What is the current regulatory context in Europe?
Ambitious targets for reducing greenhouse gas emissions on a European scale
The ecological transition of the European automotive sector is already well underway. The European Commission has set an ambitious course with the Climate PlanFit for 55presented on 14 July 2021. One of its major pillars is the reduction of 55 % of greenhouse gas emissions emissions from the automotive sector by 2030 compared with 1990, and a ban on the sale of new cars and vans emitting CO₂ from 2035. In practical terms, this means that by 2035, only 100 % electric vehicles or vehicles using carbon-neutral fuels will be allowed to be registered in the European Union.
To make this transition possible, the plan relies on the massive deployment of recharging infrastructure: the aim is to have 1 million public charging points by 2025 and 3.5 million by 2030, compared with just 225,000 by the end of 2020. The Commission also plans to install at least two fast terminals every 60 km on major European routes from 2025.
National obligations to be met
Alongside European regulations, several countries have introduced their own obligations. In France, the Loi d'Orientation des Mobilités (LOM) imposes quotas for low-emission vehicles when fleets are renewed each year. These progressive quotas apply to companies with more than 50 employees and a fleet of at least 100 light vehicles:
- 10 % in 2022
- 20 % in 2024
- 40 % in 2027
- 70 % in 2030
As a result, since 1 January 2024, 20 % of vehicles renewed in the companies concerned must emit less than 50 g CO₂/km. This constraint affects both the private sector and public establishments and encourages fleet managers to plan progressive renewal strategies now.
The development of Low Emission Zones (ZFE)
Finally, Low Emission Zones (LEZs) and carbon taxes are increasing regulatory pressure, particularly in major cities. Cities such as Amsterdam, Madrid, London, Brussels and Milan are already imposing minimum standards (Euro 4 to Euro 6) to restrict access to the most polluting vehicles. In France, the ZFEs are becoming increasingly stringent: the Crit'Air 3 (Euro 4) threshold will be required in 2024, followed by Crit'Air 2 (Euro 5) in 2025, having a direct impact on combustion-powered fleets in cities such as Paris and Lyon.
What changes are expected by the end of 2025?
Revision of CO₂ emission standards for new cars and vans
By the end of 2025, the European Commission plans to introduce a legislative package combining the revision of CO₂ emission standards and the greening of corporate fleets, a crucial step in speeding up the transition of the automotive sector. This package is part of the wider framework of theprogramme Fit for 55. In practical terms, the proposed regulation provides for an upward revision of CO₂ emission reduction targets for new cars and vans :
2021: limit of 95 g/km for cars and 147 g/km for vans.
2030: reduction of 55 % for cars and 50 % for vans compared with 2021 levels.
2035: target of 100 % zero-emission vehicles, i.e. only zero-emission cars and vans put on the market.
This measure aims not only to meet the EU's climate objectives, but also to stimulate innovation and strengthen the competitiveness of the European automotive industry, while offering benefits to citizens and consumers.
Introduction of a mandatory framework for the greening of company fleets
At the same time, the Commission intends to introduce a mandatory framework for the greening of company fleets, which will necessarily have to fit in with the proposed changes to the CO₂ of cars. According to Eric von BreskaAccording to the Director of Investment, Innovative and Sustainable Transport at DG Move, this package could be presented as early as December 2025, combining these two strands to create coherent, comprehensive legislation. Although the broad outlines are already known (in particular, greater attention to local production and industrial innovations), the arbitration is still open and the final text on company fleets has not yet been decided.
How long does it take to prepare for the regulatory framework?
The transition to zero-emission fleets is based on a precise timetable, which it is crucial for companies to know in order to anticipate their investments and fleet renewal strategy.
🗓️ Regulatory timetable
The European Commission will publish its impact assessment, a key document for understanding the economic and technical consequences of the new measures for manufacturers and fleet managers.
The 'review clause' built into the Fit for 55 framework is a decisive milestone for analysing progress in depth and adjusting targets to technological advances.
A binding stage for light commercial vehicles (LCVs), with a mandatory reduction of 50 % in emissions compared with 2021 levels, which will require companies to have a significant proportion of low-emission vehicles in their fleets.
The entry into force of the Euro 7 standard, also applicable to LCVs in France, will introduce stricter requirements on particulate emissions, brakes and tyres. Fleet managers will have to adapt their purchasing and maintenance to meet these standards.
The ultimate and unavoidable target: 100 % zero-emission vehicles for all new light and commercial vehicles sold in the European Union. By this deadline, only electric or fuel-neutral cars and LCVs will be allowed on the market.
The Commission has already expressed its willingness to bring forward the Review clause scheduled for 2026 in order to present a coherent package before the end of 2025. Adjustments could be made for manufacturers who find this deadline difficult, allowing targets to be adjusted if necessary.
In practice: These deadlines mean that companies need to plan their renewals now, invest in electric and plug-in hybrid vehicles, and implement a sustainable mobility strategy. The earlier they plan ahead, the better they can control costs and avoid regulatory risks.
Which sectors are most affected?
Future regulations combining CO₂ standards and mandatory greening of fleets will affect a wide range of economic players. However, certain sectors are on the front line because of the size of their fleets, their daily activity on the roads or their exposure to low emission zones (LEZs).
Transport and logistics: first on the front line
Light commercial vehicles (LCVs) are the core business of hauliers, delivery firms, courier companies and wholesalers.
From 2030, these players will have to reduce the emissions from their LCVs by 50 % compared with 2021, and anticipate 100 % zero emissions by 2035.
