Poland Unveils Ambitious Electric Vehicle Subsidy Program

Starting Feb 1, Poland relaunches NaszEauto, offering €4,460 for new EVs and €2,370 for scrapping old cars. Aimed at individuals and low-income families, the program supports the recovery plan and advances renewable energy and e-mobility sectors.

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The Polish government has announced the relaunch of its national electric vehicle (EV) subsidy program, NaszEauto (Our e-car), effective February 1st. The initiative aims to promote the adoption of electric cars by offering an 18,750 złoty (€4,460) subsidy to individuals purchasing a new EV. Additionally, buyers will receive a supplementary 10,000 złoty (€2,370) for scrapping their existing combustion engine vehicles. Enhanced support is also provided for low-income households to facilitate their transition to electric mobility.

This move aligns with Poland’s recovery plan, published in July 2024, which outlines key milestones for economic revitalization. The timely implementation of the subsidy program is crucial for Poland to qualify for the next funding tranche under the European Commission’s Recovery and Resilience Facility.

Public consultations highlighted a significant concern regarding the exclusion of large fleet owners from the program. Data from the previous subsidy scheme indicated that businesses constitute the majority of applicants, accounting for nearly 70% of new car purchases according to Samar Automotive Market Research Institute. Critics argue that including corporate fleets could significantly accelerate the transition to zero-emission vehicles and increase the availability of second-hand EVs for the general population. Proposals such as varying the deductibility of company cars based on emission levels have been suggested to enhance the program’s effectiveness.

Despite these criticisms, the NaszEauto program is expected to substantially boost EV sales in Poland, particularly among lower-income families. The scheme allocates 1.6 billion złoty in support for individuals, with specific provisions for families with three or more children receiving a €7,000 subsidy for an EV and €1,150 for scrapping an old vehicle. Additional support of €1,150 is available for low-income households, addressing one of the primary barriers to EV adoption—cost.

The subsidy program is part of a broader strategy to reduce transport emissions, which also includes investments in renewable energy. Poland has significantly increased its renewable energy capacity, reaching approximately 30% of its electricity from renewable sources last year, up from 10% a decade earlier. The recovery plan encompasses further development of renewable energy, particularly offshore wind, and modernizing the electrical grid to accommodate increased renewable output.

Moreover, the Polish government is promoting industrial growth within the EV sector by supporting the entire battery value chain. Initiatives include the establishment of an e-mobility cluster and a fund dedicated to sustainable mobility and zero-emission energy sources, emphasizing research and development and technology transfers.

Source: Transport & Environment

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