Tag Archive: subsidies

  1. EU bicycle subsidies in 2024: growth in some countries and cuts in others amid political uncertainty

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    Source: ECF

    While bicycle purchase incentives continue to expand in some European countries, political and financial instability is leading others to scale back or eliminate their programs.

    Spain has introduced new subsidy schemes aimed at increasing bicycle use, whereas France has abruptly ended its support due to budget cuts. Meanwhile, Poland’s planned national program has been put on hold due to funding challenges.

    Expansion of bicycle subsidies in Spain

    In September 2024, Spanish Prime Minister Pedro Sánchez announced a €20 million subsidy program for electric bicycles, benefiting both individuals and businesses. An additional €20 million will be allocated to public bike-sharing systems, with the goal of expanding access and reducing costs. Sánchez emphasized that the initiative aims “to increase the modal share of cycling in daily commuting and to have more bikes in more cities, for more people.”

    Support for cycling incentives in Spain extends beyond the national government. The Madrid region, for example, has introduced a targeted subsidy program specifically for elderly citizens and small and medium-sized enterprises. Notably, the national and regional governments are led by opposing political parties, highlighting that cycling promotion can transcend political divisions.

    France ends bicycle subsidies amid budget cuts

    In contrast, France has opted to discontinue its bicycle subsidy programs. A government decree issued in late November 2024 announced that all state-funded bicycle purchase incentives would be withdrawn by February 2025, despite previous commitments extending support until 2027. The decision follows political turmoil and urgent budgetary restrictions.

    Cycling advocates have strongly criticized the move, warning of its negative impact on both the industry and vulnerable users. Thibault Quéré, Director of the French Federation of Bicycle Users (FUB), describes the decision: “This is a blow to a dynamic that was well underway and had found its audience. All the more so as the subsidies targeted the most vulnerable households and the range of bicycles was adapted and advantageous for people with disabilities. ”

    Poland’s plans on hold due to funding challenges

    Poland had also planned to launch a national electric bicycle subsidy program from 2025 to 2029, with a total budget of PLN 300 million (approximately €70 million). However, the initiative was put on hold in the autumn of 2024 after the European Investment Bank declined to finance it through the Modernisation Fund, citing energy efficiency investment priorities. Advocates hope that alternative funding sources will be identified to enable the program’s implementation.

    Future prospects for bicycle subsidies in the EU

    Despite setbacks in some countries, bicycle purchase incentives remain a crucial tool for promoting cycling as a sustainable alternative to car travel. Electric and cargo bicycles, in particular, have been recognized for their potential to replace car trips, facilitate urban mobility, and make cycling more accessible to a broader demographic, including older adults and families.

    Looking ahead, the drafting of national plans under the EU Social Climate Fund in early 2025 presents an opportunity for member states to allocate funding for bicycle purchase and leasing programs, particularly for vulnerable transport users. As the debate over sustainable transport policies continues, the future of bicycle subsidies in Europe remains uncertain, shaped by both political decisions and economic constraints.

  2. Dutch government extends electric cargo bikes subsidies with new requirements for 2025

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    Source: Nieuwsfiets

    The Dutch government has renewed its Environmental Investment Deduction (MIA) and Random Depreciation of Environmental Investment (Vamil) schemes for 2025, adjusting eligibility criteria to promote the use of electric cargo bikes, including those equipped with solar panels.

    Effective from 30 December 2024, the changes introduce a weight-based requirement for eligible cargo bikes and expand support for solar-powered cargo bikes, reflecting the government’s ongoing commitment to sustainable urban transport solutions.

    Key adjustments to the MIA and Vamil schemes

    Previously, a minimum investment amount of €4,000 was required to qualify for subsidies. Under the updated rules, this requirement has been replaced by a minimum unladen weight of 75 kg for eligible cargo bikes. Additionally, a new category (A3120) has been introduced to cover cargo bikes with integrated solar panels.

    These updated incentives are expected to make electric cargo bikes more accessible to businesses and individuals, particularly in urban logistics, where cargo bikes are increasingly used to reduce emissions and ease traffic congestion.

