Estonian businesses skeptical of EU plan to quickly switch to zero-emissions vehicles
The European Union has proposed requiring companies to use only zero-emission vehicles starting in 2030, including leasing firms and their customers. Estonia has yet to take an official position, but both the Ministry of Climate and car companies are skeptical.
The European Union's initial proposal would cover all types of corporate vehicles, from passenger cars to heavy trucks.
"The overall aim is to cut carbon emissions in the road transport sector and speed up the shift to zero-emission vehicles in company fleets," said Eva Killar, head of the mobility development and investment department at the Ministry of Climate.
Estonia has not yet confirmed its official position on the idea. The ministry plans to discuss it with the government in the first half of September, but remains skeptical.
"Climate ambitions are already quite high and introducing additional obligations prematurely should, in our view, remain up to each member state," Killar said.
Several business leaders have also voiced concern, arguing it is unrealistic to replace vehicle fleets so quickly.
"We understand the need for the green transition and do not deny it, but such a radical change and the forced fast-tracking of these regulations cannot happen at an accelerated pace. We should find a better way to meet the goal, but the current approach — ignoring reality — will have the opposite effect," said Meelis Telliskivi, CEO of the Estonian Car Dealers and Service Companies Association (AMTEL).
For one, zero-emission vehicles are significantly more expensive than conventional ones.
"Costs can increase by 60, 80 or even 100 percent, because some zero-emission vehicles are more expensive than conventional ones. On top of that, the state or infrastructure operators would have to invest in dedicated infrastructure," Telliskivi said.
He also pointed to a major existing problem: the lack of infrastructure.
"Right now, the electric charging network for vans and trucks is in a very poor state. The directive also envisions hydrogen vehicles and possibly other alternatives. But the reality is that not a single hydrogen station has opened in Estonia yet, with just a few in the pipeline," he added.
Killar noted that electric trucks themselves are still rare.
"There's a clear market failure: without users, companies have no commercial incentive to develop them, because the business model doesn't exist. It's extremely expensive, especially if you have to build in a remote area without an existing power connection. Transporting electricity there is costly, and if there are no users, it's unreasonable," she said.
Overall, Estonia has one of the smallest shares of zero-emission vehicles in Europe. Killar sees several reasons for this.
"We have a very dispersed population. Compared to internal combustion vehicles, electric cars are more efficient in urban areas, but once you hit the highway, the efficiency advantage is smaller. Then there are our climatic conditions — driving range in winter is shorter," she said.
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Editor: Marcus Turovski
