Transforming Catalonia’s Mobility System for Net Zero

Annex F. Subsidies for small vehicles and micromobility

Subsidies’ eligibility criteria affect purchase choices and the policy’s cost-effectiveness. Subsidies granting higher or equal support (in absolute terms or as a percentage of total vehicle cost) to the purchase of big vehicles risks leading to what the International Transport Forum (ITF) (2023[37]) describes as a like-for-like replacement, where Internal combustion engine vehicles (ICEV) are swapped with electric vehicles (EV) without altering their size, usage patterns, or occupancy. An alternative approach illustrated by the ITF, the broader uptake electrification pathway, focuses on reducing car dependency, space needs, and traffic volume through the adoption of smaller vehicles, improved vehicle capacity utilization, and increased use of alternative modes of transport (ITF, 2023[37]).

Figure A F.1 illustrates some of the vehicle types fostered by the Broader Uptake pathway. These include electric micromobility (lightweight, often single-person transportation modes such as e-scooters, e-bikes, electric skateboards), Small Electric Vehicles (SEVs, smaller vehicles than traditional cars such as electric quadricycles, electric motorcycles, electric cargo bikes, and microcars like the Electric Smart), and small battery-electric vehicles (small electric cars like the Smart EQ FourTwo) for both passenger and freight transport.

Figure A F.1. Examples of small vehicles included in the ITF broader uptake scenario

Source: Extracted from (ITF, 2023[37]).

The broader uptake pathway offers several advantages: it would require one-third less street space, one-third less battery capacity (and therefore fewer battery materials), it would consume 16% less electricity and would need 33% fewer public charging points compared to the like-for-like pathway (ITF, 2023[37]). In terms of safety impacts, the broader uptake would reduce exposure of pedestrians and micromobility users to road risk by 38% and 63% respectively, thanks to the reduced presence of large vehicles and lower travel speeds.

While Catalonia may not always have full flexibility to re-orient European funds, there could be opportunities to refine the eligibility criteria for EV subsidies in line with the ITF Broader Uptake scenario. The access and amount of subsidies could vary according to the vehicle size, real-world vehicle performance, vehicle use, and vehicle type.

For example, access could be restricted based on vehicle size. Studies indicate that small Battery Electric Vehicles (BEVs) would allow most people meet their daily travel needs, despite users perceptions (or range anxiety, as referred to by Hao et al (2020[38]). For example, the Nissan Leaf (a small BEV) could meet the needs for 87% of daily car trips in the US, where distances travelled are longer than in Europe (Needell et al., 2016[39]). Research by Ellingsen, Singh and Strømman (2016, p. 4[40]) find that life-cycle GHG-emissions of heaviest EV class are 65% higher compared to the lightest EV class.

Furthermore, eligibility could be adjusted to account for real-world vehicle performance. For example, Plug-in Hybrid Electric Vehicles (PHEV), eligible to the subsidy and accounting for almost half of the resources distributed by the MOVES III programme, emit significantly higher CO₂ levels than advertised. Recent studies reveal discrepancies between official emission reduction potential of PHEVs and real-world performance tests. They find that PHEV emissions could be between 28% to 89% higher than advertised, even under optimal conditions (Transport & Environment, 2020[41]; European Commission, 2024[42]).

Subsidies for EVs could also vary depending on the use given to the vehicle and lead to an increased cost-effectiveness of subsidies. For example, in Ireland, taxis and other small public service vehicles – both more frequently used than private vehicles - can receive grants of up to 20 000 EUR (25 000 EUR for wheelchair-accessible vehicles) (Irish National Transport Authority, 2024[43]), compared to a maximum subsidy of 3,500 EUR for the purchase of EVs for private use (SEAI, 2024[44]).

Expanding the scope of eligible vehicles to include micromobility options is another potential improvement. The promotion of a more diverse variety of electric vehicles could bring numerous environmental and well-being objectives (ITF, 2023[37]). The perception of a just transition for policies such as low-emission zones (see Chapter 4) could be improved, as households unable to afford large electric vehicles may be able to afford, for example, electric micromobility, and access these areas.