    Understanding the MIA and Vamil incentives

    The MIA allows businesses to deduct a percentage of their investment in environmentally friendly assets from their taxable profit. Depending on the type of cargo bike, companies can deduct up to 45% of the investment amount.

    Meanwhile, the Vamil scheme provides businesses with flexibility in depreciating 75% of their investment at any time, allowing them to reduce their taxable profit when it is most financially advantageous. The remaining 25% is depreciated under standard rules.

    Both MIA and Vamil schemes can be used together, providing significant tax benefits for businesses investing in sustainable mobility solutions.

    New requirements for solar-powered cargo bikes

    Cargo bikes equipped with solar panels are now eligible for higher MIA deductions under the F3120 category, provided they meet certain criteria. The solar panels must be permanently integrated into the bike and capable of producing a minimum total output of 400 Watt peak.

    These higher deductions reflect the government’s focus on promoting innovative, energy-efficient transport solutions that reduce the carbon footprint of urban logistics.

    Additional local incentives

    In addition to national subsidies, regional and local incentive schemes are available in areas such as Overijssel, Amsterdam, and Maastricht, further encouraging the adoption of cargo bikes across the country.

    Growing popularity of cargo bikes in the Netherlands

    The popularity of cargo bikes is steadily increasing in the Netherlands, with nearly 400 businesses and organisations already using them, according to Fietsdiensten.nl. Companies are leveraging cargo bikes to improve last-mile delivery, reduce emissions, and avoid urban congestion charges.

    These renewed subsidies are expected to further boost the adoption of sustainable transport solutions, helping businesses transition to low-emission alternatives in urban areas while benefiting from tax advantages provided by the MIA and Vamil schemes.

    More information about the MIA and Vamil schemes can be found here.

  3. Subsidies on bike purchases eliminated in France

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    Source: Bike Europe

    The recent budget crisis in France, which has stirred significant political turmoil, is now impacting the bicycle and e-bike industry.

    Without prior notice, the French government has announced the abrupt termination of all state subsidies for bicycle and e-bike purchases. The decision has sparked widespread concern within the industry, with the Alliance for Cycling warning of severe repercussions.

    In late November, the government revealed that the ‘ecological bonus‘ program, which supported bicycle purchases for both individuals and businesses, will end next year. Starting from December 2, 2024, bicycles invoiced or rented for the first time after February 14, 2025, will no longer qualify for state aid.

    Backlash from the cycling community

    Patrick Guinard, president of France Vélo, criticized the government’s sudden decision, stating, “These decisions were taken without the slightest consultation, in total contradiction to studies showing the benefits of cycling—for the planet, the economy, health, and social cohesion.” He emphasized that this move undermines recent progress made during a pro-cycling five-year term.

    E-bike market at risk

    The bicycle subsidy, introduced in 2017, led to a doubling of sales, according to Union Sport & Cycle. Despite subsequent restrictions, subsidies still accounted for 10% of e-bike purchases. Earlier this year, the program was extended to 2027 and expanded to include secondhand bicycles. Research highlighted its positive effects on public health, regional economies, and the decarbonization of transportation.

    Additionally, the ‘conversion bonus‘, which allowed consumers to trade in their cars for e-bikes, was a notable achievement of the 2021 Climate and Resilience Regulation. In 2023 alone, the government paid out €40 million in subsidies, with grants ranging from €150 to €2,000, depending on the type of bicycle and the recipient’s financial situation. In low-emission zones, additional premiums of up to €1,000 were available.

    Challenges for the cycling industry

    Industry groups such as Réseau Vélo et Marche, FUB, Union Sport & Cycle, and APIC have emphasized the importance of the subsidy program in rebuilding France’s bicycle production sector. In a joint statement, they noted a 24% decline in bicycle production and a 13% drop in sales compared to 2022. They warned that while electric cars continue to receive government support, neglecting e-bikes risks derailing progress in the cycling industry.

    Cargo bikes, in particular, have seen significant growth due to subsidies, with sales quadrupling between 2022 and 2023. “The subsidy program has been a crucial driver for developing a sustainable and ambitious cycling industry in France,” the statement concluded.

