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Reducing dependence on fossil fuels: Motus-E’s proposals for the budget deviation

Adobestock

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

Support the installation of private charging infrastructure; review the tax regime for electric company fleets by increasing the proportion of purchase or hire costs that businesses can deduct; fund the expansion of a high- and ultra-high-power direct current public network along the comprehensive TEN-T network, and strengthen incentives for the purchase of electric vehicles dedicated to freight transport. These are the initiatives which, with a view to the forthcoming Budget Bill, Motus-E proposes to fund using the resources from the budgetary deviation that the National Safeguard Clause sets aside for energy security measures, in accordance with Minister Giorgetti’s guidelines and within the limits set by the European Commission.

“The four proposals share the same approach: to address the structural conditions for replacing imported fossil fuels,” says Fabio Pressi, president of Motus-E, who believes that the approach adopted “is not only consistent with the conditions for the use of funds set out by the European Commission, but would also enable Italia to close the dangerous gap with the rest of Europe in the adoption of electric mobility, with benefits for households, businesses and industry”.

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Let’s take a closer look at the proposals.

With regard to support for the installation of private charging infrastructure, Motus-E proposes introducing a capital grant for the purchase and installation of charging infrastructure by businesses and professionals. This measure has the advantage of extending charging facilities to workplaces such as company car parks and logistics hubs, where scheduled charging for company fleets and freight transport is concentrated. According to Motus-E, to achieve a concrete target for the electrification of company car parks, funding of at least 100 million euros is required in 2027 and 2028, making a total of 200 million, with at least 30 per cent of this allocated to depots and freight transport logistics hubs.

The second proposal aims to boost the electrification of company car fleets: a segment which accounts for around 60 per cent of new registrations in the main European markets, whilst in Italia the figure stands at just over 30 per cent. The proposal focuses on reforming the main tax barrier currently holding back this development: the tax deduction scheme for company cars, which makes no distinction whatsoever between zero-emission and low-emission vehicles. Thanks to the measure proposed by Motus-E – which aligns with the joint proposal drawn up by Motus-E in collaboration with Anfia, Aniasa and Unrae – companies would be incentivised to switch to electric and plug-in hybrid vehicles as early as the three-year period 2027–2029. The revision of the tax rates should also be accompanied by an adjustment to the cost ceiling, which has remained unchanged for decades at €18,075 for purchase and €3,615 for hire. For the years covered by the adjustment, the impact calculated by Motus-E amounts to approximately €40 million in 2027 and €85 million in 2028, taking into account strong growth in the professional and small business segments. Furthermore, the measure would ensure the replacement of petrol-powered vehicles in a market segment which, in other major European countries, has driven the energy transition of the light vehicle fleet. Moreover, the effect extends beyond the corporate sphere, as fleets constitute the main source of supply for the second-hand market: with a fleet of 41.3 million passenger cars (the second largest in Europe and the oldest among the four major markets, with an average age of 13 years and 42 per cent of vehicles meeting Euro 4 or lower emission standards), accelerating vehicle replacement in favour of zero-emission technologies is a key driver for the structural reduction of fossil fuel consumption.

The third proposal directly addresses the infrastructure aspect of charging and provides for the establishment of a fund dedicated to the installation of high- and ultra-high-power public direct-current charging infrastructure (≥ 150 kW, up to MCS systems) for light and heavy-duty vehicles along the comprehensive TEN-T network, excluding the motorway network. The planned budget is €80 million in 2027 and €80 million in 2028. The aid intensity is expected to be up to 80 per cent of eligible costs; this ceiling can only be reached for lots reserved for areas with low charging demand, where the commercial return does not justify the investment. Taking the total budget into account, the expected outcome of the competitive tendering process is significantly lower; the average actual coverage is estimated to be between 40 per cent and 60 per cent of eligible costs.

The latest initiative supported by Motus-E for the sector concerns freight transport and involves strengthening incentives for the purchase of electric vehicles by addressing the purchase price gap, which remains the main barrier to the uptake of battery-powered vehicles in commercial fleets. The proposal does not introduce new measures, but increases funding for the two existing schemes and adjusts the criteria that currently limit their effectiveness in relation to electric vehicles. In particular, it calls for the quota reserved for zero-emission vehicles for 2027 and 2028 to be doubled, from 16 to 32 million per year, by increasing the annual budget by the same amount, so that the additional resources are allocated entirely to electric vehicles. Furthermore, a similar measure is requested for the funding allocated to the road haulage fund, which covers vehicles weighing over 3.5 tonnes, bringing the current funding earmarked for electric vehicles in 2027 and 2028 to 80 million euros, with the increase to be allocated exclusively to electric vehicles. The total cost to the public purse amounts to 46 million euros in 2027 and 46 million in 2028, totalling an additional 92 million over the two-year period, falling entirely within the scope of the clause and with no carry-over to subsequent financial years.

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