In a new report, the Transport & Environment think tank criticizes the EU for 'still supporting the fossil car with billions a year'. It is totally unacceptable, says the criticism.
A new investigation shows that the EU countries' support for fossil-fuel cars in the company car sector amounts to billions.
The five largest countries in the EU collectively spend 313 billion Danish kroner annually on subsidizing company cars with internal combustion engines, according to a report from the Transport & Environment think tank.
The support is given, among other things, in the form of tax breaks for those who drive the cars, even if the cars are not electric or plug-in hybrids. This is in contrast to the radical transformation that the EU is trying to promote, the think tank believes.
– It is unacceptable that we are still pouring billions of taxpayers' money into technology that goes directly against the EU's goal of reducing emissions, says Stef Cornelis from Transport & Environment.
While company cars with internal combustion engines benefit from significant subsidies, the situation is different for private car buyers in the EU.
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Here, there are often higher taxes on fossil cars than on electric cars, which makes it more expensive for private individuals to choose cars with internal combustion engines. At the same time, private buyers do not have access to the same tax advantages that company cars use.
The report criticizes that the current support models create an imbalance, where company cars with fossil engines are indirectly prioritized over electric cars. This, it is pointed out, undermines the EU's efforts to reduce CO2 emissions and promote cleaner means of transport.
Although initiatives have been launched in several countries to increase the share of electric vehicles, the report points out that the extensive support for fossil-fuel vehicles in the company car sector is delaying development.
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