Grant for the purchase of zero-emission vehicles will be open from 27 February

The Environmental Investment Centre (EIC) will open the call for grant applications for the purchase of zero-emission vehicles on 27 February. The grant can be requested for the purchase of all-electric vehicles and electric cargo bikes purchased as of 6 February 2023. The amount of support per car is EUR 4000 and EUR 1000 per cargo bike.

According to Tanel Oppi, Head of the Department of Grants and Services of the EIC, the grant will help bring more environmentally friendly vehicles onto Estonian roads: ‘By using zero-emission vehicles, we are helping to reduce air pollutant emissions and lower the CO2 level of the Estonian transport sector. In this way, we are contributing to the improvement of the overall environmental situation.’

‘In addition to electric and hydrogen cars, we are now also able to support the purchase of electric cargo bikes, which, when travelling short distances, are a viable alternative to travelling by car,’ adds Oppi.

Lauri-Indrek Tummeleht, Project Coordinator at the EIC, emphasises that there will be no round of the quickest to apply this time: ‘Unlike the previous call for applications, it is possible to request a grant for the purchase of a vehicle after purchasing the vehicle. The grant can be applied for a vehicle that has been purchased and registered as of 6 February 2023.'

‘We are looking for individuals and companies who perform many trips on a daily basis and for whom an electric vehicle offers an affordable and comfortable driving solution. Sustainable hydrogen cars are well suited for green innovators, and cargo bikes allow not only everyday movement but also the driving of family members or transportation of, for example, grocery store shopping bags or smaller pieces of furniture,’ adds Tummeleht.

Main Terms and Conditions

• We support the purchase of new all-electric M1 and N1 category cars (passenger cars and light vans) and cargo bikes with an additional electric powertrain. Vehicles can also be equipped with a hydrogen fuel cell. Cars can also be purchased using leasing.

• Applicants may be legal persons registered in Estonia and natural persons with an Estonian personal identification code. Car dealers and state and local government agencies cannot apply for grants for cars. Legal persons in public law and constitutional institutions governed by public law, as well as agencies administered by the authorities of a rural municipality or city, can also apply for support for cars.

• The grant amount per car is EUR 4000 for an entrepreneur and EUR 5000 for a private person. The grant for a cargo bike is 50% of the purchase price, but not more than EUR 1000 for a legal entity and EUR 1250 for a private person. The EIC withholds income tax from the grant paid to private persons.

• The price of a supported passenger car can be up to EUR 60,000 and the price of a light van up to EUR 80,000, excluding VAT. There is no price limit for hydrogen cars.

• An application for the new vehicle grant can be submitted within two months after the purchase of the vehicle and the registration of the car in the register of the Estonian Transport Administration. Purchasing and registration must not have taken place prior to the entry into force of the regulation of the measure (06.02.23).

• The electric vehicle must be in use for at least four years, move around mainly in Estonia, and use renewable energy to charge the car.

• A cargo bike must have a box or stand built by the manufacturer as part of the bicycle frame, designed to transport at least 40 kg of items or people, the cargo bike is not wider than 900 mm and is equipped with an odometer.

• We will support the purchase of a maximum of 15 cars and 15 cargo bikes per entrepreneur-applicant (together with associated entrepreneurs). A natural person can apply for a grant for the purchase of one car and an electric cargo bike.

• In order to receive the grant, the car must be purchased from a car dealer approved by the Estonian Transport Administration or the Estonian Vehicle Dealers and Services Association (AMTEL), or from a vehicle manufacturer within a country that is part of the European Economic Area or Switzerland, its official representative or a dealer recognised by the manufacturer or official representative. A cargo bike must be purchased from an entrepreneur engaged in the sale of bicycles.

• When buying more than three cars, entrepreneurs must prove their economic performance.

• The application must be accompanied by the purchase documents of the vehicle.

The measure has a total volume of EUR 8.5 million and is divided between private and legal persons, as well as cars and cargo bikes as follows:

• the grant for the purchase of category M1 and N1 vehicles by natural persons is EUR 3,875,000
• the grant for the purchase of category M1 and N1 vehicles by legal persons is EUR 3,875,000
• the grant for the purchase of a cargo bike by natural persons is EUR 375,000
• the grant for the purchase of a cargo bike by legal persons is EUR 375,000

Applications may be submitted in the E-toetus webpage from 27 February. The EIC shall process applications for a maximum of 70 days and applications shall be processed in the order in which they are received. More detailed information on the terms and conditions of the call for applications can be found on the EIC’s homepage.

The grant is provided using the proceeds from the trading scheme for greenhouse gas emission allowances, with the support measure having been developed by the Ministry of the Environment.