COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Decarbonise Corporate Fleets
Date: 2025-03-05
Institutions: Directorate-General for Mobility and Transport, European Commission
Subjects: carbon neutrality, clean technology, electric vehicle, motor vehicle industry, motor vehicle pollution, pollution control measures, urban transport, vehicle fleet, vehicle rental, vehicle tax

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 5.3.2025  COM(2025) 96 final  COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Decarbonise Corporate Fleets  
 
 
1.  INTRODUCTION  

The automotive industry is  a core  engine of European  prosperity, innovation and growth.  As 
the  Automotive  Action  Plan  notes,  the  sector  is  in  full  transition,  experiencing  structural 
changes at unprecedented speed and magnitude over the coming years and decades, driven by 
the  accelerating  shift  to  zero-emission  mobility  and  the  increasing  integration  of  digital 
technologies.  Future vehicles will be increasingly  clean, connected and automated.  Corporate 
fleets are at the heart of this transition.  

Currently, there are almost 290 million vehicles on European roads. Only 6 million are zero-
emission vehicles. Corporate vehicle registrations, i.e. vehicles purchased by legal entities and 
not  by  physical  persons,  make  up  around  60%  of  car  registrations  in  the  EU.  In  the  case  of 
vans, buses, coaches, and trucks, the whole market is effectively corporate, as almost none of 
those  vehicles  are  registered  in  the  name  of  private  individuals.  Hence,  measures  in  the 
corporate segment can have a positive impact on the overall market.  

The Regulations setting CO2 standards for passenger cars and vans and for trucks represent an 
effective  supply-side  measure,  setting  progressively  higher  emission  reduction  targets  for 
manufacturers.  

From 2035 onwards, new cars and vans will be allowed for registration in the EU only if zero-
emission1; for heavy-duty vehicles, the increasingly stringent targets culminate in a 90% CO2 
emissions  reduction  from  2040  onwards,  while  all  new  urban  buses  will  have  to  be  zero-
emission as from 20352. These measures should now be supplemented by appropriate stimulus 
to  the demand for zero-emission  vehicles,  whereby support to corporate  vehicles  plays a key 
role.  

Accelerating the uptake of zero-emission vehicles in corporate fleets can benefit the European 
automotive  industry  and  help  increase  its  competitiveness  and  resilience  at  this  pivotal 
moment. It can also help with reducing transport emissions further due to the higher milage of 
corporate  vehicles.  Transport  accounts  for  a  quarter  of  EU’s  total  greenhouse  gas  emissions 
and  is  a  major  contributor  to  air  pollution.  In  urban  areas,  some  of  which  have  enacted 
increasingly tight low-emissions zones, the impact of zero-emissions vehicles on improving air 
quality  is  very  pronounced.  Hence,  accelerating  the  uptake  of  zero-emission  vehicles  co-
benefits pollution reduction and our citizens’ health. 

EU  vehicle  manufacturers  generally  have  higher  market  shares  in  corporate  vehicles  than  in 
private ones. An accelerated demand for zero-emission vehicles from corporate fleets can help 
regain growth  and competitiveness  of  the European  automotive sector,  reduce overall cost  of 
operations over the lifetime of the vehicle for fleet operators and help consumers by improving 
second-hand car market offerings and hence reducing the costs of zero-emission vehicles.  

Such action therefore can make an important  contribution to the  industrial action plan on the 
automotive industry, while also contributing to the objectives of the Clean Industrial Deal, the 
European Green Deal, and the Compass for Competitiveness. 

Any measure would need to take into account cost-efficient and fast reduction of emission as 
well as territorial dimensions and challenges in less developed regions and in (sub)urban, rural 
or remote areas including gaps in (recharging) infrastructure.  

1 Regulation (EU) 2019/631  
2 Regulation (EU) 2019/1242 

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This  Communication  presents  an  overview  of  the  market  for  the  companies  and  vehicles 
considered  as  corporate  fleet  and  their  challenges,  opportunities  and  good  practices  that  can 
help accelerate zero-emission vehicles update in corporate fleets with the view to achieving the 
2035 zero-emission target. It also includes actions that Member States can take already today to 
increase  the  uptake  ahead  of  the  legislative  proposal  that  the  Commission  is  working  on  and 
which  should  be  adopted  by  the  end  of  the  year.  It  can  also  serve  as  a  blueprint  and  best 
practice example for our neighbourhood and partner countries. 

2.  WHAT ARE CORPORATE FLEETS? 

The  markets  of  corporate  fleets,  their  actors  and  their  business  models  vary  substantially. 
Depending  on  the  market  segment,  market  actors  can  be  very  large,  operating  thousands  of 
vehicles, or very small, operating just a few. Many actors are SMEs. But at the same time, only 
a few large companies control the majority of leasing operations, which are responsible for the 
vast majority of corporate vehicle registrations. 

