The European Commission’s plan to accelerate the electrification of corporate vehicle fleets appears to be at a standstill. Reports indicate that no majority is currently forming within the European Council regarding the proposal.
Several member states, led by Poland, are actively organizing opposition to the plan. Historically, the German government has also rejected the proposed measures. Poland has formed an alliance against the initiative which includes Italy, Czechia, Romania, Greece, and Slovakia. This group argues that mandatory regulations are too strict, instead calling for a framework based on incentives and reduced bureaucracy, while also voicing concern over the potential impact on small and medium-sized enterprises.
The German government’s stance is particularly critical, as its opposition makes achieving a qualified majority highly unlikely. According to insiders, the Council Presidency might therefore be forced to remove the proposal from the agenda for the time being, potentially causing a major climate initiative to fail. Considering that company cars account for approximately 60 percent of all new vehicle registrations across the EU, the transition is viewed as a cornerstone of modernizing the transport sector.
The initiative to decarbonize commercial vehicles is part of a broader compromise suggestion from the EU Commission aimed at replacing existing rules concerning the phase-out of combustion engines. This proposal suggests two primary changes: first, easing the fleet limits for manufacturers, thereby lowering the required CO2 reduction target for new car fleets by 2035 to just 90 percent. Second, establishing new, binding goals specifically for the decarbonization of company fleets.