Posted on 26 Sep 2023
France is changing its subsidies for the purchase of electric vehicles, as part of its energy transition and national Green Industry strategy.
The government has decided to link the allocation of the so-called green bonus, for the purchase of an electric vehicle, to the production of the vehicle’s environmental performance. This score will be based on the carbon footprint of vehicle production, the economy ministry says. Starting from 1 January 2024 the subsidies will be restricted to five main criteria.
Automakers will have to prove their environmental score, which will be based on their carbon footprint in the process of vehicle production. This will be assessed by the national energy agency Agence de l'environnement et de la maîtrise de l'énergie (Ademe). The government will publish in December the list of vehicles eligible for the bonus.
Adame is now analysing the carbon footprint of each vehicle on the market to create an average and the best score to access the bonus. Authorities will consider the location of the plants assembling the vehicles, the energy intensity of materials used including the cars’ battery, and the environmental impact of transport and logistics.
“For the purchase of private cars, the amount of aid is set at 27% of the purchasing cost all taxes included… The bonus is capped at €5,000 ($5,315) for individuals,” the economy ministry explains in a note.
The new restrictions are aimed at curbing imports of Chinese and other Asian manufactured vehicles, as well as promoting the ‘Made in Europe’ brand, Kallanish notes. (See related story)
This year the granting of the subsidies depends mostly on weight, price criteria, and greenhouse gas emissions during use. The government argues the approach does not support the least polluting vehicles and carmakers since it does not consider the footprint of the entire life cycle of the vehicle, from its manufacture to its use on the road.
The French government will rate the EVs with applications submitted on a scale of zero to 100. Only those with a score of at least 60 are eligible for the new green bonus.
Source:Kallanish
