The Flemish government is about to abolish the premium for the purchase of electric cars on November 22.
This decision comes unexpectedly quickly, after it was previously decided to gradually reduce the financial support for electric vehicles. The government has now drawn up an emergency decree that is expected to be approved today in the Flemish Parliament. If this happens, electric vehicles purchased after 22 November will no longer be eligible for the premium.
Initially, it was announced that a premium would also be paid to buyers of electric cars in 2025 and 2026. However, due to concerns about the affordability of this scheme, it was decided in February to end the premium earlier. During the recent negotiations for the new Flemish government, it was decided to end the subsidy even sooner, namely before the end of 2024.
stimulus
Until now, Flemish consumers could receive up to 5.000 euros when purchasing a new electric car. For a second-hand electric car, the premium was 3.000 euros. The premium conditions stipulated that this compensation was available for new electric cars with a purchase price of up to 40.000 euros and second-hand models with an original value of up to 60.000 euros. People who buy an electric car before 23 November can still submit an application until the end of this year, on 31 December.
The premium for electric cars was originally introduced in February by former Flemish Minister of Mobility Lydia Peeters (Open VLD). The scheme was seen as an essential incentive to promote the sale of electric vehicles and reduce the ecological footprint in Flanders. This initiative proved to be a success, as demand for electric cars increased significantly. At the beginning of October, more new electric vehicles had already been registered this year than in the whole of 2023, indicating a clear effect of the subsidy on sales figures.
For the time being, it appears that buyers who still opt for electric driving after November 22 will have to do so without direct financial support from the government.
However, there were early signs that the budget for the premium would not be sufficient to meet the growing demand. The Flemish Council of State already expressed concerns about the lack of financial coverage for the program at the beginning of this year. According to a recent update, 11.590 premium applications have been submitted, of which 9.736 for new cars and 1.854 for second-hand vehicles. So far, the government has already paid out around 40 million euros in subsidies, and it is expected that the total amount could eventually rise to 70 million euros. This rapid depletion of the budget has probably forced the Flemish government to phase out the scheme prematurely.
early end
Due to the early end of the subsidy, future buyers of electric cars may have to rely on other forms of support or compensation to make the switch to electric driving. The Flemish government is aware of the challenges of the energy transition, but in this case seems to be making pragmatic choices in light of the budgetary constraints.
The decision to end the subsidy earlier also comes in light of broader European ambitions to reduce CO₂ emissions and ban the sale of vehicles with combustion engines by 2035. Despite the fact that this Flemish subsidy has proven to be an important incentive for the purchase of electric cars, the government is questioning whether it is sustainable in the long term to continue investing significant amounts in purchase premiums.
In the coming months, the Flemish government will continue to work on its mobility and climate objectives and look at other ways to promote electric driving, possibly by improving infrastructure for electric vehicles, such as expanding the number of charging stations in Flanders.
