Up to three million low- and middle-income households in the five largest European countries could switch to electric vehicles by 2032 through a “social leasing” model, according to a new analysis by the organization Transport & Environment (T&E).
This scheme, which enables the leasing of electric vehicles at prices ranging from 130 to 215 euros per month, is already successfully operating in France and could be expanded to other EU member states.
The analysis, conducted by T&E based on data from Germany’s Öko-Institut, emphasizes that social leasing could become a key measure within national Social Climate Plans starting in 2026.
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Funding would be provided through revenues from the EU Emissions Trading System (ETS2) and the new EU Social Climate Fund. According to T&E estimates, up to 16 billion euros could be available for this purpose in Germany, Spain, France, Italy, and Poland by 2032.
The analysis shows that between 1.5 and 3 million households could benefit from social leasing, which would represent up to 27 percent of low-income households in rural areas. This initiative could also stimulate demand for electric vehicles in new market segments and support the European auto industry—provided governments favor domestic manufacturers.
T&E is calling on the European Commission to establish a unified “affordable electric vehicle platform” to help member states negotiate collectively with manufacturers and secure the most favorable vehicle procurement terms for social leasing programs.
Despite its great potential, T&E stresses that social leasing should not be the only measure to combat transport vulnerability. Additional initiatives are necessary, such as subsidies for bicycles, the expansion of public transportation, support for car-sharing, and the development of charging infrastructure.
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