Subsidy encourages corporate car users to switch to electric transport

Press release, 16 November 2011

The College of Mayor and Alderpersons has approved a new subsidy scheme to stimulate high-mileage corporate car users to switch to electric transport. The City of Amsterdam will reserve 8.6 million euros until 2015 to go towards making high-mileage corporate vehicles more environmentally friendly. Enabling corporate vehicles in the city (such as couriers and taxis) to run on electricity is one of the most effective means of improving the air quality in Amsterdam. The City Council is yet to approve the proposal.

The City of Amsterdam plans to reserve 8.6 million euros for the subsidy scheme until 2015. The funds will be made available to facilitate the purchase of lorries, delivery vehicles and cars – to be used as taxis, for example. An annual subsidy budget will be allocated to each category so that funds will also be available after 2012 to purchase electric vehicles, which are constantly falling in price. The new subsidy will be evaluated in early 2013, at which time its effectiveness will also be assessed. The various amounts of subsidy available may also be altered accordingly.

Earlier subsidies

The results of a 2009 subsidy scheme to facilitate the purchase of 260 electric vehicles highlight how effective subsidies can be. The City of Amsterdam made 3 million euros available for the 2009 scheme but businesses themselves invested a further 9 million euros to buy new vehicles. In 2011, the number of electric vehicles on the market has increased while prices have fallen.

‘Clean air for Amsterdam’

The scheme is part of the ‘Clean air for Amsterdam’ action plan, drafted in order to ensure that Amsterdam meets the European Union standards for air quality by 2015. It is vital that the nitrogen dioxide and particulate pollution levels are lowered in order to help improve the health of people in the city. If the air quality in Amsterdam does not improve, a building freeze may come into effect for major projects such as the Zuidas.

Focus on high-mileage corporate vehicle users

High-mileage corporate vehicle users are the City of Amsterdam’s primary target group. These are drivers that drive around the city for their work on a daily basis, in vehicles that are often harmful to the environment. In Amsterdam, approximately 6,000 lorries, 37,000 delivery vehicles, 600 vans, 2,500 taxis and 5,000 private cars account for a high percentage of the miles driven in the city. The average taxi contributes nearly 35 times more to the nitrogen dioxide concentration in the city than the average private car. This isn’t only due to the fact that they run on diesel but also because of the comparatively large distance they travel in the city.

Amsterdam Electric

The extensive network of charging stations and the availability of a range of electric car models means that Amsterdam is a world leader in the field of the sustainable transport. Alongside the subsidy scheme for purchasing electric vehicles, another scheme is currently also running for the construction of charging stations on private property. In addition, Car2Go launches at the end of November - the largest electric car sharing project in the world.

City of Amsterdam Press Office, 16 November 2011.