A leading environmental advocacy group, Transport & Environment (T&E), is urging the European Union to adopt significantly tighter emissions regulations for corporate vehicle fleets, arguing that current proposals fall short of climate goals. In a position paper released this week, T&E called for ambitious targets for zero-emission vehicles in company car and van fleets across the bloc.
The group wants zero-emission vehicles, including battery-electric and hydrogen models, to make up 69% of corporate fleets by 2030 — a substantial increase from the roughly 45% share currently projected under the European Commission’s proposal.
Excluding Low-Emission and Plug-In Hybrids
T&E has also recommended that low-emission vehicles and plug-in hybrid electric vehicles (PHEVs) be excluded from the EU’s quota system for corporate cars and vans. The group argues that plug-in hybrids often emit more pollution in real-world conditions than official tests indicate, particularly because company drivers may rely on fuel cards rather than using electric mode.
According to T&E, corporate fleets make up a major portion of vehicle sales in the EU, accounting for about 60% of new passenger car sales and 90% of new van sales. Stricter rules for fleets, the group says, could therefore have a large impact on emissions and help accelerate the transition to cleaner transport.
Ending Fossil Fuel Subsidies and Shifting Incentives
In addition to tougher quota targets, T&E is advocating for an end to €42 billion in annual subsidies for petrol and diesel company cars. The group proposes that tax breaks be limited to electric vehicles produced in Europe, a move it believes would strengthen the domestic EV industry.
T&E says that stricter corporate fleet regulations could boost sales of EU-made electric vehicles to 1.9 million units by 2030, compared with around 1.2 million under the current approach put forward by the European Commission. The group describes its recommendations as crucial to meeting broader EU climate objectives.
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