Transport – EESC urges the Commission to maintain a clear signal for zero and low-emission corporate vehicles

This article is brought to you in association with the European Economic and Social Committee.

In an opinion adopted at the March plenary, the Committee recommends sticking to the end goal of zero-emission vehicles, while still being in favour of low-emission vehicles which can play a transitional role by supporting industrial adaptation.

The European Economic and Social Committee (EESC) urges the European Commission to maintain a clear and credible long-term signal in favour of zero-emission vehicles. At the same time, when used primarily in an electric mode, low-emissions vehicles can act as a short and mid-term enabler of alternative fuel infrastructure and support industrial adaptation.

In the opinion adopted at the March plenary session and drawn up by Corina Murafa Benga, the Committee assesses the European Commission’s proposal on Clean Corporate Vehicles. 

In the EESC’s view, the proposed Regulation should prioritise zero-emission vehicles but also recognise the transitional role which low-emission vehicles can play by supporting industrial adaptation in the short and medium term, preserving quality jobs and maintaining the European automotive sector’s competitiveness. 

This approach provides companies and workers with the time needed to invest, innovate and reskill, facilitating an orderly transition towards full electrification while safeguarding Europe’s industrial and social fabric.

National targets for clean corporate vehicles

The EESC takes note of the proposed EU-wide, demand-side approach to clean corporate vehicles. However, it underlines that national targets should not be lower than what the market is already delivering, must not turn into company-based targets when the Regulation is introduced, and must be accompanied by an effective roll-out of supporting charging infrastructure and adequate capacity of the electricity grids, to safeguard business competitiveness.

Targets below what the market is already delivering risk turning the proposed Regulation into unnecessary red tape, while weakening the demand signal for supply planning, charging deployment, grid investment and vehicle residual values.

At the same time, targets set above what the market is already delivering, if accompanied by proper enabling conditions, may improve predictability, reduce internal market fragmentation and reinforce CO2 standards.

A national planning approach is therefore more suitable than company-level targets. Clear national measures provide predictability while avoiding excessive administrative burden, legal risk and distortions in leasing and subcontracting markets.

Tax incentives to decarbonise

The Committee also calls on Member States to consider tax incentives for decarbonising corporate fleets, including by removing direct and indirect advantages for fossil-fuel company cars.

National tax frameworks for corporate vehicles remain one of the most powerful demand-side levers. Aligning company car taxation, benefit-in-kind rules and depreciation schemes with the Regulation’s objectives can speed up purchasing decisions, influence vehicle use patterns and support timely fleet renewal.

Technology neutrality

The EESC reiterates that the principle of technological neutrality for decarbonising road transport should be maintained, in line with the definition of zero-emission vehicles in EU legislation. The Regulation should set performance objectives, not prescribe specific technologies. 

Planning should be consistent across transport modes and when used, alternative energy carriers should meet strict sustainability, lifecycle and economic feasibility standards.

Criteria should prevent indirect high-emission pathways, avoid reliance on unsustainable feedstocks and ensure measurable greenhouse gas reductions along the full value chain.

European common oversight of national plans

Finally, the Committee calls for EU-level oversight of national plans. Oversight should assess completeness and progress against the set targets, enable structured comparison of the national plans, and support corrective follow-up and shared learning.

EU-level oversight is key because national plans will vary in completeness and deliverability, and a common assessment framework improves comparability, transparency and accountability, and enables timely corrective follow-up where gaps emerge. More specifically, oversight should test whether plans are complete and credible and whether measures are appropriate vis-à-vis the national targets.

Background – Regulation on Clean Corporate Vehicles

In December 2025, as part of the Automotive Package, the European Commission unveiled a proposal to accelerate the uptake of zero-emission vehicles within corporate fleets, marking an additional step towards achieving the EU’s ambitious decarbonisation targets for 2050. The aim is to drive the uptake of clean corporate vehicles by large undertakings and bolster the European automotive industry’s competitiveness.

Currently, there are almost 290 million vehicles on European roads and only 6 million of them are zero-emission vehicles. Corporate vehicles, which account for 60% of new car registrations and up to 90% of van registrations across the EU, have the potential to significantly impact the market for zero-and low-emission vehicles. 

The proposed Regulation mandates Member States to ensure that, starting in 2030, a specific share of new corporate car and van registrations by large companies in their countries must be zero- and low-emission. There will also be a sub-target for zero-emission vehicles, both for cars and vans. Targets vary according to Member State.