There  is  currently  no  definition  in  EU  legislation  of  what  entails  a  corporate  fleet.  For  the 
purpose  of  this  Communication,  all  vehicles  registered  by  a  legal  entity  (as  opposed  to  a 
physical  person)  are  considered  corporate  vehicles3.  Thus,  corporate  fleets  could  be  divided 
into  five  broad  categories,  covering  cars,  vans  and  heavy-duty  vehicles  (trucks,  buses  and 
coaches):   

•  Company cars – vehicles provided by an employer to an employee as a benefit in kind; 
their  share  in  the  total  fleet  varies  significantly  between  Member  States  due  to 
differences  in  their  fiscal  treatment  and  general  employment  rules  and  conditions.  In 
many cases, the cars are procured through leasing. 

•  Leasing  –  companies  leasing  cars  to  other  companies  (large  as  well  as  SMEs)  and 
private  individuals,  and  leasing  vans  to  other  companies.  This  category  overlaps  with 
some  of  the  others,  as  for  example  company  cars  and  vehicles  used  in  true  fleets  are 
often procured through leasing.   

•  Rental  – companies renting  cars to  other companies or private individuals. While car 
rental is mostly touristic or business, van rental typically offers a logistics and mobility 
option for companies. 

•  True  fleets  –  vehicles  registered  by  companies  and  used  for  their  own  commercial 

activities, include different types of vehicles, entities, and business cases, such as: 

o  Urban  mobility  service  car  fleets  –  taxis,  ride-hailing,  car  sharing  –  excluding 

scheduled public transport;  

o  Large fleets  of logistics vans – last-mile and urban delivery fleets  operated by 

postal services, e-commerce, large retailers etc.; 

o  Service cars and vans – vehicles used to transport personnel and equipment, as 
well as to  provide services operated by e.g. engineering or telecom  companies 
for their repair works, or individual vehicles registered by service providers; 

3 With the exception of inter alia ambulances, fire trucks, etc. 

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o  Buses  and  coaches  –  almost  exclusively  registered  by  legal  entities,  including 
urban buses which are mostly used by public authorities and entities subject to 
public  procurement  rules  and  to  the  mandatory  targets  for  zero-emission 
vehicles under the Clean Vehicles Directive, while coaches are operated by both 
public  and  commercial  entities  as  they  drive  peri-urban  and  interurban 
scheduled public transport, long-distance interurban passenger transport, as well 
as tourist services;    

o  Trucks – almost exclusively registered by legal entities, includes large logistics 
companies,  freight  buyers  and  others  operating  fleets  of  hundreds  of  trucks  to 
micro- and SMEs operating a single truck.   

•  Vehicles  registered  by  manufacturers  themselves  –  e.g.  salon  and  test  vehicles; 
unlike  other  types  of  corporate  fleets,  these  vehicles  are  more  directly  influenced  by 
general market trends (including in private sales) than by other specific factors. 

3.  WHY ACTION IS NEEDED 

The  CO2  standards  for  cars  and  vans  as  well  as  for  heavy  duty  vehicles  require  a  gradual 
increase in the registrations of zero-emission vehicles. Sales of battery-electric vehicles (BEVs) 
in the EU have been continually rising until the beginning of 2024. In 2023, the share of new 
battery-electric car sales reached 14.6%. This was spurred by better environmental awareness, 
expanded model offerings, and government incentives.  

However, the growth curve required for compliance with the CO2 standards by 2030 is steep. 
There was a slight decrease in sales in 2024, with registration shares of electric cars dropping 
by  one  percentage  point  to  13.6%  on  the  EU  market.  Other  zero-emission  vehicles  such  as 
hydrogen fuel cell vehicles are still in very early market stage.  

Several  factors  can  explain  the  market  developments  in  2024.  For  example,  there  was  a 
discontinuation of subsidies in some major markets at the end of 2023. The overall difficulties 
for general automotive sales, driven by the difficult economic context conditions in the EU, is 
also a likely factor.  

In  this  context,  corporate  vehicle  registrations  play  an  important  role,  being  responsible  for 
about 60% of all new car registrations in the EU. Fleet operators, and particularly larger ones, 
are often in a better position to negotiate prices for vehicle purchase and may also benefit from 
various  fiscal  incentives  -  such  as  favourable  tax  depreciation  rules  -  VAT  deduction  or 
favourable  benefit-in-kind  treatment.  This  is  the  case  for  example  for  car  leasing,  which  is  a 
consolidated  market,  dominated  by  a  relatively  small  number  of  large  operators  that  are 
responsible for around 3 million new vehicle registrations per year (approximately 30% of new 
car sales).4  

Available  data5  suggests,  however,  that  this  potential  is  not  fully  activated  at  an  average  EU 
level: the zero-emissions vehicle share in corporate car fleets has been lagging behind the share 
in sales to private individuals in the past years. The respective shares for 2023 were 12.3% in 

4 There is a certain level of overlap between this and other categories of corporate fleets, as e.g. company cars or 
true fleets are often procured through leasing 
5 Dataforce (2024) 

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corporate  compared  to  14.1%  in  private  this  has  narrowed  slightly  to  12.4%  compared  to 
13.8% in 2024.  

