New Ecological Bonus, it’s not rocket science

We now know the details of the new Environmental Bonus which will come into effect on December 15.

This announcement comes at a time when relations between the European Union and China have reached a new level of tension following Brussels’ announcement last week to launch an investigation into the subsidies granted by China to its automakers. However, the two are in no way directly linked, as France is not targeting the relations between Beijing and its manufacturers but intends to modify the conditions for awarding the generous Environmental Bonus. To do this, France has decided to implement an environmental score calculation for each electric car model.

First and foremost, the aid amount is fixed at 27% of the purchase price including all taxes, potentially increased by the cost of the battery if it is leased. The bonus is capped at €5,000 for private individuals and €3,000 for organizations.

It can be increased by €2,000 when the vehicle is purchased or leased by a individual whose tax income per share is less than or equal to €14,089.

For used vehicles powered by electricity and/or hydrogen, the aid is set at €1,000.

A Bonus for the Top Performers

Starting October 10, 2023, a new criterion will be applied to new electric vehicles. To be eligible for this aid, the vehicle must meet a minimum environmental score. This score considers the entire environmental impact of a vehicle from manufacturing to use on the road.

The methodology chosen to determine which electric vehicles will be eligible for state aid is quite simple and based on a environmental score assigned by ADEME, the Agency for Ecological Transition. According to the agency, electric cars must achieve a minimum score to remain eligible for the ecological bonus. The rating will take into account four main criteria: the materials used to produce the vehicle, the energy consumption related to vehicle assembly, the type of battery on board, and finally the mode of vehicle transportation: CALCULATION FORMULA FOR THE ENVIRONMENTAL SCORE

The Green List

Rest assured, you won’t need to pull out technical sheets and calculators to determine if the car of your dreams qualifies for the Bonus. The list of eligible cars will be published by the government on December 15. Manufacturers will have the right to contest the declassification of their vehicles, which promises some expert debates and a fierce communication war.

inevitably, this list will be quite limited, as, to our knowledge, some of the top 10 best-selling vehicles in France, such as Dacia Spring or the entire MG range, will be excluded. Conversely, the green premium could increase from €7,000 to €8,000 for more modest households. The government will also need to clearly determine its position on Social Leasing, enabling these same households to access a car for less than €100 per month. Again, responses are expected by December.

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