Tag Archive: subsidy

1. Subsidies on bike purchases eliminated in France

   16/12/2024 17:02 Comments Off on Subsidies on bike purchases eliminated in France

   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.

2. CARLA CARGO shares details on e-cargo subsidy in Germany

   04/11/2024 15:25 Comments Off on CARLA CARGO shares details on e-cargo subsidy in Germany

   Brand outlines BAFA discount details for German businesses and public entities

   On October 1 2024, the German government’s Federal Office of Economics and Export Control (BAFA) announced that it is again offering financial assistance for electric cargo bike purchases. CARLA CARGO has confirmed that this subsidy enables participants to receive a 25% discount, saving up to €3,500 on all eCARLA models, with the option to include non-electric models in conjunction with e-cargo bike orders in a discounted order.

   Eligibility

   These purchases are exclusive for private companies, corporations, and public entities (such as universities) and must be used for transporting loads such as materials, goods etc.

   Funding details

   The BAFA discount will apply to the following eCARLA models:

   eCARLA

   eCARLA OR

   eCARLA maxi

   The subsidy can also be used for a combination of e-cargo bike purchases and non-motorized models, like so:

   eCARGO bike + CARLA/ CARLA mini/ CARLA maxi

   It can also be applied to a second battery, structures, lock, shipping and packaging.

   Subsidy examples

   CARLA CARGO has published this example of potential BAFA savings:

   

   Full details of purchasing an eCARLA model with the BAFA discount can be found here (in German).

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

   28/10/2024 18:21 Comments Off on Fossil fuel subsidies for company cars cost EU taxpayers €42 billion every year according to new study

   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.

4. Pendelfonds subsidizes sustainable commuting in Belgium

   25/09/2023 15:14 Comments Off on Pendelfonds subsidizes sustainable commuting in Belgium

   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.

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

   20/03/2023 13:17 Comments Off on Austria launches folding e-bike funding plus tighter e-scooter regulations in Vienna

   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.

6. London’s ULEZ subsidies could contribute to increased LEV use in excluded groups

   06/02/2023 16:07 Comments Off on London’s ULEZ subsidies could contribute to increased LEV use in excluded groups

   Source: Cycling Industry News, M. Sutton

   Subsidies available through the ‘Ultra Low Emission Zone’ scrappage scheme have been confirmed to be valid for the purchase of e-bikes, cargo bikes, and e-scooters.

   London’s ultra-low emission zone (ULEZ) was designed to reduce the use of the most polluting vehicles in the city centre. Thus far, the ULEZ has helped to reduce roadside pollution levels by 44% in central London and 20% in inner London. Hence, the scheme is going London-wide from August 2023, aiming to improve air quality for an additional 5 million residents, trigger a 2% reduction in car use, and cut further into PM2.5 exhaust emissions.

   A key factor in the ULEZ expansion is the associated £110 million ‘scrappage scheme’; the full details of this can be found here. Transport for London shared, “Following the success of our last scrappage scheme, which saw the removal of more than 15,000 polluting vehicles from London’s roads, our new scrappage scheme will support Londoners on certain low income or disability benefits, and eligible micro-businesses (up to 10 employees), sole traders and charities with a registered address in London. Only eligible applicants with vehicles that do not meet the ULEZ emissions standard will qualify for our new scrappage scheme.“

   It is excellent to hear that scrappage subsidies can be applied to the purchase of e-bikes, e-scooters, and cargo bikes. This massively improves the accessibility of LEVs and green mobility to many Londoners who may have been priced out until now.

   

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

   24/10/2022 15:58 Comments Off on Ireland announces increase in Cargo Bike support under Bike to Work scheme

   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.

   

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

   15:13 Comments Off on The French government provides large e-bike subsidies for lower-income households

   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. Finnish Transport Ministry proposes €400 electric bike subsidy

   22/03/2018 14:56 Leave a Comment

   Source Yle – Finland’s Ministry of Transport and Communications is proposing a subsidy of up to 400 euros annually for anyone who buys an electric bicycle.

   An electric bicycle or e-bike has a built-in electric motor and rechargeable battery that helps with propulsion. They typically sell for 1400-3,000 euros in Finland, with some simpler models beginning around 700 euros.

   If approved, the rebates would be handed out by the Finnish Transport Safety Agency (Trafi). The plan is to open an online application system on 1 July 2018. Subsidies could be obtained retroactively for any e-bike bought after 1 April.

   Funds from ‘bioeconomy and clean solutions’ programme

   The money would be paid out of budget funds earmarked to support the acquisition of electric cars and the conversion of gas and ethanol cars between 2018 and 2021. Thus the plan would require a revision of legislation aimed at supporting the purchase of low-emission cars.

   The proposal is part of a government plan to encourage walking and cycling, which is to be unveiled on Friday.

   That, in turn, falls under the centre-right coalition’s overall programme to boost what it calls ‘bioeconomy and clean solutions’. Environmental groups such as the Finnish Association for Nature Conservation have expressed sustainability concerns about the programme, which calls for expanded use of renewable natural resources.

   The Finnish e-bike market

   Electric bikes are becoming more popular across Europe, but Finland has lagged behind the trend. That could change if the proposed subsidies are introduced.

   That price issue is a key factor in the relatively slow adoption of electric bikes in Finland. Whereas in Germany e-bikes make up 15 percent of bike sales, in Finland the figure for 2016 was less than one percent.

   According to Matti Koistinen of the Finnish cycling association, e-bikes are slowly becoming more common.

   “We are reaching a point where everyone will know somebody with an e-bike,” said Koistinen. “When you can ask an acquaintance for tips, and there are more e-bikes about, the market will take off.”