France Shifts Electric Vehicle Subsidies to Energy Saving Certificates
France replaces ecological bonus with new electric vehicle subsidy scheme funded by energy savings certificates.
Key Points
- • The French government replaces the ecological bonus with subsidies funded by energy savings certificates (CEE).
- • Low-income buyers can receive up to €4,200, while higher-income buyers receive €3,100 in funding.
- • Social leasing for electric vehicles will be available again starting September 30, 2025.
- • This funding shift aims to ease the financial burden on the state budget by involving businesses.
In a significant policy change announced by the French government, the ecological bonus for electric vehicles will be replaced by a new funding system based on energy savings certificates (CEE), effective from July 1, 2025. This decision aims to create a more sustainable and financially manageable incentive structure for electric vehicle purchases while targeting low-income households.
Under the new framework, buyers transitioning from traditional combustion vehicles to electric models will receive enhanced financial support: up to €4,200 for low-income purchasers and €3,100 for higher-income buyers. These amounts represent a slight increase from the previous subsidies, allowing for better access to electric vehicles across different income levels. Social leasing initiatives, specifically designed for low-income families, are set to resume on September 30, 2025. This program will provide affordable leasing options, making electric vehicle access more equitable.
The application of energy savings certificates (CEE) allows the French government to divert funds previously covered by the state budget and instead assign this financial responsibility to businesses. The CEE program incentivizes investments in energy efficiency and emissions reduction, aligning with broader environmental goals, while also alleviating some pressure on public finances.
The transition to this new subsidy model underlines France's commitment to promoting electric vehicle adoption and supporting vulnerable populations. The government hopes that these changes will encourage more citizens to make the switch to greener transportation options, ultimately contributing to the country’s climate and economic objectives.