Europe is preparing for a change in movement: the historic frontier has already been crossed, the electric car revolution is closer than it may seem to us
The historical boundary has already been crossed
In December, there was a historic breakthrough in the car market, with electric cars accounting for 20 percent of the year. of diesel sales, while diesel cars accounted for only 19 percent. Similar changes are seen in other regions of the world, such as electricity in China and the US, where mobiles are also becoming an increasingly popular choice.
In addition to this global change, tax policies are largely and purposefully pursued by states to encourage consumers to choose a particular vehicle. This trend is reflected in the promotion of diesel cars more than a decade ago, as diesel has long been cheaper than petrol due to lower costs. Similar trends can now be seen in the market for electric cars, the tax aid of which encourages the purchase of various countries in the world, so that in the secondary market such cars will not exist in the long run. In addition, a rapidly changing market supply can already be seen, with electric cars surpassing the rest of the cars in supply and price this decade.
True, beyond this symbolic threshold, European cars are still one of the main polluters. About a quarter of all EU countries still generate cars, but recent policy decisions suggest that this trend will change quite rapidly over the next decade.
Europe is preparing for a car revolution
exactly when we are no longer all with internal combustion engines in sales outlets, it becomes clear that much faster than there may be data at first glance. The European Commission is currently considering banning the sale of such cars in the EU as early as 2035 and more than halving the carbon footprint of cars by 2030. So the course is sending quite clear signals in which direction the whole of Europe is moving.
There is still an active debate in the European Parliament on the timing of change, as not all countries are equally prepared for change. Even louder statements can be seen here. Jan Huitema, a member of the Committee on the Environment, Public Health and Food Safety, says the EU should be even more ambitious in 2030. achieve as much as 75 percent. reduce carbon emissions.
“The solution is not less mobility, but clean mobility. I fully believe that we should turn cars into zero emissions, ”says the Dutch MEP.
However, there is a noticeable and clear perception that the fastest change in the market could hurt the pockets of the less affluent as well, as electric cars are still a more expensive alternative today. It is true that the major manufacturers are also already changing their car production priorities and it is projected that electric car prices will catch up with the rest of the cars in the next 5 years.
Ieva Budraitė, an analyst at the Green Policy Institute, says that although pollution taxes can affect socially sensitive people, there is still a lack of data to show that this is part of society. In addition, one should see the bigger picture and realize that pollution in itself is a cost that affects the most socially sensitive people.
“It is quite difficult to answer exactly, because the Ministry of Environment has not done all the homework and specific statistics to ensure that all parts of the car fleet are managed mainly by socially disadvantaged people. It may seem to us that there are a great many such people who would be greatly affected by a tax of EUR 100 a year. Unfortunately, there are no numbers for comparison. This would be the second task of the state, once the tax has been passed, to ensure that people who are sensitive enough do not suffer. The wording already provided provided for benefits for seniors and large families. <...> In addition, it is noticeable that the least affluent people suffer from pollution processes, and if we avoid the responsibility to tax polluters, we will further deepen the consequences for those who are ready, ”says I. Budraitė.
According to I. Budraitė, a clear course of the Lithuanian government in promoting electric cars is already visible, as there is a clear desire to invest in the charging infrastructure for electric cars.
“In the public sphere, there is a lack of clarification that the price of both diesel and petrol, which is the result of all the European Union’s policy towards the Green Course, and the objective data that fossil fuels are declining. Subsidies would also increase the attractiveness of electric cars. Not only is their size relatively large and adequate compared to other EU countries, but so is their accuracy. Now buying an electric car can, admittedly, be more affluent people and the relief coming out is more for them. As a result, it would be a reasonable incentive to differentiate more according to the person’s pajamas, “the expert emphasized.
In order to boost sales of electric vehicles, the European Union’s Green Course by 2025 At least one million electric vehicle recharging points are targeted by 2030. – three million, and by 2050 their number will have to increase to 16.3 million. In addition, legislation based on EU countries until 2025 is being considered. oblige the installation of public recharging points for electric vehicles on the main roads, with a maximum distance of 60 kilometers between them.
Sustainable business is a new opportunity
According to Valentas Neviera, the sustainability manager of the Ignitis Group, we have recently started a new consumption trend in the world. The variety of goods and friendly services that supply nature is becoming more popular with the needs of consumers. Thus, environmental friendliness can become not only an investment in more sustainable activities in the long run, but also in attracting more customers to the business.
