The European Commission is gathering feedback from member states on a possible initiative that would require companies to switch to zero-emission vehicles. The measure is intended to reduce fossil fuel consumption and imports, increase the share of zero-emission vehicles on the secondhand market and make them more affordable for the public.

Cutting carbon dioxide emissions from road transport would also make it more likely that the EU could meet its 2030 and 2050 climate targets.

According to a draft position submitted to the government, Estonia has finalized its stance on the matter. While the country supports promoting the use of alternative fuels in transport and developing infrastructure to cut vehicle emissions, it does not back an EU-wide requirement obligating companies to purchase only zero-emission vehicles.

The draft notes that to achieve climate goals, Estonia has prepared a Climate-Resilient Economy Act, which sets out targets intended to provide clarity on reaching climate neutrality by 2050.

The draft climate law also sets targets for the transport sector: reducing emissions by 24 percent by 2030, 37 percent by 2035 and 55 percent by 2040 compared to 1990 levels.

"In summary, ambitious implementation norms have already been introduced at the single market level for the transport sector, which guide and compel companies to reduce emissions. Meeting them requires significant effort and cooperation between the public and private sectors," the draft states.

Estonia, it adds, has an action plan to achieve the climate law's targets in a way that ensures reasonable market conditions, sector resilience and competitiveness. These, in turn, support broader goals of economic growth, household welfare and environmental protection.

"Therefore, and taking into account security, geopolitical and broader economic challenges facing Estonia, it would not be reasonable to impose additional climate targets and burdens on the sector, including higher administrative costs," the document says.

Estonia's position is that member states must retain enough flexibility to design and implement the measures necessary for their own transition to climate neutrality.

"At the same time, we believe member states should have the discretion to impose an obligation on companies to purchase zero-emission vehicles at the national level. If needed, such a requirement could also apply to vehicles from other member states when they provide services on its territory," the explanatory memorandum states.

According to Estonia, if the European Commission's proposed measures were implemented, they would significantly increase companies' administrative burden, forcing them to replace their fleets faster and make additional investments. The measures would also affect the state budget.

Another concern raised in Estonia's draft position is that, while the initiative is meant to boost the competitiveness of European carmakers, a zero-emission purchase requirement could instead expand the market share of vehicles from third countries, particularly China.

Currently, only about 6 percent of the nearly 290 million vehicles on EU roads are zero-emission. Around 60 percent of registered vehicles in the bloc belong to companies.

Under an EU regulation, greenhouse gas emissions from transport, agriculture, waste management, buildings, industrial processes and product use must be cut by 24 percent by 2030 compared to 2005 levels.

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