- General conditions of the aids and applications
- The Basque Government has presented the aid programme "Less Emissions Vehicles" within the Industrial Defence Group, in response to the challenges facing the Basque automotive sector in the current global context of tariff war.
- With an initial investment of EUR 5 million, this program not only accelerates the decarbonisation of road transport, but also strengthens a key industry for the Basque Country, generating demand for the purchase of new vehicles.
- The "Less Emissions Vehicles" programme will provide support of up to EUR 3,500 per vehicle replacement, ensuring that the modernisation of the Basque motor vehicle fleet boosts both the sustainability and competitiveness of the sector.
- The new aid programme puts Euskadi at the forefront of Europe, with one of the EU’s most comprehensive and advanced programmes, and represents a determined commitment to technological neutrality towards decarbonisation of road transport and complementary to the existing commitment to electric cars through the MOVES programme.
- The initial phase of the programme is expected to replace 2,000 passenger cars and vans with more efficient and less polluting ones (CO2 emissions below 125 g/km and 150 g/km respectively). In total, emissions of more than 24,000 tonnes of CO2 equivalent to those produced by 16,000 households will be avoided.
The Basque Government has presented, within the framework of the Industrial Defence Group, a new aid programme for the purchase of "Less Emissions Vehicles", which will be channelled through the Basque Energy Agency. This working group, led by the Minister of Industry, Energy Transition and Sustainability, Mikel Jauregi, brings together the main public institutions of the country, and a representation of industry and the economic fabric, with industrial clusters, business organizations, chambers of commerce and representative companies. Its mission is to provide the Basque industry with real-time information to deal with the tariff war, as well as to present measures to boost industrial activity and mitigate the possible damage that the new trade measures of the United States Government may cause.
As the counselor stressed, "we must be able to help citizens access new vehicles that lead to lower emissions, while supporting the automotive sector". He has also appealed to the role that government leaders must take, "we must lead and we must now. We have to grab the steering wheel hard and get around the curves that come for the sector."
"So far, the European wager has been the electric vehicle, but its deployment is not working as expected. People are betting on a used car and not on an electric car. And a mobile park with old cars does not contribute to decarbonisation," added Jauregi.
Less Emissions Vehicles Programme
Among these measures, this new "Less Emissions Vehicles" programme has been presented today, with the aim of advancing the smart decarbonisation of the transport sector by effectively replacing passenger cars and vans with other less emission vehicles. The programme will grant aid of up to €3,500 to replace the current vehicle with a new vehicle with emissions of less than 125 g/km for passenger cars and 150 g/km for vans, making it compulsory to land the old vehicle. It is estimated that the average reduction in CO2 emissions by car replacement (tourism) will be over 30%.
This new aid programme will have an initial (expandable) envelope of EUR 5 million of own funds intended to support vehicles purchased from 1 April 2025. In this way, aid to reduce road transport emissions is extended, complementing supply beyond the electric vehicle. The "Less Emissions Vehicles" aid programme places the Basque Country at the forefront of Europe, with one of the most comprehensive and advanced programmes in the EU.
The Basque Government continues to opt for electrification as the main way of decarbonising road transport, but with this new aid it takes a step towards accompanying families who are not yet determined to make the leap to the electric vehicle. The level of support from this programme, which is complementary, will be lower (€3,500) compared to the MOVES programmes supporting the purchase of electric vehicles (€7,000 if the amounts of the last MOVES are maintained), and will also be managed through the EVE.
The Basque Government is in continuous contact with the Government of the State with regard to the reactivation of the MOVES programme which, as has been repeatedly stated by various representatives of the State Government, is intended to relaunch with reference to 1 January 2025. The Basque Government considers it necessary, especially in the present circumstances, to reactivate the programme and has transferred it to the Spanish Government.
Smart decarbonisation
According to the latest Greenhouse Gas Emissions Inventory, produced annually by the Basque Government through IHOBE, freight and passenger transport accounts for about 35% of all GHG emissions in the Basque Country, which are mainly due to the use of fossil fuels in road transport. That is why the "Less Emissions Vehicles" programme aims to have an impact on the reduction of road transport emissions.
The aim of this new aid programme is twofold, both decarbonisation and industrial support. Coupled with the reduction of emissions, through technologically more advanced vehicles and more efficient engines, it is also intended to be a new experience that can be shared with the rest of Europe, giving a boost to the industrial sector as important at European and Basque level as is the automotive sector (with about 40,000 quality jobs in the Basque Country).
In this way, the Basque Government intends to bring its experience to both the Spanish Government and the European Commission to implement new measures to boost decarbonisation, while providing support to the automotive sector.