Their challenge will be twofold: to invest massively in electric or rechargeable hybrid fleets, and to organise access to fast-charging infrastructure, which is vital if they are to maintain their delivery rates.
Large multi-site companies: an organisational challenge
Large groups operating in distribution, construction, energy or services often have fleets of more than 50 vehicles spread over several sites.
These companies are directly affected by :
- The quotas for low-emission vehicles imposed by the LOM law on the annual renewal of fleets;
- Planning major investments to adapt depots and car parks;
- Tax management of new zero-emission vehicles and carbon credits.
For these structures, complying with the obligations will require a global strategic approach, integrating driver training and real-time monitoring of emissions data.
Urban SMEs and local businesses: the most exposed to the EPZs
Small urban businesses (particularly craftsmen, last-mile delivery services and local shops) are directly affected by the extension of the EPZs in Europe's major cities.
They must :
- Rapidly replace diesel and petrol vehicles with light electric models;
- Adapting their urban logistics, often without large car parks or easy access to recharging points;
- High initial investment costs, difficult to absorb without subsidies or local aid.
Why plan ahead: the benefits of a sustainable mobility strategy
By anticipating the new European requirements now, be they the CO₂ package, the LOM greening quotas or the EPZs, companies are giving themselves the means to avoid additional costs, secure their competitiveness and enhance their image in the eyes of their stakeholders.
Avoid the rising costs of carbon taxes and traffic restrictions
The gradual tightening of carbon taxes and traffic restrictions on combustion-powered vehicles will automatically increase the cost of using petrol and diesel cars.
Fleet managers need to think ahead:
- the continuing rise in the price of fossil fuels, subject to emission quotas ;
- access restrictions in EPZs or during pollution peaks (Crit'Air stickers);
- the risk of financial penalties for non-compliance with greening quotas.
The sooner a company starts replacing its vehicles with low-emission models, the more it will recoup its investment over time and limit its dependence on expensive and volatile fuels.
Reduce the overall TCO of your fleet
TCO (Total Cost of Ownership) is no longer just the purchase price: it includes fuel, maintenance, insurance and tax.
There are several ways in which electrification can reduce this TCO:
- Electric vehicles cost 30 to 50 % less per kilometre than diesel, mainly because of the lower price of electricity and simplified maintenance (fewer wearing parts), regenerative brakingno oil changes).
- Long-term leasing or LOA allows you to smooth out the initial investment, adapt the contract to the rate of renewal and secure the resale.
- In France, as in other Member States, exemptions from VAT, depreciation and VAT recovery (for commercial vehicles) make electric vehicles even more economically attractive.
In other words, investing early in electrification will rapidly generate operating savings, which will partly finance the infrastructure and offset the initial cost of the vehicles.
Reinforcing our CSR image and meeting the expectations of our employees and customers
Beyond the financial aspects, a sustainable mobility strategy is now a key argument for employer brand and reputation:
Customers and major clients demand accurate carbon footprints, and prefer suppliers with a clear commitment to climate neutrality.
Employees, especially the younger generation, are attentive to their employer's environmental practices; offering company electric vehicles or on-site charging points is becoming an asset in terms of loyalty and attractiveness.
Finally, a low-carbon fleet contributes to ESG objectives and non-financial reports, strengthening the company's position with investors and banks.
5 steps to greening your fleet
Making a success of the transition requires method and planning. Every organisation, whatever its size, can take action today.
1. Carry out a fleet audit
A precise diagnosis of the stock and its uses is essential:
- average daily mileage per vehicle ;
- areas of use (urban, rural, cross-border) ;
- types of journey: last-mile delivery, inter-site transport, commercial trips, etc.
This audit will make it possible to prioritise needs and identify immediately electrifiable segments.
2. Prioritising the electrification of urban and light commercial vehicles
LCVs and small urban vehicles are the most exposed to the EPZ restrictions and have electric ranges that are already adapted to short, repetitive journeys.
Prioritising these models guarantees a rapid return on investment while immediately reducing emissions.
3. Deploying on-site recharging points and offering benefits to employees
The internal recharging network is the cornerstone of any electric mobility strategy:
- Installation of accelerated or fast charging stations in company car parks or logistics depots
- Provision of home charging points or public recharging cards for employees on the move
- Attractive benefits-in-kind offers to encourage employees to choose a company electric vehicle.
4. Optimising financing through grants and tax incentives
There are a number of ways to reduce investment:
- Public aid (regional subsidies) ;
- Leasing or long-term rental to smooth out expenditure;
- Favourable tax arrangements: exemption from TVS for EVs, accelerated tax depreciation, recoverable VAT for light commercial vehicles.
A good knowledge of these systems is a decisive factor in reducing the overall cost of the project.
5. Set up CO₂ reporting to monitor environmental performance.
The electrification of your fleets gives you precise measurements to develop and support your decarbonisation strategy:
- real-time monitoring of CO₂ emissions avoided ;
- energy consumption and usage rates ;
- integration of data into ESG reports.
Supervision tools make it easier to manage the fleet and produce well-argued non-financial reports.
The CO₂ and greening of fleets package expected by the end of 2025 reflects Europe's desire toto accelerate its climate transition.
You can take action now by electrifying your vehicles, investing in charging stations, but also by improving the monitoring of your CO₂ reduction performance. The more you anticipate your transition to a green and sustainable fleet, the more you control your costs and reduce your risks. Not to mention the indirect benefits, such as improving your CSR strategy and employer brand.
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