    The abrupt halt to these subsidies marks a significant challenge for France’s efforts to promote cycling as a sustainable mode of transportation. Industry leaders are urging the government to reconsider its decision to preserve the momentum built over recent years.

  4. Fossil fuel subsidies for company cars cost EU taxpayers €42 billion every year according to new study

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    Source: Transport and Environment

    The new European Commission has pledged to eliminate fossil fuel subsidies and ensure a fair green transition. Now, it must fulfil this commitment, says clean transport advocacy group Transport & Environment (T&E).

    In a recent report, T&E highlights that subsidies for petrol and diesel company cars cost EU taxpayers €42 billion annually. The study by ERM, commissioned by T&E, examined the impact of four key tax benefits provided to company cars: benefit-in-kind, depreciation write-offs, VAT deductions, and fuel cards. Unlike private car owners, company car drivers benefit from these subsidies, with company cars representing 60% of new car registrations in Europe.

    Italy leads the list of countries heavily subsidizing polluting company cars, followed by Germany, France, and Poland, with annual costs of €16 billion, €13.7 billion, €6.4 billion, and €6.1 billion respectively. Most of these subsidies arise from benefit-in-kind schemes that continue to favor petrol and diesel vehicles.

    In contrast, the UK and Spain provide significantly lower tax advantages for polluting company cars. The UK imposes high benefit-in-kind rates on petrol and diesel company vehicles, which encourages a switch to electric cars, now accounting for 21.5% of company registrations. In Spain, tax benefits for company cars mirror those for private cars, with minimal incentives for EVs, resulting in a lower uptake of electric vehicles among companies at 3.7%.

    The report also reveals that SUV drivers of company cars receive high fossil fuel subsidies, paying up to €8,900 less in taxes annually than private SUV owners. Consequently, companies register twice as many SUVs as private households, with €15 billion of the total subsidies directed toward SUVs.

    Stef Cornelis, Director of T&E’s electric fleets program, criticized the situation, stating that billions of taxpayer euros fund tax benefits for company drivers of high-pollution SUVs, calling it “bad climate policy and socially unfair.” Cornelis urged the European Commission to take swift action, as countries like the UK and Belgium have begun phasing out benefits for polluting vehicles, while major European markets continue to support them.

    With corporate fossil fuel vehicle subsidies hindering the EU’s green transition, T&E advocates for immediate policy changes. They call on the new European Commission to introduce a Greening Corporate Fleets Regulation in 2025 with binding electrification targets for large corporate fleets and leasing firms. This step aligns with the EU Clean Industrial Deal, which aims to create a lead market for clean technology, stimulating demand for EVs and ensuring investment stability for key industries.

    President von der Leyen has reaffirmed her dedication to the Green Deal and tasked her Commissioner candidates to eliminate fossil fuel subsidies. Stef Cornelis concluded that under von der Leyen’s renewed leadership, the Commission should set electrification targets for company fleets and correct this tax discrepancy, supporting the EU’s industrial agenda and boosting the clean tech and e-mobility sectors.

  5. Ghent subsidies help local suppliers decarbonise deliveries

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    Source: The Mayor

    The Belgian city aims to have its centre emissions free by 2030.

    Companies making deliveries to Ghent’s central area can join one of two pilot projects: receiving a free electric vehicle, or a financial subsidy for a local emission-free last-mile delivery service. Both incentives are provided by the municipality.

    Ghent’s climate goals are notably practical. The city aims to make its central area as emission-free as possible by 2030. While this target may seem less ambitious compared to other cities that promise ’emission-free zones’ or ‘banning fossil fuel cars,’ it appears achievable.

    Not just empty words

    “By 2030, we want city logistics to be as emission-free as possible, but we’re not leaving entrepreneurs to tackle this alone. We give them time to prepare and offer support to encourage them toward sustainable logistics,” explains Sofie Bracke, Alderman for Economy.

