Tag Archive: European subsidies

  1. Austria launches folding e-bike funding plus tighter e-scooter regulations in Vienna

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    Austrian policy developments across the light electric mobility experience

    Source: SAZ Bike, TheMayor.eu

    Electric drive folding bikes are now included, for the first time, in a subsidy initiated by the Ministry of Climate Protection, in cooperation with the sports retail trade. Private individuals, companies, clubs and communities may now benefit from funding up to 600 Euros (450 Euros via the Ministry of Climate Protection and 150 Euros from the sports retail trade) towards folding electric or non-electric bikes, plus one bicycle service. Live since March 1 of this year, the initiative aims to make cycling more attractive to a wider group of riders, especially where folding e-bikes are more adaptable to multi-modal and public transportation. Indeed, for private individuals to be eligible for the subsidy, they need to show possession of an annual ticket for public transit. The folding bike itself must also be under 110 x 80 x 40cm folded.

    Austria has seen further regulatory developments this month in the form of an announced overhaul of e-scooter regulations in Vienna. The main change will see the city set up 200 designated parking spaces for electric scooters, making it impossible to end your ride unless you park in an official space. The move is intended to better control pavement parking, and parking spaces will be situated on the road, next to WienMobil bike stations. Sites can park 8 to 10 scooters and there will be a parking ban with a radius of 100 metres around them. Outside of these stations, riders are instructed to park between cars.

    Vienna already enacted a 500 scooter cap in its central zone and a 1,500 cap in districts 2 through 9 and 20, and in the future intends to designate red zones around hospitals, markets and other hotspots, where scooters will not work and parking violations will be enforced.

  2. Portugal becomes the first EU country to reduce VAT on bicycle purchases

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    Source: Cycling Industry News, S. Cox

    The European Cyclists’ Federation has reported that Portugal has inscribed an amendment to the 2023 state budget, reducing VAT on bicycle sales.

    The stated goal of increasing cycling modal share to 10% by 2030 is the driving force for the move, resulting in customers being able to save hundreds of Euros when purchasing bicycles.

    This comes 1 year after the EU passed legislation enabling member states to apply reduced VAT rates on the supply, rental, and repair of bicycles, including e-bikes, with Portugal becoming the first country to make use of this possibility.

    Portuguese consumers will now be able to buy bicycles at the lowest VAT rate of 6% starting from 1 January 2023. The savings potential is important: for the purchase of an e-bike costing €2,000 under the current standard VAT rate, consumers would save almost €300 (under the assumption that manufacturers and outlets fully pass on the reduction).

    The amendment to the 2023 state budget was justified specifically with the goal that is inscribed in the Portuguese national cycling strategy of reaching a cycling modal share of 4% by 2025 and 10% by 2030. The explanatory text states: “Such an ambition, essential for the protection of the environment, the reduction of fossil fuel consumption, people’s health and economy and the quality of life in and around cities, naturally requires measures that stimulate the paradigm shift from car to bicycle.”

    In parallel to the introduction of the reduced VAT rate, the Portuguese Parliament also approved the continuation of the incentive scheme for low-emission vehicles, including conventional, electric, and cargo bikes, in 2023. This means that consumers will be able to benefit both from the reduced VAT rate and the purchase incentive. The only downturn? Funding for the incentive scheme has always been much lower than actual demand during the last years.

    On December 7th 2021 the Council of the EU revealed a “modernised” VAT directive that considered the rates applicable across a range of goods. As a result, consumers across the EU benefited from a reduction on the price of their bicycles and electric bikes thanks to a significant piece of policy reform trimming the VAT to be paid.

  3. Ireland announces increase in Cargo Bike support under Bike to Work scheme

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    Source: Gov.ie

    Minister for Transport Eamon Ryan has welcomed the decision to include a new higher limit for Cargo Bikes in the revised Bike to Work Scheme announced this month as part of the Finance Bill.

    The updated scheme sees a subsidy increase to €3,000 for Cargo Bikes – in recognition of their higher initial cost. Previously the available limit was linked to that available for bicycles (€1,250) and electric-assist bicycles (€1,500). Therefore, support for Cargo Bike purchases has now been doubled.

    Minister Ryan shared, “This increase will help make cargo bikes more affordable for those choosing to purchase a new bike under the bike-to-work scheme. Cargo bikes have become more popular in recent years with many people using them to bring their kids to school, for shopping and for work purposes as delivery vehicles. The cost factor, however, is an impediment to many people who may want to buy one. We hope that by increasing the limits for cargo bikes, more people will be able to choose them as a more sustainable way to get around.

    “We also need to see our courier and delivery companies moving at a faster pace from vans and trucks to cargo bikes and we are looking at ways of supporting this transformation, specifically for the last mile element of their deliveries.

    “The coming years will see a re-allocation of road space away from private vehicles towards public transport and space for people walking and cycling and cargo bikes will play a large part in how we use our roads. I look forward to seeing many more cargo bikes on our roads over the coming years, helped by this decision today to make them more affordable.”

    The Bike to Work Scheme aims to encourage the public to cycle to and from work. The initiative allows employees to give part of their salary for a bicycle and/or safety equipment, which should be used primarily for travelling to and from work. The purchase is not taxable benefit-in-kind and can be made in any shop.

  4. The French government provides large e-bike subsidies for lower-income households

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    Source: Fietsberaad Crow

    With the goal of boosting bicycle usage from 3% to 9% by 2024, the French government has launched a subsidy scheme for the purchase of e-bikes.

    The highest subsidy amount is available to those with a low income, who can trade in their old diesel car (from before 2011) or petrol car (from before 2006) and gain support in purchasing an electric bicycle instead.

    This allows individuals to receive up to 40% off the purchase price to a maximum of 3000 euros. Those who live or work in environmental zones can benefit from additional aid of up to 1000 euros. In total, it is possible to receive a total conversion bonus of 4000 euros.

    For those with higher incomes, the maximum reimbursement is 1500 euros.
    Anyone who has nothing to trade in may also qualify for a subsidy. 

    Of course, subsidising e-bike purchases is not a wholly new concept. The scheme is more or less mimicking that in Lithuania, where one could receive a subsidy of 1000 euros when returning an old vehicle, an amount that could be used for the purchase of a bicycle or a public transport card.

  5. Flemish subsidy for ‘zero-emission-vehicles’ to be discontinued

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    The newly appointed Flemish government has decided to discontinue a subsidy scheme for so called ‘zero-emission-vehicles’. If you still want to make use of this arrangement, be sure to order a vehicle ultimately on 31th of December 2019. Registering/applying for the subsidy is still possible, if you have an invoice, up to 31th of October 2020.

    This subsidy scheme is available for electric mopeds class b (including electric three- and four wheeled vehicles), electric motorcycles and electric vehicles category M1/N1. Vehicles that are not eligible for the scheme are e-bikes, speed pedelecs and electric light moped (class A).

    The subsidies are only available for private persons, non-profits organisations, carsharing systems and license holders of taxi services. For additional information about the subsidy scheme, go to the Flemish governemental website (Dutch).

    Photo credits: Zero motorcycles

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