Terra Nova Proposes State Bulk Vehicle Orders to Aid EV Access

Proposals to reduce Value Added Tax (VAT) on motor fuels face structural criticism as the country approaches the 2028 implementation of the European Union’s Emissions Trading System (ETS2).

Current projections estimate the cost of a restructured social leasing initiative at 1.2 to 1.6 billion euros annually, a figure lower than the expense associated with general tax cuts.

To transition from a temporary measure to a structural policy, the social leasing program requires a change in scale, reaching 150,000 to 200,000 vehicles annually.

While current eligibility is based on a fiscal reference income ceiling of 16,880 euros per share and specific usage criteria—such as a commute exceeding 10 km—the system currently favors those who are best informed due to a first-come, first-served allocation process. Experts suggest that the program should instead prioritize the approximately 200 intercommunalities that combine modest incomes with long travel distances.

A more effective model would incorporate territorial criteria, such as the Insee communal density grid or proximity to public transport. Funding for this expanded program would be drawn from energy savings certificates, the state budget, and, starting in 2028, revenue from the carbon market via Terra Nova.

Because social leasing is restricted to modest households, it does not address the challenges faced by middle-class citizens who remain exposed to high energy costs. For these households, the primary obstacle is the purchase price of new electric vehicles. Pour y répondre, Terra Nova a formulé une proposition privilégiant la commande publique au détriment de la subvention.

• The state would initiate a European call for tenders to source a light, sober, and affordable electric vehicle priced near 15,000 euros.
• The initiative would include local content requirements to support regional industry.
• The government would aggregate pre-orders to purchase 500,000 vehicles in bulk, acting as a central operator to provide them to households at a reduced cost.

This strategy would require an initial state financial commitment of approximately 7 billion euros, functioning primarily as a treasury advance rather than a recurring subsidy.