 6

7 Overview of the Incentives Country FRANCE Incentive Regions have the option to provide an exemption from the registration tax (either total or 50%) for alternative fuel vehicles (ie electric, hybrids, CNG, LPG, and E85). Under a bonus malus system, a premium is granted for the purchase of a new electric or hybrid electric vehicle: - From 1 January 2016, for a car (not applicable to LCV) emitting between 61 and 110g CO2/km, the amount of the bonus is For a vehicle (car or LCV) emitting between 21 and 60g CO2/km, the bonus amounts to 1, For a vehicle (passenger car or LCV) emitting 20g CO2/km or less, the bonus amounts to 6,300. Electric vehicles are exempt from the company car tax. Hybrid vehicles emitting less than 110g CO2/km are exempt during the first two years after registration 7

8 Overview of the Incentives Country IRELAND ITALY LATVIA Incentive Until December 2016, electric vehicles benefit from VRT (vehicle registration tax) relief up to a maximum of 5,000. For plug in hybrids, the maximum relief is 2,500. For conventional hybrid vehicles and other flexible fuel vehicles, the maximum relief is 1,500. In addition, electric and plug in hybrid vehicles receive a grant of up to 5,000 on purchase. Electric vehicles pay the minimum rate ( 120) of the road tax. In many regions, electric vehicles are exempt from the annual circulation tax (ownership tax) for a period of five years from the date of the first registration. After this five year period, they benefit from a 75% reduction of the tax rate applied to equivalent petrol vehicles. Electric vehicles are exempt from registration tax, annual circulation tax and company car tax. 8

9 Overview of the Incentives Country LITHUANIA LUXEMBOURG MALTA NETHERLANDS POLAND PORTUGAL None Incentive Electric vehicles pay the minimum rate ( 30) of the annual circulation tax. None Electric vehicles are exempt from the registration tax BPM. Vehicles emitting maximum 50g CO2/km are exempt from the annual circulation tax. None Source: European Automobile Manufacturers Association Electric vehicles are exempt from the registration tax (Imposto Sobre Vehículos or ISV) and from the annual circulation tax. Hybrid vehicles only pay 25% of the registration tax. 9

10 Overview of the Incentives Country ROMANIA SLOVAKIA SLOVENIA SPAIN POLAND Incentive Electric and hybrid vehicles are exempt from the registration tax. Electric vehicle are exempt from the annual circulation tax (ownership tax). Electric vehicles are exempt from the annual circulation tax. Hybrid vehicles benefit from a 50% reduction of the annual circulation tax. None Main city councils (eg Madrid, Barcelona, Zaragoza, Valencia etc) are reducing the annual circulation tax (ownership tax) for electric and fuel efficient vehicles by 75%. None 10

11 Country SWEDEN UNITED KINGDOM Incentive A premium (Supermiljöbilspremie) is granted for the purchase of a new electric or hybrid electric vehicle: - SEK20,000 for cars with CO2 emissions between 1 and 50g/km (plug in hybrids) - SEK40,000 for cars with zero CO2 emissions (electric cars) A five year exemption from annual circulation tax applies for green cars (electric cars and plug in hybrids, with electrical energy consumption per 100km which not exceed 37kWh). Reduction of company car taxation for electric vehicles and plug in hybrids Electric vehicles (with CO2 emissions below 100g/km) are exempt from the annual circulation tax, while other alternative fuel cars receive a 10 discount on the paid rates. From 1 April 2010, pure electric cars are exempt from the company car tax, while all cars with CO2 emissions lower than 50g/km pay 5% for the tax year 2015/

12 Incentives for EVs in Europe 20 states have incentive schemes (majority!); Most of them are related to the registration/circulation taxes; NOT SUFFICIENT!!! 12

13 Situation in Europe 13

14 Situation in Europe The registration tax exhemption is not sufficient! In Denmark, the big boom of Tesla was due to a combination of factors, first of which is the import tax exemption: by removing the 180% tax, Tesla became competitive with the premium brands; 14

15 Still, not all is about money! In Norway (market with the highest EV penetration), several types of incentives have been considered. The measures are valid up to autumn 2017, or the reach of 50,000 EV sold: No import tax and VAT; Possibility to drive on bus lanes; Free parking in many cities, with possibility of having the car charged; Establishment of 2,000 new charging points all over the country; Free ferries; 50% deduction, if purchased as company car; In addition, new models released: more choice! 15

16 Conclusions Incentives should provide tangibile benefits to the EV buyer, not only financial ones; Government/energy companies should install more filling stations: in this way, the EV growth will be more «sustainable» and the «empty-tank-fear» will disappear; The supply of EVs will follow the demand: if people wants EVs, car manufacturers will make them! 16

17 Thank you! Remember to try the cars Nordic Folkecenter for Renewable Energy Nordisk Folkecenter

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