In  2024,  the  number  of  zero-emission  light  commercial  vehicles  (vans),  buses,  coaches,  and 
trucks  across  the  EU  has  continued  to  climb  steadily  compared  with  2023,  but  with  uneven 
situation.  Van  sales  grew  overall,  and  zero-emission  van  had  a  share  of  6.1%  of  new 
registrations.  The  bus  and  coach  segment  has  also  continued  its  upward  trend,  with  overall 
sales  growing  and  electric  buses  accounting  for  18.5%  of  all  registrations,  or  more  than  one 
third  of  new  urban  buses.  Although  still  a  very  small  market  overall,  new  sales  of  zero-
emission  trucks  have  recorded  a  growth  of  about  10%  from  2023  levels,  and  recorded  a 
registration share of 2.3% in new truck sales.  

When looking at single Member State markets, large variations in the share of zero-emission 
vehicle  registrations  show  up,  also  because  of  corporate  fleets:  for  example,  Germany  saw 
BEV car sales dropping by 27% in 2024, while Belgium saw an increase of 37%, and the latter 
market  action  is  largely  driven  by  corporate  car  fleets  following  changes  to  the  national 
taxation scheme. This underlines the need to look at all factors that influence the decisions of 
corporate  fleet  managers  to  purchase  zero-emission  vehicles,  including  model  availability, 
model  price,  availability  of  recharging  infrastructure,  national  taxation,  other  fiscal  and  non-
fiscal incentives (e.g. urban access rights) and other regulatory requirements.  For example, in 
the  case  of  true  fleets,  operational  requirements  (e.g.  the  need  to  operate  for  long  hours  and 
distances with limited time to recharge), the availability of dedicated recharging infrastructure, 
and  specific  conditions  such  as  the  need  to  access  low-emission  zones  or  to  comply  with 
requirements  to  obtain  a  licence,  often  represent  the  main  factors  determining  the  choice  of 
vehicle to be used.   

4.  CHALLENGES AND OPPORTUNITIES 

In  order  to  proceed  with  the  suitable  actions  to  boost  the  uptake  of  zero-emission  vehicles 
towards 2035, it is important to take into account the fact that the challenges for decarbonised 
corporate fleets vary according to the use cases and their characteristics. 

Leasing  fleet  operators  are  increasingly  including  zero-emission  cars  into  their  fleets. 
However,  according  to  the  sector,  slowly  changing  customer  preferences  and  perceived 
concerns  about  seamless  recharging  experience  prevent  a  faster  switch  to  zero-emission 
vehicles.  Leasing  fleet  operators  also  point  to  high  purchase  prices  and  uncertainties  about 
residual values of zero-emission vehicles and demand on the second-hand market, which can 
have an impact  on the risk assessment of the companies  . They  also  emphasise  incentives of 
fiscal treatment of the leased vehicles, which on many occasions still favour the purchase of a 
conventional vehicle.  

Rental  fleet  operators  note  persistent  problems  with  offering  zero-emission  cars  in  large 
number for rent. They indicate that this is due to lack of customer interest, particularly on very 
short-term  rental,  uncertainties  about  residual  value  and  customer  demand  for  second-hand 
zero-emission  vehicles,  and  a  general  lack  of  suitable  fast-recharging  infrastructure  at  rental 
hubs, for example at airports and other mobility hubs.  

Customer  preference,  model  availability  and  price,  concerns  about  recharging  infrastructure 
and fiscal treatment of the vehicles, and uncertainties about demand on the second-hand market 
are  reported  to  be  among  the  main  factors  influencing  the  choice  of  vehicles  also  for  van 
rental and leasing.  

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Zero-emission  trucks  present  a  significantly  higher  purchase  cost  compared  to  conventional 
ones; the availability of fast recharging infrastructure is rapidly increasing, but operators often 
still hesitate to switch to electric options, especially for long-haul operations. Truck operators 
need  to  be  able  to  install  recharging  infrastructure  in  their  depot,  to  have  access  to 
infrastructure  allowing  sufficient  recharging  compatible  with  the  truck’s  operational  needs 
during the mandatory breaks. The average age of trucks in the EU is about 14 years, and the 
first owner typically operates the truck for 5 years. The used market for trucks is about double 
the  size  of  the  new  market,  with  a  clear  dynamic  of  first  use  in  North  and  Western  Europe, 
while second or third-life is with users in Southern and Eastern Europe. 

The  consolidated  actor  structure  of  the  car  leasing  sector  and  its  significant  overlaps  with 
other  types  of  corporate  fleets  would  make  initiatives  targeting  zero-emission  leasing  cars 
relatively  straightforward  to  implement  and  potentially  highly  effective.  Leasing  can  also 
represent  a significant  opportunity to overcome the barrier of high  purchase  costs preventing 
access to those vehicles for lower income users, and can support a wide second-hand market.    

Short-rental cars are usually among the fastest to reach the second-hand market – often within 
one  or  two  years.  This  provides  an  opportunity  to  rapidly  increase  the  availability  of  zero-
emission vehicles on the second-hand market through initiatives targeting this type of corporate 
fleet, especially if accompanied by measures supporting the purchase of zero-emission second-
hand vehicles. Increasing the offer of zero-emission rental car options would offer significant 
benefits in terms of emission reductions, given their high yearly mileage.  

