Encouraging incentives, not immediate edicts, are crucial for increasing corporate adoption of zero-emission vehicles.

The European Union (EU) is considering ways to increase the adoption of zero-emission vehicles (ZEVs) in the corporate market, with well-designed incentives emerging as a more effective strategy than mandates.

Currently, only 19 EU countries have fiscal policies to stimulate the greening of corporate fleets. It is recommended that these schemes be established in all member states to promote the use of ZEVs. This recommendation is supported by real-world evidence from countries like Belgium, where ZEVs accounted for an 80% market share in the corporate sector last year, and Norway, where approximately 90% of new sales in the corporate market for cars are zero-emission.

Norway's success is largely due to a mix of tax exemptions/reductions, tolling incentives, and other privileges like preferential parking and bus lane use. No legislative mandates were required to achieve these impressive figures.

For commercial vehicles, a range of policy options should be considered, including prioritizing ZEVs in public procurement tenders, incentivizing shippers and transport buyers to increase the share of ZEVs, targeted support for transport operators, CO2-based road user charges, and other enabling transport policy measures.

The focus is on a non-legislative proposal for cars and vans, avoiding further mandatory targets on the supply of vehicles. This approach coordinates national fiscal incentives and best practices at the EU level. However, it's important to note that these measures will only work when the enabling infrastructure and other preconditions are in place.

One of the challenges in many countries is insufficient infrastructure for both private and corporate buyers. Another issue is a weak second-hand market and uncertainty about resale value, which is a problem for corporate buyers in the EU car market. Targeted, smart measures are needed to address these issues and increase the uptake of ZEVs in these segments.

Stimulating the purchase of ZEVs is a powerful lever to boost demand and meet CO2 reduction targets. However, the choice of the most efficient instrument will determine the impact and success. Higher total cost of ownership, including higher public charging prices, is a barrier for both private and corporate buyers in the EU car market.

In conclusion, well-designed incentives, rather than mandates, may be more effective in increasing the adoption of electric vehicles in the EU car market. Examples of countries that have successfully transitioned their domestic corporate markets using incentives serve as evidence of the effectiveness of such measures.

Encouraging incentives, not immediate edicts, are crucial for increasing corporate adoption of zero-emission vehicles.