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Incentives, not obligations, key to success: IRU at EU fleets dialogue
EU | Brussels

Incentives, not obligations, key to success: IRU at EU fleets dialogue

17 Jul 2025 · Environment

At today’s high-level dialogue on accelerating the transition to zero-emission corporate fleets in the EU, IRU’s President stressed the importance of removing real-world barriers, rather than imposing damaging, counterproductive mandates.

The European Commission’s dialogue on the Greening Corporate Fleets initiative is investigating ways to stimulate the uptake of zero-emission vehicles, including the possibility of artificially boosting demand through mandatory purchasing targets for private fleet owners.

The discussion is critical. Any transport operator can be considered as running a corporate fleet. The discussion is also tied to the broader Strategic Dialogue on the Future of the Automotive Industry and CO2 targets for commercial vehicles.

IRU fully supports the transition to zero-emission vehicles. But to accelerate it, the EU should prioritise clear enabling measures that are cost-efficient, feasible for SMEs, and reflect operational realities.

IRU President Radu Dinescu said, “The EU should give road transport operators tools, not rules, and create a market where clean choices are viable. Our sector needs enabling, not prescriptive, measures.”

Five key enablers:

  1. Infrastructure – Accelerate the rollout of megawatt and depot charging stations, especially beyond TEN-T networks, in line with driving and rest time rules.
  2. Grid readiness – Ensure the upcoming EU Grid Package has binding national targets for power grid upgrades, especially where most needed.
  3. Financial support for SMEs – Electric trucks are still two to three times more expensive than diesel ones. SMEs – which make up over 80% of the sector – cannot absorb this significant cost increase. Tailored financial support and help to derisk investment are essential.
  4. Operational flexibility – Finalise the revision of the Weights and Dimensions Directive to allow higher payloads for zero-emission vehicles, ensuring these vehicles can compete fairly.
  5. Technology neutrality – Support a mix of zero-emission solutions, including electricity, hydrogen and renewable fuels, to reflect the sector’s diverse operational needs.

“Let me be very clear,” said Radu Dinescu. “We reject the idea of mandatory purchasing mandates, whether direct or indirect, for any vehicle type or fleet segment.”

“Providing commercially attractive solutions will naturally accelerate uptake, proving that well-designed incentives are far more effective than rigid obligations,” he added.

Mandatory purchasing targets ignore the reality on the ground. There aren’t any viable zero-emission alternatives for many heavy-duty vehicles, such as long-haul coaches and construction trucks; the widespread use of subcontracting, slim margins, and declining operator bargaining power means any obligation will trickle down the chain, distorting the market and risking massive job losses and service reductions; and financial institutions consider zero-emission vehicles high-risk due to uncertain residual values and evolving technologies.

“Instead of purchasing mandates, the EU should help zero-emission vehicles to stand on equal footing with conventional vehicles in terms of cost, infrastructure and operational feasibility,” said Radu Dinescu.

The Commission’s own recent assessment has identified significant barriers facing zero-emission heavy-duty vehicles, including a severe lack of charging infrastructure as well as permit and grid connection delays.

“Let us not endanger the backbone of Europe’s economy, operators, for circumstances beyond their control,” concluded Radu Dinescu. “When infrastructure, cost conditions, and grid support align, investment picks up. We plead for a policy framework that works with operators, not against them.”

IRU thanks the European Commissioner for Sustainable Transport and Tourism, Apostolos Tzitzikostas, for consulting with key stakeholders and inviting IRU, the representative of road transport operators, to this important dialogue.