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EPZs for businesses: what changes?

Renault Master e-Tech

Visit ZFE ( low-emissionzones ) are becoming increasingly widespread in France. In this context, should you change your diesel commercial vehicle for an electric one in 2020? What do you need to know? Is now the right time, or should we wait?

We've looked into the matter to help you anticipate the changes that will come into force very soon with the introduction of low-emission zones ( ZFE) in France's metropolises.

Low-emission zones are defined urban areas in which the most polluting vehicles are banned from circulation.
These ZFEs require companies to change their vehicle fleets, so switching to less polluting vehicles will be essential over the next five years.
Companies such as La Poste have chosen to take the lead in electrifying their fleets. One in five of these vehicles will be low-emission in 2019, and this figure is set to rise over the next few years, until all vehicles are replaced.

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Changes linked to the introduction of EPZs

The Mobility Orientation Act, or LOM law, was published in the Journal Officiel on December 26, and concerns both public and private companies. It gives local authorities the choice and power to limit or ban access to the most polluting vehicles for a given period or on a permanent basis.

In France, road transport accounts for 94% of transport sector emissions:

  • 54% to private vehicles
  • 24% for heavy goods vehicles
  • 20% for commercial vehicles

The rate of emissions rises easily during heatwaves, justifying the introduction of restricted traffic zones (ZCR ) or alternating traffic, when pollution peaks are forecast. These measures are effective in reducing emissions for a time. Metropolises had to turn to a sustainable solution. Following the example set by other European cities, the French government and local authorities opted to introduce ZFEs. Within the framework of the Île-de-France Atmosphere Protection Plan, their impact is considered to be both rapid and effective in terms of air purification in the metropolis, and also necessary to encourage cleaner vehicle traffic.

Read also: ZFE : Lyon: no-vehicle zones and aids... everything you need to know about the ZFE

What to anticipate with the introduction of EPZs

In France, 98% of commercial vehicles run on diesel. A surprising figure, given that more than fifteen conurbations have announced the introduction of EPZs by the end of 2020, and that it was announced when the LOM law was published that no diesel vehicles would be on the road by 2024. 

The following cities have become or will soon become EPZs:

ZFE in force ZFE TO COME
Rouen
Dunkerque
Paris and the Greater Paris Metropolis
Lille
Reims
Béthune
Strasbourg
Douai-Lens
Lyon
Valenciennes
Grenoble
Amiens
Saint Etienne
Metz
Nice
Nancy
Aix-Marseille
Mulhouse
Toulouse
Clermont-Ferrand
Dijon
Annemasse
Annecy
Chambéry
Toulon
Avignon
Nîmes
Perpignan
Pau
Bayonne
Bordeaux
Limoges
Orleans
Towers
Angers
Nantes
Le Mans
Brest
Rennes
Caen
Le Havre

Given that leasing (LLD and LOA) is generally given over a period of 36 to 48 months (i.e. three to four years), it is necessary to consider the acquisition of low-emission commercial vehicles now, if your activity is located in the ZFEs. Their introduction will require a changeover of commercial fleets to less polluting vehicles.

Read also: Everything you need to know about car leasing

The government has every intention of tightening the screws, which is why the "green industry" bill this October 11, 2023. In view of this change, theecological bonus/malus will be reformed as of 2024.

In other words, from January 1, 2024, the threshold will be set at 118 g/km of CO2, representing a €50 penalty. What's more, the maximum ceiling will rise to €60,000.

So you need to consider converting your fleet of diesel commercial vehicles to low-emission vehicles if you want to continue commuting in mainland France. 

Setting a timetable for your company's energy transition

As fleet conversion is a strategic issue for the company, embarking on the energy transition is a long-term project which, depending on the company's needs and size, can take several months. 

If :

  • Your company operates mainly in mainland France and requires commercial vehicles: you're in the business of transporting goods, last-mile delivery, catering, plumbing or other craft activities.
  • Your company provides company cars for employees, and your premises are located on the outskirts or in a metropolis.

Read also: The ecological last mile challenge

If you're in one of these two situations, then the question of converting your fleet is one that needs to be addressed right away. It's vital to establish your energy transition timetable as soon as your leasing contracts come to an end, and before making any potential purchases.

When determining your energy transition timetable, bear in mind that the later the start date, the lower the tax benefits.

However, this is not the case for everything. For example: the ecological bonus will increase in 2024. The amounts have not yet been disclosed, but will be increased. In 2023, it will be €5,000 for professionals and €7,000 for the most modest households.

