RAI Association: “BPM increase makes clean, fuel-efficient cars unaffordable”

Sharp goals, sharp choices

On Monday, March 13, the report “Sharp Targets, Sharp Choices” was released, proposing a large number of measures for further CO2 reduction. Some of the proposed measures involve making mobility more sustainable.

RAI Association supports meeting the European climate goals and therefore endorses the need for the central government to now come up with proposals for long-term policies towards 2030, including for the mobility sector. This provides certainty to consumers and business owners. However, how the “financial pain” – caused by the proposed measures – is distributed is cause for great concern.

Basic need

“In addition to food, housing, education and health care, easily accessible and affordable mobility is a basic need for everyone,” stated Huub Dubbelman, section chairman for Passenger Cars and Light Commercial Vehicles of RAI Association. “If the administration chooses to fine combustion engine cars while not encouraging electric vehicles, driving a car will become unaffordable for many people.”

The so-called “IBO climate report” was prepared by a committee headed by Laura van Geest, chairman of the board of the Financial Markets Authority. After an initial analysis of the report’s plans, RAI Association has the following concerns:

100% increase in bpm is counterproductive

The proposed 100% increase in the bpm is counterproductive. Higher purchase tax (bpm) makes clean and fuel-efficient cars unaffordable. As a result, motorists will continue to drive their current cars longer, and there is an added incentive to import used, more polluting cars from abroad – as Van Geest himself concludes.

Incentive options

It is a missed opportunity that incentive options, such as reduced addition or purchase subsidies for zero-emission cars, were not calculated by the Van Geest committee. In addition to standardization and pricing, stimulation is also necessary to achieve a rapid, successful transition to zero-emission cars. After all, only then will “affordable zero-emission driving” come within reach of both business and private drivers and create broader social support.

Pay by use

In a variant of the plans, the Van Geest committee also devotes attention to differentiation in the rate of “Pay by Use” according to the car’s CO2  emissions. Research firm Revnext has previously calculated that a tariff with such an environmental component has significantly more effect on mileage and CO2 emissions, than a system with a flat tariff. It is now important that the cabinet also opt for a CO2  component when introducing “Pay by Use.

Important preconditions

The committee also lists several important preconditions for the transition in the mobility sector to succeed. RAI Association explicitly underlines two preconditions.

Charging infrastructure continues to lag behind

The Van Geest committee’s analysis shows that the charging infrastructure cannot keep up with the pace of electric vehicle growth. The charging and refueling infrastructure (electricity as well as hydrogen) should never be a limiting factor for the growth of sustainable mobility in the Netherlands. The public, semi-public and private charging and refueling infrastructure must therefore be put in order for rapid growth of sustainable mobility in the coming years. In order not to hinder the transition to zero-emission transport, the construction of charging and refueling infrastructure must be placed high on the political agenda. RAI Association is therefore calling on the government to quickly step up its efforts to do so in consultation with the industry.

Unreasonable

It is good that Van Geest is also putting the loss of car tax revenue due to greening on the political agenda. It is unreasonable to compensate for this loss entirely within the automobile domain and, moreover, it inhibits greening. Therefore, RAI Association advocates that this loss of revenue should come from general funds. Otherwise, the mobility industry itself will pay for the thirsty costs of the successful steps the industry has already taken on the road to sustainability. For example, by 2022, electric cars comprised 26% of all new sales.