    Approximately 7,000 tonnes of goods are delivered to Ghent’s central area (inside the R40 ring road) every week via 40,000 trips by vans and trucks, excluding construction logistics. Daily, 10,000 to 20,000 parcels are delivered to the city center.

    This significantly impacts traffic and emissions, prompting the city to start implementing changes now. The phased approach allows entrepreneurs time to adapt.

    Two options for entrepreneurs

    For the first pilot project, companies, sole proprietorships, or non-profit organizations can test an emission-free vehicle for deliveries in Ghent free of charge for one week. They will also receive advice and customized logistics services.

    Options include an electric truck, box truck, refrigerated truck or van, a light electric freight vehicle, or a cargo e-bike. Testing is available from September 23 to December 13, 2024.

    The second option involves outsourcing the ‘last-mile delivery’. Logistics companies will bundle deliveries and transport goods from the city’s edge to the center. Participants collaborating with these providers will receive a 6,000-euro subsidy.

  6. My-eScooter calls for a reform of tax benefits for sustainable mobility

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    My-eScooter, a company from Nivelles specialized in the production and distribution of innovative electric scooters, reopens the debate on the tax benefits of soft mobility for companies.

    It may sound absurd, but in Belgium it is currently not possible to use your mobility budget for scooters or other sustainable means of company transport. They are simply not considered “bicycles” in the eyes of the law. In practice, however, electric scooters are already part of the solution. As an example, consider the My-eScooter scooters from GSK and ALD.

    This is not a sharing scooter

    Talking about the growing importance of mobility budgets for companies is actually kicking in an open door. The integration of personal electric scooters provides an additional alternative to the soft mobility of our companies, far from the shared scooters that roam our cities. The need for sustainable and flexible solutions has never been greater, except for our legislator apparently…

    Urgent: the electric scooter must be considered a “bicycle”.

    A quick refresher: since 2021, Belgian employers can enjoy a number of tax benefits to encourage their staff to make use of soft mobility. All costs specifically incurred for the purpose of promoting this use are 100% deductible as business expenses. The purchase, maintenance costs, helmets, padlocks, safety vests, batteries, leasing costs and even healthcare are all included.

    The elephant in the room:

    The legislator does not (yet) regard the electric scooter as a “bicycle”. Yet this means of transport is the perfect complement to cars and bicycles.
    There is no clear equivalence for VAA, mileage allowance or deductibility. However, electric bicycles and scooters have an electric motor and battery and solve the same problem: soft mobility over short distances.

    “This is absurd when you look at the added value of electric scooters in mobility plans. The proof is the tests carried out in collaboration with GSK and the lease applications with ALD,” underlines Sanjeev D’Souza, founder of the My-eScooter brand.

    Convincing tests at GSK

    At DSK, approximately 9,000 employees have a mobility budget. Patrick Vlasselaer, Mobility Manager, is organizing the promotion of electric scooters for the second consecutive year. “By lending the different My-eScooter models, our employees can test and find the electric scooter that suits their profile, both for commuting and for private activities. Initially, I focused on employees who live within a radius of 7 km from the head office, approximately 300 people. The feedback was very positive, thanks to the quality of the products and the innovative options for safe mobility. In consultation with my colleagues from HR, we hope to also introduce this extra soft mobility alternative in our internal offers.”

    An existing offer at Ayvens (ALD Automotive | LeasePlan)

    The leasing specialist did not wait for the legislator to include electric scooters in the offer for companies, but the fiscal brake is already noticeable. When leasing, Irene Malla, Product Manager, pays close attention to 3 criteria: “The quality of the product, the range of maintenance and the flexibility of the solution. I found this added value at My-eScooter. The portfolio is innovative, there is They also have an after-sales service in Belgium and they offer battery regeneration if necessary. We regret that Belgian legislation is an obstacle for our customers, because the demand is certainly there.”

    About My-eScooter

    My-eScooter is a Belgian company specialized in the production and distribution of innovative electric scooters. Their mission is to encourage alternative and sustainable mobility at work and for personal use. The range of innovative and environmentally friendly products includes electric scooters with replaceable batteries and an exclusive battery regeneration service. As a Belgian company, My-eScooter is the partner of the most important players in the field of mobility. www.my-escooter.com

  7. Pendelfonds subsidizes sustainable commuting in Belgium

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    The commuter fund is now open for applications for projects that improve the connection between public transport and the workplace, and projects that stimulate the use of nearby bicycle highways.

