This initiative, already in place in , allows people to lease electric vehicles for affordable monthly rates—ranging from €130 to €215—for EVs priced under €25,000. The program could be replicated across other EU member states to expand access to cleaner transport options.

Funded by EU climate revenues 4j316o

T&E suggests that social leasing programs could be financed through revenues from the EU Emissions Trading System (ETS2)—which will extend to road transport and buildings—and the Social Climate Fund. Their analysis estimates that up to €16 billion could be made available in the five countries studied by 2032 to social leasing.

However, funding constraints are expected in the short term. In 2026, the first year of the Social Climate Fund, only €4 billion will be available, potentially even less. To address this gap, T&E recommends that governments advance ETS2 revenues to 2025 and 2026 by borrowing against future income. This would help launch measures like social leasing before fuel prices start rising due to carbon pricing in 2027.

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Around 20 million low- and middle-income Europeans in rural areas across the five countries rely on combustion vehicles, making them vulnerable to fuel price increases. Marie Chéron, e-mobility expert at T&E, stated:

"To end our dependence on fossil-fuel vehicles and shield households from rising costs, we must the transition to electric vehicles. Social leasing can make clean, affordable mobility a reality for millions who would otherwise be stuck with expensive, polluting cars."

A Broader Mobility Strategy 5h6p40

T&E stresses that social leasing should be part of a broader transport strategy that includes for car-sharing, public transport, and active mobility (like cycling), alongside vehicle scrappage schemes and investments in charging infrastructure.

Social leasing can also stimulate demand in a new EV market segment, reaching up to 12% of the projected EV fleet in 2032. With a six-year lease period, T&E estimates that between 1.5 and 3 million households could benefit, depending on subsidy levels. This would cover up to 27% of rural low- and middle-income households dependent on combustion vehicles.

A European Platform for affordable EVs r2w3s

T&E also calls on the European Commission to create a “European Affordable EV Platform” as part of its guidelines under the Clean Industrial Deal. This platform would act as a one-stop shop for aggregating demand and supply for social leasing programs and facilitating negotiations with car manufacturers.

By prioritizing European-made vehicles, such a platform could both environmental goals and local industry.