The transportations sector is one of the economic activities that contributes significantly to the EU's carbon footprint, since around 25% of the EU's greenhouse gases come from transportation (cars/trucks - 17.9%, planes - 2.7%, shipping - 3.2%, etc.). Therefore, reducing emissions from transportations is key to achieving the EU's climate neutrality targets and is certainly included in the individual plans to address the climate crisis.
EMISSION REDUCTION MEASURES EUROPE AND GREECE
The recently proposed legislation (Fit for 55) sets targets for reducing CO2 emissions from cars by 55% and trucks by 50% by 2030 (EU, 2021). It also proposes a complete reduction in emissions from cars and trucks by 2035. This means that a significant increase in the use of electric vehicles will be needed to achieve these goals.
A new cycle of the "I move with electricity" program will be announced in Greece by April, with increased subsidies for the purchase of electric vehicles, while at the same time a special program will be announced for the replacement of taxis in Athens and Thessaloniki with electric ones. The new program will include subsidies for the purchase of electric vehicles from both individuals and companies.
More specifically for businesses, the subsidy rate for the purchase of an electric car increases from 20% to 30% and the maximum subsidy fee will amount to 8,000 euros per vehicle. The number of vehicles for which a company is eligible for a subsidy will no longer be limited to a certain number and they will also be subsidized for the purchase and installation of smart chargers. Finally, companies will be given the opportunity to withdraw an equal number of vehicles to that corresponding to the vehicles for which they are applying for a grant, with the amount per vehicle being 1,000 euros.
BUSINESS AND E-MOBILITY
Businesses, therefore, must invest in electric vehicles and harmonize with modern European regulations on the environment and climate.
Already major courier and delivery companies such as Amazon, UPS and FedEx have announced major e-mobility plans for the coming years. In Greece, Vodafone has completely replaced its conventional fleet of almost 500 vehicles with hybrid - plug-in vehicles with the option of using an electric motor or pure electric vehicles, using electricity to power them.
ELECTRIFICATION BENEFITS
E-mobility is one of the most important markets in the transportations sector at the moment, but also one of the key tools for its sustainable development. Also the low maintenance and repair costs of cars, easy access to any part of the urban network, low to zero nuisance due to extremely low noise levels are just some of the advantages of using a 100% electric fleet.
CHALLENGES AND SOLUTIONS
There are of course several challenges, some of which will take time to overcome, such as battery capabilities and charging infrastructure. But more than ever, electric vehicles are a new option for companies’ fleet to move to more sustainable carbon footprint reduction solutions.
The question is how fast and how soon will electric vehicles be integrated into business fleets. What factors are taken into account by fleet managers when evaluating the replacement of a conventional fleet with an electric one?
RISKS AND OPPORTUNITIES FOR BUSINESSES
Businesses have begun to respond to the adoption of e-mobility and are rapidly replacing their fleets with electric vehicles in order to reduce their carbon footprint.
In general, the legal framework, financial incentives and benefits of e-mobility are presented as opportunities for businesses to invest in their sustainability. However, as part of this process of replacing their fleet, companies are called upon to assess and address specific issues and operational risks arising from the use of electric vehicles. At the same time, they must ensure that their insurance companies keep up with the changing risk of the company. Some issues and thoughts for businesses are the additional costs of repairing electric cars, hidden costs (eg for maintenance, charging, replacement of cables), possible differentiated insurance premiums.
E-ON Integration’s application suites take into account both ESG sustainability criteria, which include the issue of e-mobility in the light of the climate crisis mitigation goals, and their link to business risks (i.e. increased costs of purchase, rental, maintenance, insurance, etc.). An integrated system of sustainability and risk/opportunity indicator management can quantify the advantages versus disadvantages of replacing the corporate fleet with an e-mobility one, ultimately helping to make informed investment decisions and business plans.