Electrification of Company Cars & Tax Reform Needed in France

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Electrification of Company Cars & Tax Reform Needed in France
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How to reduce CO2 emissions from commercial fleets through taxation.

The company vehicle fleet is both one of the main emission factors in France and a promising path for zero-emission transport. Often overlooked as a source of on-road emissions, company vehicle fleets account for half of new passenger car registrations each year. Since they travel nearly twice as many kilometers per year as passenger cars, they are responsible for two-thirds of the CO2 emissions of newly registered vehicles, or 2% of total greenhouse gas emissions. greenhouse in France.

At the same time, sales of polluting plug-in hybrid electric vehicles are booming in commercial fleets. The company vehicle market represents three quarters of all ORVs. ORVs are eligible for renewal rates as low-emission cars despite studies showing that these vehicles emit between two to four times the publicly displayed amounts of CO2. By considering ORVs as low-emission cars, French law creates a windfall effect for this market and jeopardizes the climate benefits of this law.

The tax advantage that companies receive for company cars in the form of depreciation reaches up to 4,500 euros for a polluting car. Consequently, the tax advantages for polluting cars represent 2.72 billion euros of public expenditure each year . Following the example of Belgium, T&E recommends an abolition over five years of depreciation deductions for polluting cars.

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