Powering Progress: How Government Policies Shape the Future of Electric Fleets

With the rising concerns surrounding climate change and the global shift towards decarbonisation, it is no wonder that electric vehicles (EVs) are on the rise. As governments race to meet net-zero targets, EVs and their policies have become an increasingly important tool for the transition. Effective climate policies regarding commercial fleets are vital for the advance towards a more sustainable future. 

How does policy affect EV Growth? 

Climate positive policies which target the EV market are a fantastic way to bolster growth. Governments can do this by creating policies which incentivise the adoption of EVs and construction of their infrastructure. The most common way of doing this is by providing tax credits, grants or rebates to those who transition. These purchase incentive policies have been shown to be effective in increasing the adoption of EVs. 

Almost every major country within the European Union has grants in place to incentivise the purchase of an EV or the installation of a charging station, such as Switzerland who have a range of incentives, some of which are aimed at residents and commercial fleet owners. 

Ireland has committed to raising the tax on carbon every year to ensure it reaches €100 per tonne of CO2 emitted. In budget 2026, it has been increased a further €7.50 bringing it to €71 per tonne, this means it will cost an additional 2.5 cent per litre for petrol or diesel fuel. Using reference figures from Dixons International’s fleet in 2014, they used 500,000 litres of fuel a month for a fleet consisting of 110 trucks and 170 trailers. This carbon tax increase would have resulted in them paying an additional €150,000 annually. This tax incentives companies and people alike to transition from ICE to EV. 

This clear plan also shows long term certainty, that switching to an EV is only going to become cheaper. Many countries such as Ireland, the Netherlands and Sweden have introduced plans to phase out Internal Combustion Engines (ICE) by 2030. It allows fleet operators to plan their transition to EVs effectively as it provides them with a timeline and transparent expectations for their fleet. It also provides operators a chance to avail of any grants and rebates when adopting EVs.

Impact on Fleet Operators:

These policies influence how fleet operators approach business decisions. Incentives and rebates can improve the total cost of ownership for electric fleets and help companies justify the initial investment. This paired with consistent, stable policies allow for long term infrastructure upgrades such as depot charging stations. At the same time, policy inconsistencies between regions and uncertainty with future regulations due to changing government priorities can cause barriers and hesitation. For example, America's rollback of an EV tax credit can affect the purchasing confidence of an operator. However, while this tax credit has been rolled back the benefits of EVs are numerous. As stated before motor fuels have continued to rise in price while electricity has remained stable. Another significant factor is the maintenance costs of an ICE vs EV, EVs run significantly more efficiently and their maintenance and repair costs are about 40% lower than comparable ICE vehicles.   

Looking Ahead:

For fleet operators understanding and utilising policies is becoming more vital to their role. As policies don't just encourage EVs, they enable them. As climate policies and strategies are refined, fleet operators are looking for a more transparent and confident way to transition their fleets. This has resulted in a rise of fleet optimisation platforms which provide operators with an analysis of their fleets data and then lays out transparent and practical steps which helps them transition efficiently. These platforms have provided operators with clarity and savings. 

At EVE, we provide operators with simulation and analysis of how to transition to EVs effectively, while aligning with their operational goals and developing policies.