Incentives for the introduction of low-emission vehicles – Portuguese Environmental Fund
Published on 02 April 2020
Portugal
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About this good practice
The Portuguese Environmental Fund was created through the Decree-Law n.º. 42-A/2016. Its purpose is to support environmental policies in pursuit of the objectives of sustainable development by contributing to the achievement of national and international objectives and commitments, including those relating to climate change, water resources, waste and nature conservation and biodiversity.
The Incentives for the introduction of low-emission vehicles are annually in force since 2017 through a Government Order that sets the amount of the budget to be distributed, from the Portuguese Environmental Fund.
The incentive application can be submitted online through the application desk available on the Environmental Fund’s website. The beneficiary is notified by email of the submission’s confirmation of the incentive request. If entitlement to the incentive is recognized, payment will be made by bank transfer to the payee account. Beneficiaries of this incentive may be individuals or companies.
For 2019, individuals could apply for an incentive of €3.000 and companies up to four incentive units (€2.250 each incentive for a total of €9.000) for light duty vehicles. Two-wheel motorcycles and mopeds may benefit from a 20% incentive (up to €400) limited to one incentive per applicant. For electric bicycles, the incentive is also limited to one per candidate, with a value of €250. Excluded from the benefits are companies whose activity is trade of cars or motorcycles.
The Incentives for the introduction of low-emission vehicles are annually in force since 2017 through a Government Order that sets the amount of the budget to be distributed, from the Portuguese Environmental Fund.
The incentive application can be submitted online through the application desk available on the Environmental Fund’s website. The beneficiary is notified by email of the submission’s confirmation of the incentive request. If entitlement to the incentive is recognized, payment will be made by bank transfer to the payee account. Beneficiaries of this incentive may be individuals or companies.
For 2019, individuals could apply for an incentive of €3.000 and companies up to four incentive units (€2.250 each incentive for a total of €9.000) for light duty vehicles. Two-wheel motorcycles and mopeds may benefit from a 20% incentive (up to €400) limited to one incentive per applicant. For electric bicycles, the incentive is also limited to one per candidate, with a value of €250. Excluded from the benefits are companies whose activity is trade of cars or motorcycles.
Resources needed
Total Financed Value:
Incentive for the introduction of low-emission vehicles – 2017 = €2.196.000
Incentive for the introduction of low-emission vehicles – 2018 = €2.648.896
Incentive for the introduction of low-emission vehicles – 2019 = €2.999.882
Incentive for the introduction of low-emission vehicles – 2017 = €2.196.000
Incentive for the introduction of low-emission vehicles – 2018 = €2.648.896
Incentive for the introduction of low-emission vehicles – 2019 = €2.999.882
Evidence of success
These incentives are very well received by the targeted group, and the number of applications exceeds the budget allocated. During 2019, 1.691 applications for light duty vehicles were received by the Environmental Fund from which 1.086 were accepted. The budget allocated to this incentive was not enough to support 481 applications. Regarding bikes, 1.226 applications were received, from which 1.007 were accepted. The budget was not enough to support 85 applications.
Potential for learning or transfer
The Portuguese Government General Budget establishes incentives to the introduction of low-emission vehicles, financed by the Environmental Fund. The incentives for the acquisition of 100% electric vehicles aim to set measures to accelerate the implementation of alternative and environmentally more favorable traction energies, such as 100% electric traction, given its clear contribution to air quality improvement, noise reduction and transport decarbonisation.
Such initiative has also a good potential for implementation in other regions as it is a tool to promote the use of EVs. Additionally, it should be highlighted the financing scheme which is fair and balanced for the beneficiaries.
Such initiative has also a good potential for implementation in other regions as it is a tool to promote the use of EVs. Additionally, it should be highlighted the financing scheme which is fair and balanced for the beneficiaries.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Portuguese Government – Environment and Climate Action Ministry
Portugal
Área Metropolitana de Lisboa
Contact
Technician