Tuesday, May 30, 2023

Corporate fleets are responsible for 74% of new car emissions in Europe

Corporate fleets are responsible for 74% of new car emissions in Europe

Corporate fleets are the largest car market in Europe. They account for 58% of new sales and, given their high mileage, are responsible for 74% of new car emissions. The electrification of corporate cars will accelerate the electrification and emission savings of transport in Europe. The latter is important as the EU and member states have recently raised the ambition of the Effort Sharing Regulation, setting binding 2030 targets for road transport, heating, agriculture, small industrial establishments and waste.

But Europe is currently missing out on this great opportunity. The EU’s biggest car market is lagging behind in electrification. In 2022, 10.8% of new corporate cars will be battery electric vehicles (BEVs), compared to 14.5% in the private market, and that gap is only growing.

The upcoming Green Corporate Fleet initiative, announced by the European Commission (EC) in its 2023 Action Programme, is an opportunity for the EU to reverse this trend.

In this report, which examines five different scenarios and policy options, it analyzes the impact that EU action could have on the fleet. Our analysis shows that setting a binding target for all new corporate cars to be battery electric by 2030 (the most ambitious policy scenario) would deliver the following benefits:

CO2 Emission Reduction:

Car emissions are reduced by an additional 30 MtCO 2 e by 2030. Overall, this is 83 MtCO 2 e higher than current EU policies. Fleet targets will reduce the ESR emissions gap by 37%, demonstrating that EU action on fleets is vital for the EU and Member States to meet their enhanced ESR targets.

Corporate fleets are responsible for 74% of new car emissions in europe

Accelerate the adoption of electric cars:

An additional 11 million battery-powered electric cars will be on our roads by 2030, replacing polluting gasoline and diesel cars. A binding EU fleet target will ensure continued growing demand for BEVs and thus support European OEMs becoming electric car manufacturers and the EU Green Industrial Plan’s goal to bring battery and electric cars production to Europe.

Fastest supply of affordable pre-owned electric cars:

Today, almost 8 out of 10 EU citizens buy their second hand cars. Given their very short ownership periods (three to four years), electric business cars could accelerate the supply of affordable pre-owned BEVs. A binding EU fleet target would bring an additional 12.5 million BEVs into the market by 2035.

Saving in oil import:

An additional 208 million barrels of oil by 2030 and 1029 million barrels by 2040 would reduce oil imports. Therefore, EU fleet targets will greatly contribute to EU efforts to increase energy security and become less dependent on oil imports.
What should the European Commission do?

It is unacceptable that companies are lagging behind in the transition to zero emissions mobility. Corporate and leasing companies have the financial resources to incur high start-up costs and benefit from large tax breaks in most EU countries. Our analysis shows that setting binding zero emissions targets for fleets as part of the Green Corporate Fleets initiative could reverse this trend, while providing benefits for EU citizens, the automotive industry and EU energy security goals. Could

The most ambitious scenario (i.e., 100% of all new corporate cars to be zero-emission by 2030 and 50% by 2027) clearly offers the greatest benefits, not only for 2030, but well beyond.

Therefore, as part of the forthcoming Green Corporate Fleet initiative, the European Commission should propose the following:

  • Binding zero emission target for all new corporate vehicles. Experience so far (see Section 2.5) has taught us that voluntary goals do not work;
  • By 2030, all new corporate cars must be zero-emission. This trajectory is in line with the commitments of European car manufacturers;
  • By 2027, 50% of all new corporate cars must be zero-emission. This interim target is important to ensure continued acceptance of zero emissions cars.
Nation World News Desk
Nation World News Deskhttps://nationworldnews.com/
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