A  faster  shift  to  zero-emission  rental  and  leasing  vans  would  present  an  opportunity  to 
overcome  the  initial  high  purchase  cost  of  electric  vans  and  allow  the  decarbonisation  of 
transport  operations  of  many  small  and  medium  businesses.  Given  the  relatively  high  yearly 
mileage  of  this  type  of  vehicle,  a  faster  shift  to  zero-emission  would  also  bring  significant 
benefits in terms of emission reductions. 

In general, for company cars, it is the fiscal treatment that is the main lever determining the 
choice  of  vehicles,  offering  a  significant  opportunity  to  accelerate  the  shift  to  zero-emission 
vehicles through fiscal interventions.  

As corporate fleets allow for aggregation  and generally  have predictable charging behaviour, 
they are highly relevant for bi-directional charging functionalities. By injecting electricity back 
into the grid, vehicle-to-grid (V2G) will generate incomes from these flexibility services.  

5.  GOOD PRACTICES AND PRIORITIES FOR ACTION  

The  Commission  carried  out  an  Open  Public  Consultation  on  Greening  Corporate  Fleets  in 
2024.6  The  Open  Public  Consultation  covered  cars,  vans,  trucks  and  coaches.  267  responses 
were received from various stakeholders – mainly businesses and business associations (72% 
of responses), followed by NGOs (11%), citizens (9%) and public authorities (3%). It showed a 
clear  consensus  about  the  desirability  of  a  faster  penetration  of  zero-emission  vehicles  in 
corporate fleets. The Open Public Consultation also confirmed the view that a higher share of 
zero-emission  vehicles  in  corporate  fleets  would  be  beneficial  in  terms  of  GHG  emissions 
reduction  and  built  up  of  second-hand  car  markets,  improving  the  affordability  of  zero-
emission  vehicles.  But  it  also  noted  to  ongoing  problems  and  challenges,  including  higher 

6 OPC - Greening corporate fleets  

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purchase  cost,  risks  related  to  residual  values  and  lack  of  availability  of  vehicles  (mostly 
heavy-duty).   

The  consultation  clearly  pointed  out  that  costs  (purchase,  operational  and  total  cost  of 
ownership)  are  defining  the  purchase  decisions  of  corporate  vehicle  fleet  operators.  Fiscal 
treatment (in income, corporate and vehicle registration tax, annual vehicle circulation tax and 
fiscal treatment of specific vehicles, e.g. company cars as benefit-in-kind) was widely regarded 
as  a  key  factor  across  all  types  of  fleets.  Fiscal  measures  were  consistently  identified  as  the 
most effective way to achieve such a faster shift, across all types of corporate fleets.  

Good practice example – Adjustments to the tax system 

An  example  of  how  the  tax  system  can  be  adjusted  to  increase  the  share  of  zero-emission 
corporate  vehicles  is  Belgium,  which  has  reformed  its  company  car  scheme  as  of  2021  to 
promote the adoption of zero-emissions vehicles and reduce the tax advantages for traditional 
internal combustion engine (ICE) vehicles and plug-in hybrid electric vehicles (PHEVs)7. The 
main levers were: 

- 

changes  to  the  tax  deductibility  of  vehicle  costs,  progressively  limiting  the 
deductibility  of  all  costs  for  non  zero-emission  vehicles,  acquired  between  1 
July 2023 and 31 December 2025, to reach 0% by 2028 and the fuel expenses 
(petrol  or  diesel)  of  fuels  used  in  a  PHEV,  acquired  from  2023  onwards  to 
50%,  while  100%  deductibility  remains  for  zero-emissions  vehicles  and  for 
electricity usage;   

-  modification  of  the  reference  CO₂  emission  values  used  to  calculate  the 
taxable  benefit-in-kind  for  private  use  of  company  cars  to  reflect  the 
decreasing average emissions of newly registered cars in Belgium.  

While  the  reform  is  being  gradually  rolled-out,  since  2024  Belgian  sales  of  zero-emissions 
vehicles have drastically increased, roughly tripling over the course of two years and making 
Belgium  the  third  biggest  market  in  Europe  for  zero-emission  vehicles,  in  total  sales. 
Charging infrastructure expanded massively in Belgium in the past three years, even quicker 
than vehicle sales, with fast charging increased nearly 10-fold. The Belgian example shows 
that a  targeted focus to modification of existing fiscal  measures  can  have a significant 
effect on the total market. 

Some  Member  States  introduced  accelerated  depreciation  measures  as  an  incentive  for  the 
acquisition  of  electric  vehicles.  One  of  the  good  examples  is  Spain,  where  newly  acquired 
clean  vehicles  and  charging  stations  for  such  vehicles  can  be  freely  depreciated8,  if  used  for 
economic activities. The free depreciation is available for tax periods beginning on or after 1 
January 2024 and applies to new investments that begin in the tax periods starting in 2024 and 
20259. 

