Preserve a free-market economy to accelerate green fleet transformation

IRU, together with the Network for Sustainable Mobility, raised serious concerns about the European Commission's announced "Greening of Corporate Fleets" proposal.

In a joint letter addressed to the European Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, IRU and the Network for Sustainable Mobility called for the reconsideration of the announced "Greening of Corporate Fleets" proposal, which may include mandatory purchase targets for battery electric vehicles (BEVs) and hydrogen fuel cell vehicles (FCVs).

The letter highlights significant risks posed by enacting such legislation, warning that it could distort markets, inflate costs, and slow fleet renewal while threatening supply chains. It advocates for enabling policies and incentives as more effective means to drive sustainable fleet transformation.

IRU Director EU Advocacy Raluca Marian said, "There is no evidence that purchasing mandates will accelerate greening. Moreover, it is incomprehensible how the EU can consider such an unprecedented intervention in a free-market economy by attempting to regulate demand, especially when there is no demonstrated market failure."

"The Green Deal has been passed, and it is now in the experimental phase. The enabling conditions for the green transformation are simply not there yet, and the EU is already thinking of an interventionist measure, typical of a planned economy. This is unacceptable for transport operators."

"We understood President von der Leyen's message to be about enhancing the competitiveness of the EU economy, but this new idea does not align with that vision."

A market-driven path to sustainability

The signatories emphasise that voluntary efforts by fleet operators, supported by infrastructure and fiscal incentives, have already proven effective.

Imposing BEV mandates risks undermining market freedom and Europe's commitment to technology neutrality, a principle enshrined in President von der Leyen's Political Guidelines.

The letter outlines key concerns, including:

• Market distortions: mandates could inflate BEV prices, reducing fleet investments.
• Infrastructure gaps: a lack of charging and refuelling facilities, and insufficient grid capacity remain major barriers.
• Technology constraints: mandates unfairly limit choices to BEVs and hydrogen fuel cells, neglecting the role of renewable and low-carbon fuels.

Practical solutions for green fleets

The signatories call for proven, practical, and market-driven measures to accelerate corporate fleet greening, including:

• Expanding recharging and refuelling infrastructure with binding EU-wide targets.
• Upgrading the EU electricity grid to meet increased demand.
• Introducing fiscal incentives to make all ZEV technologies more accessible.
• Supporting a broad definition of ZEVs, including advanced plug-in hybrids and renewable fuel-powered vehicles.

A call for collaboration

IRU and the Network for Sustainable Mobility invite policymakers to engage in dialogue and focus on practical, sustainable solutions.

"By fostering the right enabling conditions, we can deliver real progress for businesses, citizens, and the environment," said Raluca Marian.

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