New report finds corporate cars ‘leading on pollution, lagging on electric’

Companies in Europe, which are ideally positioned to switch to electric vehicles, are lagging behind private consumers for the third year in a row, according to a new report by the NGO Transport & Environment (T&E), published on Tuesday, 11 June.

The report comes as the Commission launches a public consultation on greening corporate fleets.

According to the report, six out of ten new car registrations in the EU are company cars.

Corporate car buyers—mostly leasing companies—could play a big role in the transition to net zero, given their continuous car uptake, their higher purchasing power versus private buyers, and the generous tax benefits for company cars.

Instead, in 2023, European companies had a lower uptake of zero-emission vehicles (ZEVs) compared to private consumers (14.1% vs 15.6%) for the third consecutive year. This is particularly true in Europe’s largest markets, France and Germany while the picture is more mixed in other countries.

The report finds that corporate fleets are the biggest source of emissions produced by new cars since, they register twice as many large SUVs than private buyers and annually, they drive twice as many kilometres.

On top of that, T&E finds that, companies register more plug-in hybrids, which it considers “fake electric cars.” The Commission found that plug-in hybrids emit 3.5 more greenhouse gas emissions than is formally declared, as in real life, consumers are more inclined to use the hybrid’s petrol engine.

The lower take-up of corporate ZEVs is seen as a missed opportunity to support EU carmakers in their transition to electrification, as companies prefer European car brands.

The report’s findings are particularly relevant in the current public consultation on Greening Corporate Fleets. Based on this consultation, the European Commission is expected to propose a new EU regulation.

T&E believes any new regulation should include binding ZEV targets for large fleets (100 cars or more) and leasing companies.

The European Automobile Manufacturers’ Association (ACEA) told Euractiv that “the industry has already a well-defined pathway towards a -100% CO2 target in 2035. Therefore, we need to carefully consider the balance between any proposal for additional mandatory targets and the state of enabling conditions”.

ACEA stressed the need for charging points and fiscal incentives to transition to electric vehicles, and affirmed that “we need to see around 22,000 public charging stations installed weekly to achieve the 55% CO2 reduction target for cars and vans by 2030.”

The industry body concluded that regulators should prioritise demand stimulation for EVs over mandatory targets.

[Edited by Donagh Cagney/Alice Taylor]

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