Incentive Tax on Fleet Greening

Source: International Energy Agency
Last updated: 23 June 2025

To promote the decarbonization of vehicle fleets, France has implemented a green fleet tax (Taxe Incitative pour le Verdissement des Flottes), updated under the PLF 2025. This tax targets companies with large fleets, incentivizing the replacement of polluting vehicles by zero- and low-emission alternatives. The tax imposes higher rates on fleets that do not meet progressive environmental performance thresholds, based on CO₂ emissions and vehicle types. The evolving framework encourages companies to integrate more electric and hybrid vehicles to reduce their tax liability, supporting national climate goals.

Want to know more about this policy ? Learn more