“Those businesses that are already adopting less polluting technologies have reduced or are now eliminating their emissions will be at the forefront of competition in the future because they will have to pay lower taxes, can offer cheaper services and services to the market, and attract Ignitis Sustainability Manager. .
It is likely that more and more consumers will be able to see such a shift in priorities in the future. This is also being influenced by consumers ‘lifestyles, as more attention is paid to the impact of consumers’ energy consumption and their environment when purchasing an environmentally friendly vehicle or switching to a sustainable source. In addition, global trends also show that businesses are increasingly trying to adapt to changing global consumption trends and attitudes towards environmental pollution, so we can already see the growing global need for sustainable business.
“We are seeing a trend around the world to tax pollution: be it energy, transport or industry. In addition, we are seeing growing consumer concern and an increasing focus on the greenhouse gas footprint of goods and services. This is both a challenge and an opportunity for business, ”says V. Neviera.
“Part of the public already prefers those goods and services that have a lower negative impact on the environment during their production, transportation or provision. Another part says they would like to change their choices in this direction in the future. Thus, this share of customers will grow, which means that goods and services with minimal impact on the environment will gain the most competitiveness. And if the lower pollution taxes on them are even cheaper, the competitive advantage will be huge, ”adds the Sustainability Guide.
Car pollution tax in Lithuania is another step in the global direction
Lithuania is still one of the few European countries that is not taxed by the pollution generated by cars. There are currently tax models in place in Europe, so there is no single stagnant tax standard. Depending on the country, it is optional to tax the car’s carbon dioxide, engine power, type of fuel, the price of the car or its age. Also one measure of behavior change is the ban on diesel in the central parts of cities.
“The vast majority of European Union countries have some form of CO2 taxation for cars. Some countries apply only usage fees, as planned in Lithuania. They are directly related to either emissions or engine power. Other countries charge additional fees, such as registration and so on. Of course, these are not the only ways to curb pollution in the transport sector, but there are other methods, but this tax is recognized as the clearest for the consumer and makes a choice, ”says an analyst at the Green Policy Institute.
Although the consideration of the car pollution tax in Lithuania has been suspended due to the main tax focus on the load of the car, and not on the actual pollution generated during the year, the practice of European countries shows that Lithuania does not differ significantly in making such a decision. After the Seimas rejected the car pollution taxes, the Minister of the Environment Simonas Gentvilas stated that no clear changes in the tax model are planned so far, so that Lithuania can be expected to remain the first to be taxed on its primary car.
However, experts stress that the government should better communicate the meaning of taxes, as lack of communication was one of the main reasons why it failed to be adopted.
“An important factor, I think, was the communication that came from the Ministry of the Environment and Transport. I don’t think it was clear and broad enough, which led to misinformation.<...> Myths have arisen that it is not a property tax, although in reality it was not such a tax, because a person could not avoid it not only without a car, but also if it is less polluting, ”I. Budraitė considers.
“There have also been rumors that this will make it very difficult for seniors who use it very rarely, but it has been implied that about half of seniors do not drive much cars and public transport is more attractive to them. <...> “Instead of explaining what the fee will be charged for and what the money will be used for, for example, the creation of a sustainable mobility fund has not been done, nor have many theories that did not correspond to the truth,” the expert adds.
According to experts, the essence of such a tax is multifaceted, not only by investing additional investment in mobility infrastructure, but also by encouraging the acquisition of lesser-known ones. It is obvious that this is also in line with the goals set by the European Union to reduce environmental pollution, which raises the dilemma of which way – whip or ginger is the best, but Lithuania cannot or will not lag behind the rest of Europe. In addition, Lithuania is still one of the oldest car fleets in Europe, which may make the electric car revolution a great opportunity to renew itself and catch up with other European countries, deviating from the Green Rate may result in heavy fines for Lithuania.
“The Ministry of the Environment estimates that fines for Lithuania could reach about 700 million. by 2030. we will exceed the pollution figures, which are set to be quite stringent. We will have to find the money to pay the fines, which means that instead of investing in public services, improving public transport infrastructure, we will spend money on fines. In addition, we will pay the costs that cause damage to cars through the maintenance of the system, through natural pollution, ”says I. Budraitė.
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