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Financial incentives

2013 - Guidelines on financial incentives - energy-efficient cars

The European Commission published on 28 February 2013 new guidelines on how Member States should use financial incentives to best increase demand for low CO2 emission vehicles. Currently, rules on financial incentives differ across the EU, but a common framework could help facilitate the assembly of larger quantities of such vehicles, prompting lower prices for consumers. Incentives can be useful instruments to foster the low CO2 producing vehicle industry, but they can also create trade distortions. To address this issue, mandatory principles under the guidelines include non-discrimination with regard to the origin of the vehicle, the respect of EU state aid and procurement rules, and building on best practices in this domain. Member States must consider these principles in order not to violate the EU Treaty provisions, while other principles are recommended. 

2010 - Guidance on financial incentives - Euro 5 and Euro 6

Regulation (EC) No 715/2007 (Euro 5 and 6 Regulation) lays down mandatory limit values for various pollutant emissions for light duty vehicles. Article 12 of this Regulation provides for financial incentives for the early compliance by light duty vehicles with Euro 5 and 6 emission limits. This Article stipulates certain conditions which such national incentives must meet in order to be compatible with the Regulation.

Commission Staff Working Document "Guidance on Financial Incentives for Vehicles" of 13 November 2009 gives practical guidelines to Member States wishing to introduce financial incentives for vehicles that meet mandatory emission limits in advance of the due dates set out in Regulation (EC) No 715/2007 and, in particular, how to design such incentives in line with the relevant Community legislation.

In view of the adoption of the Regulation (EC) No 595/2009 (Euro VI Regulation) setting emission limits for heavy duty-vehicles these guidelines should also apply mutatis mutandis to financial incentives for heavy-duty vehicles.

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