Response to social reality
In recent years there has been an ageing of the fleet of vehicles currently in circulation, which in the Basque Country is 14.5 years, slightly above the State average (14.2 years), when the average was 12 years in 2019. Given these figures, the Basque Government notes with concern the trend in recent years of second-hand vehicle acquisition. In 2024, three second-hand cars were purchased for each new car sold in the Basque Country, which does not contribute to the effective decarbonisation of road transport.
Replacement of around 2,000 passenger cars and vans by other lower-emission vehicles (passenger cars or vans with CO2 emissions of less than 125 g/km, and 150 g/km respectively) is foreseen at this initial stage.
The replacement of these vehicles will avoid emissions close to 24,000 tonnes of CO2 in 10 years of their service life, which is equivalent to as many carbon dioxide emissions as those produced by 16,000 Basque households. This is equivalent to the purification effect of 115,000 trees per year.
The "Less Emissions Vehicles" programme also has a dual social dimension: making it easier for a wider sector of Basque society to buy a new vehicle and to access the low-emission areas of the city centre.
Added to this is the improvement in road safety by incorporating new vehicles with more technologically advanced driving support systems into the vehicle fleet that make them safer.
In short, with this new aid programme, the Basque Government, through the EVE, is committed to smart decarbonisation that combines industrial growth, a commitment to reducing emissions and accompanying society, combining the objectives of support for industry, decarbonisation and social justice.
Access to the aid programme
This subsidy may be granted to passenger cars or vans with these characteristics: electric pure and plug-in hybrids, extended autonomy, LPG (liquefied petroleum gases), natural gas, petrol or diesel, with CO2 emissions of less than 125 g/km for cars, and 150 g/km for vans purchased from 1 April 2025.
In any case, the attachment of the old vehicle will be obligatory to make the replacement effective and to qualify for the aid of up to €3,500 per vehicle. The maximum price for the new vehicle, in general, may not exceed € 40,000 for passenger cars and € 75,000 for hydrogen passenger cars.
The aid shall apply to purchases made from 1 April, provided that the purchase is made and paid in full from that date. The aid may be requested on the website of the Basque Energy Agency.
Main characteristics of the aid
Eligible actions:
Purchase of light, new or demonstration vehicles belonging to the categories M1 (passenger cars) and N1 (vans):
- with CO2 emissions of less than 125 g/km for category M1 vehicles
- with CO2 emissions of less than 150 g/km for category N1 vehicles
Demonstration vehicles are vehicles up to nine months old, counted from their first registration until the date of the purchase invoice.
Subsidy vehicles may be pure electric, plug-in hybrids, extended range, powered by liquefied petroleum gas (LPG), natural gas, petrol or gas oil.
Some of the eligible vehicles of 125 g/km would be: Volkswagen Golf, Seat León, Audi A3, Peugeot 508. There are over 900 models/vehicle versions (M1) to choose from.
These cars could access all the low-emission areas of the Basque Country.
The attachment of a vehicle complying with the following conditions is COMPULSORY:
- The aid applicant must own the vehicle.
- The braking of the vehicle must take place from 1 April 2025.
- It must be category M1 or N1.
- The Mechanical Traction Vehicle Tax, duly paid, at least since 2024 in a municipality of the CAE; and finally,
- The vehicle must comply with one of the following two conditions:
- have an age of 20 years or more (counted from its first registration until the date of removal); or
- Issue more than 175 g CO2/km for category M1 vehicles and more than 200 g CO2/km for category N1 vehicles.
Amount of aid
- EUR 3,500 per vehicle with a limit of not more than 20% of the eligible cost of the vehicle purchased.
Maximum price of the vehicle purchased
- The price of the vehicle purchased for M1 shall not exceed EUR 40,000 (VAT and NOT included registration taxes).
- For hydrogen M1 vehicles, the maximum price is EUR 75,000 (VAT and NOT included registration taxes).
- For N1 vehicles, no maximum price applies.
Limits per beneficiary
- Not more than one vehicle for each natural person and not more than three vehicles for each legal person applying for the aid.
Compatibility with other grants, aid, revenue or resources
- Compatible provided that, taken as a whole, they represent an aid rate equal to or less than 70% of the eligible cost.
Deadline for submission of applications
- Date of purchase of the vehicle shall be from 1 April, i.e. any vehicle purchased from 1 April shall enter the aid programme.
- The programme for receiving applications will be opened on 1 April.
- Programme pazos: from the opening (1 April) to 15 September 2025 or the budgetary exhaustion of the call. Applications shall be examined and processed in accordance with the order in which they are submitted, but shall be resolved to the extent and in the order in which they are properly formalised and completed.
Administrative processing
- The aid shall be processed in a single phase after the purchase of the vehicle has been completed.
- The vehicle shall be purchased, billed and paid in full as from 1 April. No payment signs or advances shall be allowed.