    Commuting must be more sustainable. We still use the car too much to get to work and this without taking one or more colleagues with us. In the near future, the share of private car use in commuting should decrease. The share of bicycles and public transport in commuting must increase.

    The Pendelfonds subsidy has been set up in order to achieve these objectives, among other things. Pendelfonds subsidizes projects that promote sustainable commuting. Projects aimed at reducing the number of car journeys in the field of commuting may be eligible. Companies or other private institutions, but also local or provincial governments or other public institutions (in collaboration with a private partner) can also apply for the subsidy.

    The subsidy amounts to a maximum of half of the costs associated with the project implementation, with a maximum of 200,000 euros when a company submits alone. This maximum amount increases depending on whether the project is submitted by two or more companies: 250,000 euros for 2 companies, 300,000 euros for 3 companies, 350,000 euros for 4, and 400,000 for 5 or more companies. The project duration is a minimum of 2 and a maximum of 4 years.

    On 18 September, the 14th call for Pendelfonds applications was opened and companies and governments can apply to submit a dossier. With this funding, the Flemish government aims to give subsidies to initiatives that make commuting more sustainable. The 14th call is aimed at projects that improve the connection between public transport and the workplace, and at projects that stimulate the use of nearby bicycle highways.

    Companies and organisations that want to submit a project can apply for a filing number from 18 September to 18 October. After that, they have until January 18 to complete the grant application. The more a submitted project falls under the focus of the call, the higher the score of the project, and the more chance of receiving funding.

  8. 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.

  9. EU provides €200 million for sustainable and efficient transport and simplifies access to financing for transport projects

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    Together with the European Investment Bank (EIB), the European Commission (EC) has recently launched the new CEF Transport Blending Facility, an innovative financial instrument to support projects contributing to the environmental sustainability and efficiency of the transport sector in Europe.

    With an initial budget of EUR 200 million from the EU budget, the Facility will finance investments in the European Railway Traffic Management System (ERTMS) and in Alternative Fuels infrastructure, leveraging funds from the EIB, National Promotional Banks and private sector. This is in line with the key policy objectives of decarbonisation and digitalisation of EU transport, as well as smart, sustainable, inclusive, safe and secure mobility. Moreover, to foster deployment of mature projects, the EC sets for the first time a ‘Facility’ which will allow applications to financial support on a rolling basis until March 2021.

    EU Commissioner for Transport Violeta Bulc said: “We are further delivering on our agenda for a clean and digital transport system. Today, we are investing 200 million for the development of alternative fuels, as well as for accelerating the deployment of ERTMS, which is a cornerstone for digitalising the rail sector. By its innovative nature, I have no doubt the Facility will facilitate investment and contribute to the modernisation and better efficiency of European transport.”

    European Investment Bank (EIB) Vice President Vazil Hudak, responsible for the transport sector, further stated: “We look forward to continuing our collaboration with the European Commission as a potential implementing partner for the Facility. As we move towards the next financial programming period, we see this as an exciting pilot initiative to build on the success of the blending call, to complement CEF and EFSI financial instruments as well as to unlock further investments in the fields of alternative fuel vehicles, infrastructure and ERTMS.”

    Trans-European networks and cross-border cooperation are crucial to the functioning of the Single Market. Private operators and national authorities have insufficient incentive to invest in infrastructure projects without EU intervention. Combining EU grants and financing from public banks and private sector (“blending”) allows to mobilise resources to support key EU policy objectives. The new CEF Transport Blending Facility sets a clear frame for the realisation of such operations.

    Close cooperation has been set up with the EIB, which intends to become a key implementing partner of the CEF Transport Blending Facility. A number of National Promotional Banks already signalled their potential interest to join the scheme. The CEF Transport Blending Facility serves as a pilot for the next financial period.