7 "Loi du 25 novembre 2021 organisant le verdissement fiscal et social de la mobilité" officially entered into force 
in January 2023. 
8 In 2023 the newly acquired electric vehicles could benefit from the accelerated depreciation with a doubled 
standard rate.  
9 Spain, Royal Decree Law 4/2024  

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Another example is Czechia, where clean vehicles acquired and put in use in the period from 1 
January  2024  until  31  December  2028  can  be  depreciated  in  2  years.  The  depreciation  is 
limited to  60% of the  acquisition price in  the first  12 months and up to  40% for the next  12 
months10. 

The outcomes of the  Open Public Consultation are  consistent  with  available information  and 
market  analysis  showing  that  corporate  vehicle  taxation  regimes  are  highly  impactful. 
Experience  shows  that  revisions  to  the  taxation  framework  to  ensure  a  more  equal  or 
favourable  footing  of  zero-emission  vehicles  in  corporate  fleets,  or  introduction  of  other 
incentives  such  as  malus  or  bonus/malus  schemes  providing  more  favourable  treatment  to 
lower emitting vehicles than to higher emitting ones, can result in a surge in new zero-emission 
corporate vehicle registrations.  

In  addition,  the  consultation  pointed  out  special  support  schemes  and  operational  incentives 
(exemptions  from  access  restrictions,  road  charging,  tolling  or  parking  conditions  as  well  as 
social  leasing  schemes  including  an  Ecoscore,  etc.)  as  effective,  in  particular  for  rental  and 
leasing fleets, large logistics fleets, urban mobility fleets and company cars.  

Good practice examples - taxi regulations for zero-emissions vehicles 

There  are  several  examples  in  Europe,  where  city  or  regional  authorities  have  enacted 
dedicated  regulations  requiring  zero-emissions  operations  by  taxi  fleets,  to  align  with  their 
climate and air quality plans. 

Hamburg  has  set  a  specific  goal  for  taxi  operations:  newly  registered  taxis  should 
increasingly be zero-emission so that by 2030, the entire taxi fleet operating in Hamburg will 
follow  suit.  This  will  be  achieved  primarily  through  the  licensing  process,  where  taxi 
operators must demonstrate compliance before receiving or renewing their operating licenses. 
Hamburg is also providing financial support, such as subsidies for purchasing zero-emission 
vehicles and installing adequate charging or hydrogen-refuelling infrastructure.  

In Amsterdam, all taxis operating in the restricted areas of the city centre are expected to be 
zero-emission  by  2025,  and  after  that  date,  new  taxi  permits  will  only  be  granted  to  zero-
emission vehicles. By 2030, the city intends to extend this requirement to all taxis operating 
throughout  the  municipality.  To  help  taxi  operators  transition,  the  local  government  offers 
subsidies and other forms of support, while also working to establish a robust charging and 
fuelling  infrastructure,  with  a  focus  on  expanding  fast-charging  points  in  high-demand 
locations like Amsterdam Central Station and Schiphol Airport.  

The consultation also underlined the availability of recharging and refuelling infrastructure as a 
key influencing factor. While the mandatory targets set in the Alternative Fuels Infrastructure 
Regulation11  will  ensure  a  sufficient  coverage  across  the  Member  States,  and  in  particular 
along the TEN-T, the exact location, number and power outputs of individual recharging points 
at specific locations will be determined locally.  

10 Section 30a(1) of the Act. 1 of Act No. 586/1992 Coll., on Income Taxes, as amended 
11 Regulation (EU) 2023/1804 

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The availability of the right number and type of recharging points at  some of these locations 
will  be  crucial  to  meet  the  specific  requirements  of  certain  types  of  corporate  fleets;  for 
example,  taxi  and  ride-hailing  fleets  depend  on  publicly  accessible  recharging  points  in  the 
urban  areas  where  they  operate,  while  rental  car  fleets  operating  at  airports  often  require 
dedicated  recharging  infrastructure,  but  depend  on  the  airport  for  their  deployment.  On  the 
other hand, some fleets such as public transport bus fleets tend to rely exclusively on their own 
dedicated infrastructure, either at depots or for opportunity charging at bus stops.  

Trucks use depot charging as the primary option, but especially for long-haul operations they 
need  access  to  sufficiently  fast  charging  infrastructure  to  meet  their  operational  needs  by 
recharging during the mandatory breaks. As announced in the Action Plan on Automotive, the 
Commission will work on a European Clean Corridor initiative to fast-track the deployment of 
HDV  charging  hubs  along  key  logistics  corridors  in  the  TEN-T  as  critical  infrastructure,  by 
streamlining  of  permitting  and  leveraging  financing  to  de-risk  investments,  linking  to  the 
provisions for specific grid priority areas under the Renewable Energy Directive. The initiative 
will bring together fleet operators, charge point operators, electricity grid operators and public 
authorities as appropriate in the context of the respective TEN-T corridor and thus serve as a 
useful platform for both  raising awareness  of needs of all involved actors as well as creating 
confidence  among  corporate  fleet  operators  on  the  feasibility  of  seamless  longer-distance 
operations.  

