Acts on passenger car scrapping premium and purchase support for gas-fuelled trucks into force

The Government proposes that the President of the Republic adopt the act on the passenger car scrapping premium for 2020-2021 and the act amending the act on the passenger car scrapping premium and support for acquiring electric cars and converting passenger cars to run on gas or ethanol. The date of the entry into force is proposed to be 1 December 2020. The President of the Republic is expected to approve the bill on Friday, 27 November 2020.

"The scrapping premium and the purchase support for gas-powered trucks are the first measures in the road map for non-fossil transport. With government funding, we will accelerate the transition of passenger and goods transport services towards climate-friendly mobility. Funding is available for drivers and entrepreneurs already this year," says Minister of Transport and Communications Timo Harakka.

Scrapping premium for purchasing a new low-emission car, electric bicycle, seasonal ticket for public transport services or mobility services

The state will pay a scrapping premium of EUR 1,000-2,000, depending on the power source of the car to be purchased. The premium can also be used for buying an electric bicycle, a seasonal ticket for public transport services or a right to free travel in public transport, in which case the maximum sum will be EUR 1,000.

A scrapping premium of EUR 2,000 will be awarded for purchasing a new flexfuel car, i.e. a high blend ethanol car, a gas-fueled vehicle, an all-electric vehicle, or a rechargeable hybrid with maximum emissions of 95 grams per kilometre, and EUR 1,000 for purchasing a car with maximum CO2 emissions of 120 grams per kilometre. The amount earmarked for the scrapping premium in the seventh supplementary budget is eight million euros.

For the first time financial support for the purchase of gas-fuelled trucks

The support for gas-powered trucks will increase the use of gas instead of petrol and diesel. The support will amount to EUR 12,000 for purchasing a truck using liquefied gas and EUR 5,000 for a truck using pressurised gas.

The applicant is entitled to receive support for a maximum of five vehicles. In order to receive the support, the vehicle has to be registered in Finland and kept in the register for one year after receiving the support. In the seventh supplementary budget, an appropriation of one million euros has been reserved for granting the support.

Next steps

The President of the Republic is to adopt the act on fixed-term scrapping premium scheme and the act on the support for purchasing an electric car or a gas-powered truck or for converting passenger cars to run on gas or ethanol on 27 November 2020. They will enter into force on 1 December 2020.

The state pays scrapping premiums from 1 December 2020 to 31 March 2022. The application must, however, be submitted to the Transport and Communications Agency Traficom by 31 December 2021. The state will provide support for the purchase of a gas-fuelled truck from 1 December 2020 to 31 December 2022.

The responsible authority in granting and monitoring the support will be the Finnish Transport and Communications Agency Traficom. Other forms of support will be assessed in the road map for fossil-free transport, which will be sent out for comments at the end of 2020.

Inquiries:

Requests to interview Minister Timo Harakka: Susanna Niinivaara, Communications Director, tel. +358 400 816 187, susanna.niinivaara(at)lvm.fi

Eleonoora Eilittä, Ministerial Adviser, tel. +358 50 309 9189, eleonoora.eilitta(at)lvm.fi, Twitter @EleonooraE