Transforming Corporate Fleets Across Europe: The Impact of Compulsory Zero-Emission Vehicle Goals
The Transport & Environment (T&E) organisation, under the leadership of LΓ©on Thibault, director of the electric fleet program, has launched a position paper titled "Greening corporate fleets: an industrial and social policy for Europe." The paper aims to address corporate fleet emissions through mandatory Zero-Emission Vehicle (ZEV) targets across the European Union.
The paper argues that setting binding ZEV targets for corporate fleets is a crucial step in increasing their adoption. By 2030, it projects a ZEV uptake of 72% for cars and 74% for trucks by 2035, should all new corporate fleets (with more than 100 vehicles, including leasing companies) be 100% ZEV.
The T&E paper advocates for a unified EU policy framework to catalyze ZEV uptake across corporate fleets, rooted in a realistic assessment of market dynamics, regulatory impacts, and the urgency of climate action. This framework, according to the paper, would significantly reduce emissions and provide market demand for manufacturers, creating a robust second-hand ZEV market.
The importance of corporate fleets in driving demand for clean technology and battery supply chains is underscored in the paper. Industrial Policy highlights that corporate fleets are crucial demand drivers. Their transition to ZEVs will stimulate investments in these sectors, allowing manufacturers to scale up production.
However, the paper also acknowledges the challenges that come with implementing such changes. For instance, ensuring equitable access to charging infrastructure across countries with disparate uptake rates is a significant challenge. Furthermore, implementing made-in-EU clauses to prioritize local manufacturing without disrupting global trade requires careful navigation.
The paper also sheds light on the current state of corporate fleet emissions. Corporate fleets represent 60% of new car registrations in Europe, but lag behind private owners in their uptake of ZEVs. This lag, combined with the insufficient "Fit for 55" measures to meet 2030 targets, makes road transport a significant challenge in reducing emissions.
Countries like Germany and France have been identified as those where companies aren't doing enough to align with net-zero targets, thus burdening private households. On the other hand, a two-speed Europe is emerging in the truck market, with Germany and the Netherlands accounting for 60% of all zero-emission truck sales.
The T&E paper concludes by emphasising the financial capacity of companies to lead the ZEV transition, potentially reducing costs for smaller players. As corporate cars enter the second-hand market faster, they can provide affordable ZEVs to households. By electrifying corporate fleets, over 8 million affordable used ZEVs could be introduced into the market by 2035.
In light of these findings, the T&E paper calls for a Corporate Fleets Regulation within the first 100 days of the European Commission's new mandate. The paper provides a clear roadmap for leveraging corporate fleets' substantial potential to transform Europe's automotive landscape.