Good practice examples – recharging points at airports 

Zaventem Airport, in Brussels, has deployed 750 recharging points for passengers and staff in 
its  parking  areas  The  deployment  of  several  hundred  additional  recharging  points  at  Paris 
airports (Orly and Charles de Gaulle) has been announced by the end of 2025, covering more 
than 600 slow recharging points at the public parking areas as well as fast recharging points to 
meet the requirements of rental companies and taxi drivers, and ultra-fast chargers available for 
different  users.  Making  sufficiently  fast  recharging  options  available  to  rental  car  fleets  and 
taxis at locations such as airports or other mobility hubs is crucial to allow the transition of this 
type of fleet to electric vehicles; this can in turn contribute to making the overall operation of 
the airport more sustainable. 

Good practice examples – island electrification in Greece 

Astypalaia, a Greek island in the South Aegean, is undergoing a pioneering transformation into 
a  “Smart  &  Sustainable  Island”  through  an  ambitious  collaboration  between  the  Greek 
government and Volkswagen Group. Initiated in 2020 and rolled out from early 2021, the pilot 
project  aims  to  replace  the  island’s  conventional  fleet  with  electric  vehicles  alongside 
implementing e-scooters, e-bikes, and a new on-demand ride-sharing service utilising electric 
vehicles.  Charging  infrastructure,  once  sparse,  has  expanded  considerably,  while  solar  farms 
are  being  built  to  supply  the  growing  number  of  EVs  with  clean  energy.  The  initiative  has 
garnered  significant  attention,  demonstrating  how  smaller,  diesel-reliant  islands  can  shift 
toward  renewable  energy  and  carbon-neutral  mobility.  Astypalaia’s  ongoing  initiatives 
highlight its transition to sustainable tourism, offering a real-world example of how e-mobility, 
renewable  energy,  and  modernized  public  transport  can  create  a  low-impact,  future-focused 
travel destination. 

8 

 
 
 
 
 
6.  WHAT CAN BE DONE TODAY 

The  automotive  market  needs  demand  strengthening  now.  There  are  several  actions  that  can 
already be taken today by different actors at the European, national, regional and local level, to 
accelerate  the  transition  to  zero-emission  vehicles  in  corporate  fleets.  These  actions  will 
complement  and  anticipate  the  legislative  proposal  that  the  Commission  is  preparing  for  end 
2025  that  will  look  at  all  policy  options  to  increase  the  uptake  of  zero-emissions  vehicles  in 
corporate fleets.  

6.1. Making zero-emission vehicles more attractive through fiscal policy  

Currently,  Member  States  are  supporting  the  company  car  market  with  more  than  EUR  40 
billion  annually  through  subsidies  or  fiscal  treatment  (reductions  or  exemptions  from 
registration  tax,  annual  vehicle  tax,  etc.),  with  most  of  that  amount  used  for  conventional 
vehicles12. While the situation is varied across Member States, with state support ranging up to 
substantive  amounts  such  as  EUR  16  billion  per  year  in  Italy,  some  element  of  support  is 
prevalent in most Member States.  

At present,  there  are subsidies  and fiscal  regimes that do  not  support  the  switch of corporate 
fleets  to  zero-emission  vehicles  in  quite  a  few  Member  States  –  in  some  the  taxes  or  tax 
benefits are similar, so that the higher purchase price disincentives the zero-emission vehicles, 
whereas  in  some  others  higher  tax  benefit  apply  to  purchasing  and  operating  a  conventional 
vehicle.  

Changing  these  fiscal  regimes  can  have  a  quick  and  decisive  role  in  the  transition  to  zero-
emissions vehicles in corporate fleets, as the fiscal treatment of different vehicles is one of the 
main drivers influencing operators’ choices. It can potentially offer the possible advantage of 
having  lower  public  budgetary  implications  as  compared  to  direct  purchase  subsidies,  as  this 
could  entail  a  more  targeted  use  of  existing  fiscal  provisions  in  favour  of  zero-emission 
vehicles.  

Action should be  taken  to make  systems more favourable to  zero-emission options, by either 
reducing  comparative  benefits  for  conventional  vehicles  or  improving  the  treatment  of  zero-
emission  vehicles.  The  benefits  of  targeted  changes  to  fiscal  treatment  of  conventional 
corporate vehicles are highly visible in  Belgium, as detailed in the example presented above. 
This  can  also  be  achieved  in  the  field  of  VAT  by  modifying  the  VAT  Directive  in  order  to 
reduce the right to deduct input VAT for conventional vehicles. When revising such measures, 
it is important to include criteria to safeguard supply chain resilience and sustainability, such as 
for  example  rules  of  origin,  circularity  and  sustainability  criteria,  as  described  in  the 
Automotive Action Plan.  

In  this  context,  the  Commission  also  recalls  that  EU  State  aid  rules  offer  wide  and  flexible 
opportunities  for  Member  States  to  support  activities  contributing  to  the  uptake  of  zero-
emission vehicles, including by reducing taxes for the purchase or leasing of such vehicles, as 
well as supporting  the necessary recharging and  refuelling  infrastructure.  The Commission  is 
hence encouraging Member States to make use of such opportunities. 

