[Open letter] Accelerating the electrification of fleets as soon as possible is key to cut transport emissions, increase demand and affordability of electric vehicles

16th December 2024,
Brussels

First of all, we would like to congratulate you and the entire Collège of Commissioners for the Parliamentary approval of the 27^th November. We look forward to working together with you and supporting you during the upcoming mandate.

As Commissioner Tzitzikostas rightfully mentioned during your hearing of the 4th November in the European Parliament, the EU action to accelerate fleet electrification represents a golden opportunity to not only tackle transport emissions, the EU’s largest source of greenhouse gas emissions, but also widen access to cheaper second-hand electric vehicles. We therefore very much welcome the announcement in the Commissioner for Transport’s mission letter to “put forward a legislative proposal for clean corporate fleets,” an initiative that Commissioner for Climate views as “a great opportunity to move the needle in terms of climate impact,” as expressed during the hearing of the 7th November. We strongly encourage the Commission to propose a regulation as soon as possible in 2025, ideally as part of the Clean Industrial Deal’s Automotive Action Plan.

6 out of 10 cars sold in the EU are company cars, with those vehicles driving twice as much as private cars. The purchasing decisions of corporate fleets have far wider implications than just for that enterprise. Company cars tend to spend 3 to 5 years in a fleet before going into the used car market. With 8 out of 10 Europeans buying their cars in the used car market, this is a crucial channel for EU citizens.

At the same time heavy-duty vehicles remain one of the challenging segments with the largest potential to decarbonize, with less than 1% of the EU’s truck fleet currently being zero-emission. Electric trucks are gaining momentum rapidly, with costs declining and infrastructure being rolled out. However, without a supporting regulatory framework for big corporate fleets, adoption risks lagging the levels required to achieve the EU’s climate goals.

Accelerating the transition towards electric vehicles beyond existing policies is a necessity to achieve transport’s net-zero and the 2040 climate target of -90%. As such, the faster fleets electrify their company cars, the faster more households and businesses will be able to access more affordable electric vehicles powered by clean European electricity, the faster we can reduce transport emissions. This is a win-win for climate and consumers.

In line with the Mission Letters, Clean Industrial Deal, and the EU industrial action plan for the automotive sector that they mention, a regulation setting binding targets for large fleets is crucial to accompany supply-side policies with strong demand-side measures and thus ensure a successful decarbonation of road transport. We call on the Clean Industrial Deal to include the legislative initiative on corporate fleets.

Corporate fleets are in a great position to lead the way on electrification, with many already committed to fully transitioning their fleets by the end of the decade through Climate Group’s EV100 campaign. On a total cost of ownership basis, electric vehicles have the advantage over polluting vehicles, meaning electrification makes strong business sense too. A clear regulatory framework would simply ensure that all fleets are playing their part while at the same time create investment certainty and clarity for company fleets.

That’s why the Platform for Electromobility, the alliance of land transport industries, NGOs, civil society and cities, and EV100/+, the leading global initiative bringing together fleets committed to electrification, are uniting and calling on you to make this a key priority of your upcoming mandate and come forward in your 2025 Work Programme with a Greening corporate fleet regulation setting binding electrification targets for cars, vans and heavy-duty vehicles.

We would very much appreciate a meeting where we can discuss this initiative. We count on your leadership to bring forward a regulation setting binding zero-emission targets for large fleets.

With kind regards,

The members of the Platform for Electromobility