Estonian Environment Minister Madis Kallas stated that although support for the purchase of electric cars is a step in the right direction, it will not make citizens rush to buy an electric car, ERR News writes.
On the 21st of December, the Ministry of the Environment of Estonia published a draft law, which provides that companies or individuals will be able to receive financial support to purchase an electric car. However, the environment minister said that he does not expect a rapid increase in the number of electric cars on the streets:
«I admit that such steps will not achieve a revolution in EV adoption in Estonia. They are still too expensive to reach the masses, including people with a lower level of income, at current support measures.»
The Ministry has determined support in the amount of 5,000 euros for individuals and 4,000 companies, and the price of the vehicle must not exceed 60,000 euros (80,000 euros for commercial vehicles). Thus, for example, a Porsche Taycan that costs more than 73 thousand euros does not qualify for support.
Kallas also agreed that it is unlikely that the population will abandon diesel cars in favor of electric cars. There are several reasons for this, first of all, is the significant price difference between them. Another aspect is the distance that can be traveled on a single charge, which is especially important in the Estonian climate and even more so for residents of rural areas.
Also speaking of wealthier people, Kallas does not see that subsidies could be an incentive to buy an electric car. He points out that although 5,000 euros is a large enough amount, compared to the full price of the car, it is not so much to become the decisive argument. Rather, people who see an electric car as the right choice will buy it regardless of the support mechanisms.
Asked why such subsidies are needed at all, Kallas said that every small action can help to improve and protect the environment as a whole. The support payment will also be available to businesses and could have a greater impact.
Speaking of rural areas, Kallas said fuel consumption and long distances remain a problem there, with little or no access to public transport or carpooling options.
Read also: Estonia promotes use of electric cars and zero emissions policy