The LOM law will impose a quota of clean commercial vehicles on all companies with a fleet of over one hundred vehicles.
By 2030, the regulatory quota for low-emission vehicles will cover both private and commercial vehicles, and the mandatory quota will be 50% of the company's fleet.

Read also: Fleet and electric vehicles: why and how to speed up the transition?

Why is electric a sustainable solution?

Electric vehicles are clean alternatives to combustion-powered vehicles. This is an interesting possibility, given the energy and ecological challenges ahead. Indeed, electric vehicles, which are clean vehicles and comply with the restrictions imposed by the ZFE, have seen strong growth. According to Avere, France recorded 55,324 registrations in June 2023, up 58.1% on N-1.

The advantages of electric LCVs

Electrically-powered commercial vehicles are still little-known among companies, but their future looks promising, not only because of the regulatory deadline, but also because of the advantages associated with their use. Today's LCVs circulating within the EPZs have a concentrated intervention radius, and their daily requirement is generally less than 100 km. All these characteristics meet the needs of the switch to electric vehicles.

In terms of taxation, commercial vehicles are subject to the same rules, whatever the fuel used. Diesel or electric, they are all exempt from the tax on the use of passenger vehicles for economic purposes, and do not benefit from depreciation over time.

In terms of day-to-day costs, here's a brief comparison of a diesel and an electric commercial vehicle:

LCV diesel Electric LCV
Cost per 100 km
7 €
2 €
Parking charges (example in Paris)
4 €/h
0 €

We can see that costs are much higher for diesel engines. 

Another advantage for employees driving electric commercial vehicles is the silence on board the vehicle, which offers driving comfort and therefore reduces driver fatigue.

Electric LCVs may be more expensive to buy, but they are more economical to run and more pleasant to drive, thanks to on-board silence, immediately available torque and the absence of vibration from the engine.r. They are a perfect substitute for diesel-powered commercial vehicles, in terms of both functionality and taxation.

Read also: Parking your electric car: free parking?

Assistance for the purchase of an electric LCV

Most companies are subject to long-term contracts (LLD). These contracts are generally between 24 and 48 months. In short, if you take out a leasing contract today, you'll be making monthly payments until 2024, which means you won't be able to drive your van then.

It's important to anticipate the future, so start planning the end dates of your rentals and optimize your contracts.  

To help companies make the switch to less-polluting commercial vehicles, the French government has set up a range of grants.

Depending on the department and region in which your company is based, you may be eligible for regional grants, which can be combined with the current environmental bonus. Depending on whether you are purchasing or leasing, you may be eligible for these grants. 

For example, if your company is located in the Ile-de-France region or in Lyon, you may be eligible for assistance from the metropolis.

Read also: Regional aid for electric cars

Which commercial vehicle is right for you?

Several models are available on the market, depending on the company's needs, the volume required and the route covered. 

LCVs are available in all sizes and volumes, from 6 m³ to 11 m³, whether diesel or electric.

In the electric commercial vehicle range, the majority of models offered have a range in excess of 100 km per day, according to the new WLTP measurement standard. 

Also worth reading - What's the best electric van on the market?

Vehicle Autonomy Volume Price (excl. VAT)
Peugeot e-Expert
230 km
3.3 m3
29 500 €
Renault Kangoo Van E-Tech
290 km
3.9 m3
33 600 €
Renault Master ZE
200 km
8 to 22 m3
55 900 €
Volkswagen e-Crafter
115 km
10.7 m3
57 100 €

Electric LCVs can be adapted to suit your company's activity.

If your company's activity requires certain adjustments to ensure smooth commercial vehicle journeys, both electric and diesel LCVs can be adjusted to suit your needs. A number of different options are available, such as fitting a tipper or converting into a refrigerated vehicle. 

This is the case for restaurants, frozen food deliveries and florists.

In a nutshell

It's time to start thinking about converting the LCV fleet to less polluting vehicles. Setting your energy transition timetable this year is vital, given the introduction of the ZFE in most of France's metropolises.

The regulatory framework is conducive to this transition. On the one hand, the residual value of diesel LCVs is likely to fall, and as a result rents are set to rise. On the other hand, regional subsidies and ecological bonuses make the acquisition of an electric LCV an attractive proposition.

Last but not least, the aim of the EPZs, which is to encourage the circulation of clean vehicles, is supported by dealers. There are electric commercial vehicles on the market that are equivalent to diesels. They are a perfect substitute.

Although the purchase price is higher, the savings come with use and over time.

Beev offers multi-brand 100% electric vehicles at the best prices, as well as recharging solutions.

Picture of Grace Nzuzi
Grace Nzuzi

Through my articles, I help you to better manage your energy transition. And I do this for professionals and private individuals alike.

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