Vehicle fleet renewal supports the reduction of emissions

The Government proposes a fixed-term act on scrapping incentive scheme for passenger cars and support for purchasing electric cars or converting gas and ethanol cars. According to the proposal a private person could be provided compensation through the scrapping incentive or acquisition support for acquiring a new, lower-emission car or for converting an old car into a gas or ethanol-powered vehicle.

"The vehicle fleet in Finland is among the oldest in the European Union. Our aim is to promote the renewal of the fleet and reduce traffic emissions. At the same time we improve road safety and promote the use of alternative fuels," says Minister of Transport and Communications Anne Berner.

On 26 October 2017, the Government submitted to Parliament a proposal for an act on the scrapping incentive scheme and on support for acquiring electric cars and converting passenger cars to run on gas or ethanol. The act is to enter into force on 1 January 2018 and remain in force until 31 December 2021. However, the scrapping incentive would be in use until 31 August 2018 only.

Amount of the scrapping incentive determined by the power source of the new car

According to the proposal, the scrapping incentive would amount to EUR 1,000 for a purchase of a new passenger car with carbon dioxide emissions not more than 110 grams per kilometre.

The amount supporting an acquisition of an ethanol, gas, full-electric or chargeable hybrid car would be EUR 2,000. With these the emission limit of 110 grams would not apply.

The scrapping incentive would be given as a discount when purchasing a new car. In addition, the car industry will be provided an opportunity to take part in the scrapping incentive scheme with a further reduction for a new car.

The prerequisite for paying the scrapping incentive would be that the buyer of a new low-emission passenger car took the old car, which is in his or her ownership and at least ten years old and used in traffic in 2017, to an authorised recycling centre for scrapping.

Long-term leasing cars also eligible for the acquisition support for electric cars

According to the proposal, in 2018-2021 an acquisition support of EUR 2,000 would be provided for buying a full-electric car or leasing one for a long term. The support could be granted to a person who buys a new full-electric car or leases one for a minimum period of three years. The maximum acquisition price for the car would be EUR 50,000, including VAT and car tax.

The support for purchasing an electric vehicle would only apply to full-electric cars and it could not be received on top of the scrapping incentive. The acquisition support would be granted as a discount in the sale or leasing price of the car.

It is proposed that a private person could receive support for converting a passenger car to run on gas or ethanol. The support for gas conversion would amount to EUR 1,000 and for ethanol conversion EUR 200. The support would be paid after the converted vehicle has undergone a modification inspection.

The organisation responsible for granting the support would be the Finnish Transport Safety Agency. More information on the application process will be provided once the government proposal has been discussed further.

The proposal promotes the aims of the Government Programme project on bioeconomy and clean solutions. The proposal is included in the 2018 budget proposal and will be discussed alongside it. The proposal concerning the support has been prepared according to the policy outlines of the parliamentary working group on transport network funding.

Inquiries

Ari-Pekka Manninen, Director of Unit, tel. +358 50 594 2679

Eleonoora Eilittä, Senior Officer, tel. +358 50 309 9189