Such fiscal  measures could  be complemented by  extended use of  available options under the 
Eurovignette Directive whereby road usage instruments where zero-emission vehicles could be 
exempted  and  by  using  the  revenue,  such  as  road  tolling  or  road  charging,  to  support  the 

12 Company car fossil fuel subsidies in Europe, T&E 2024 

9 

 
 
 
decarbonisation  of  the  road  transport  sector,  including  through  investing  into  recharging 
infrastructure. This is described further in the Automotive Action Plan.  

When public authorities have measures in place favouring the provision of company cars (e.g. 
through taxation), the Commission  invites them to  ensure that these are formulated in  a way 
that  creates  an  incentive  to  choose  zero-emission  vehicles  over  conventional  ones,  and  that 
criteria  are  included  that  ensure  the  sustainability  and  European  supply  chain  resilience,  in 
line with the Automotive Action Plan. The Commission also  encourages public authorities to 
consider  similar  measures  also  for  other  types  of  corporate  fleets,  and  to  use  part  of  the 
revenue  raised  from  road  usage  instruments  for  public  support  infrastructure  for  recharging 
and  refuelling.  The  Commission  will  also,  as  part  of  its  green  VAT  initiative  scheduled  for 
2026, consider a progressive removal of the VAT deduction related to conventional vehicles. 

6.2.  Possibilities at local level with urban mobility services’ fleet 

Urban  mobility  services’  fleets,  such  as  taxis,  ride-hailing  and  car-sharing  fleets,  represent 
another type of corporate fleet with a strong link with local and urban mobility. They typically 
operate based on licences granted at local level, which set conditions for their operation. Many 
operators  of  these  types  of  fleets  have  expressed  their  intention to  play  a  positive  role  in  the 
decarbonisation  of  road  transport.  Due  to  their  business  model,  area  of  operation  and 
operational  requirements,  the  choice  whether  to  switch  to  zero-emission  vehicles  is  highly 
dependent on conditions set directly or indirectly by local authorities.  

In  particular,  access  to  recharging  infrastructure  meeting  the  operational  requirements  of  the 
urban mobility fleet is often identified as a key factor. This can take the form both of publicly 
accessible slow recharging points for overnight charging in the case of drivers who do not have 
a  garage  and  rely  on  street  parking,  and  of  fast  recharging  points  allowing  a  quick  top  up 
during short breaks in the daily operation. Another key element is the provision of operational 
incentives such as allowing zero-emission urban mobility service fleets to use dedicated lanes 
or  providing  easier  access  to  parking.  The  existence  of  zero-  and  low-emission  zones  can 
represent a key factor accelerating this transition, as the need to access those areas will make 
the choice of a zero-emission vehicle significantly more attractive.  

In addition to creating more favourable conditions for zero-emission vehicles in urban mobility 
fleets, local and regional authorities can play a more direct role in accelerating the transition by 
setting  requirements  for  the  share  of  zero-emission  vehicles,  including  sustainability  and 
supply chain resilience criteria, as a condition for the granting of licences and concession for 
their operation.  

Public transport authorities and operators are at the forefront of the transition to zero-emission 
fleets.  In  2024,  every  third  new  urban  bus  registered  in  the  EU  was  battery  electric, 
representing  the  highest  share  of  new  zero-emission  vehicles  in  corporate  fleets,  but  public 
authorities face budgetary constraints in the purchase of further zero-emission buses; it will be 
crucial to ensure that the right conditions are in place to allow them to keep investing in this 
solution in the coming years. 

The Commission invites local and regional authorities to include requirements on the share of 
zero-emission vehicles in the licencing process for local private fleets such as taxi, ride-hailing 
and  car-sharing  fleets  including  criteria  to  ensure  the  sustainability  and  supply  chain 
resilience in line with the Automotive Action Plan, to provide enabling conditions and ensure 
an  appropriate  offer  of  recharging  infrastructure,  and  to  envisage  local  incentives  such  as 
privileged  access  to  parking  spaces  or  use  of  dedicated  lanes  to  make  the  services  offered 
through  zero-emission  vehicles  more  attractive.  The  Commission  also  encourages  national 

10 

 
 
authorities  to  support  this  effort  by  setting  more  favourable  fiscal  conditions  for  corporate 
zero-emission  vehicles  compared  to  corporate  conventional  vehicles,  and  by  providing 
financial  support  and  incentives  for  public  transport  authorities  and  operators  switching  to 
zero-emission buses.  

6.3. Rental companies: airport trailblazers 

Vehicles used in short (few days to few weeks) rentals, such as the ones from rental fleets at 
hubs such as airports and rail stations, can be particularly effective in reaching a high number 
of  private  drivers,  increasing  visibility  of  zero-emission  solutions,  offering  an  opportunity  to 
try a new powertrain, and addressing existing user concerns such as range anxiety.   

Furthermore, the presence of a fleet of electric rental vehicles at airports or other mobility hubs 
will  encourage  a  faster  deployment  of  public  and  private  recharging  infrastructure  (e.g.  in 
hotels, conference centres, touristic areas) in the area served by that airport, which in turn will 
further  increase  visibility  and  facilitate  a  faster  uptake  of  zero-emission  vehicles,  while  also 
promoting sustainable tourism.  

On the other hand, the capacity of airport rental fleets to switch to zero-emission vehicles can 
be limited by local factors, such as availability of recharging infrastructure. 

When  switching  to  electric  vehicles,  meeting  some  of  these  operational  requirements  will 
require additional effort in the short term. The current fast turnaround between rentals cannot 
be  ensured  with  slow  charging  only;  to  avoid  significantly  longer  waiting  times  between 
rentals, the use of fast chargers will be required. It also seems likely that more vehicles would 
be returned with the battery less than completely full, due to the current comparatively limited 
availability  of  recharging  infrastructure  in  the  vicinity  of  the  airport;  more  vehicles  will 
therefore need to be recharged at the car rental facilities. 

Companies operating large airport rental fleets will therefore require multiple fast or ultra-fast 
charging  points,  and  an  upgrading  of  their  electricity  grid  connection  to  ensure  the  required 
power  output;  the  need  to  upgrade  the  electricity  grid  connection  will  be  even  more  relevant 
when multiple rental companies operate at the same facilities – as is the case at most airports. 
The  deployment  of  recharging  infrastructure  at  the  airport  facilities  where  the  rental  cars 
operate  is  usually  not  under  the  direct  control  of  those  companies  but  needs  to  be  ensured 
through the airport. 

A coordinated approach involving the airport and the different rental companies operating on 
its  premises  therefore  represents  a  way  forward  to  accelerate  the  deployment  of  recharging 
infrastructure and zero-emission vehicles in rental fleets. 

By Q3 2025, the Commission will launch an initiative aimed at accelerating the deployment of 
zero-emission vehicles in selected airport rental fleets, based on voluntary commitments by the 
participating  airports  and  the  participating  rental  companies,  to  secure  upgraded  electricity 
grid  connections  and  facilitate  the  deployment  of  recharging  infrastructure  used  by  rental 
companies on airport premises. In a second step, other mobility hubs like railway stations may 
be considered. 

7.  NEXT STEPS 

Increasing the share of zero-emission vehicles in corporate fleets can bring significant benefits 
in  terms  of  emission  reductions,  competitiveness  for  European  OEMs  and  –  if  accompanied 
11 

 
 
 
with adequate policies13– also in terms of fairness of the climate transition.  There are actions 
that  can  already  be  taken  now  on  national,  regional  and  local  level  for  different  types  of 
corporate  fleets  and  bring  immediate  benefits,  but  a  legislative  initiative  can  provide  the 
necessary legal framework in the longer term across the whole automotive sector.  

In  the  preparatory  work  for  the  legislative  initiative  to  be  presented  by  the  end  of  2025,  the 
Commission  will  build  on  the  outcomes  of  the  Open  Public  Consultation  on  the  overall 
problems and suitability of possible measures that the Commission carried out already in 2024.  

In that consultation, no clear consensus emerged as regards the scope and type of measure for a 
possible  European  initiative.  The  results  of  the  Open  Public  Consultation,  as  well  as  the 
outcomes of the Automotive Dialogues carried out in the last month, underline the relevance of 
an  ongoing  dialogue  with  relevant  stakeholders.  This  is  why,  in  addition  to  the  Impact 
Assessment  procedure  for  the  proposal,  the  Commission  will  launch  a  high-level  dialogue 
with relevant stakeholders, starting as of Q2 2025, to discuss relevant measures and options for 
action  on  corporate  fleets,  as  well  as  market  dynamics  and  needs.  This  will  provide  the 
possibility for further exchange and collaboration on activating all  relevant  actors  at national 
and European level for an accelerated uptake of zero-emission vehicles in corporate fleets.  

In the preparation of the legislative initiative, the Commission will look into different aspects, 
including  the  type  of  entities,  vehicles  and  fleets  to  be  prioritised,  the  level  of  ambition,  the 
impact on air pollution, the territorial dimension, assessing technologies and the impact of mass 
and  volumes  on  emissions  as  well  as  the  need  to  ensure  competitiveness  while  reducing 
reporting and administrative burdens for enterprises and especially SMEs – which represent the 
majority  of  actors  for  some  types  of  corporate  vehicles  –  in  line  with  the  priorities  of  the 
Competitiveness Compass.  

It  is  important  that  the  options  take  due  account  of  regional  and  other  specificities  and 
acknowledge that any such measures must go hand in hand with appropriate incentives and the 
overall financial capacity for the roll-out of adequate recharging infrastructure.  

Uptake of zero-emission vehicles in corporate fleets will be helped by other action to address 
the most effective use of purchase support at national level.  In line with action announced in 
the  Commission’s  Automotive  Action  Plan  the  Commission  intends  to  work  closely  with 
Member States on fiscal regimes and incentives for company cars, including on alignment on 
possible  approaches  and  common  criteria  (e.g.  sustainability  and  resilience)  for  national 
incentives  for  corporate  fleets.  It  is  essential  that  Member  States  start,  where  relevant,  swift 
action to create favourable fiscal conditions for zero-emission vehicles.  

13 Including fiscal and social policies in line with the Council Recommendation of 16 June 2022 on ensuring a fair 
transition towards climate neutrality. 

12