€36.5 million electric vehicle subsidy scheme launched

The commencement of the third electric vehicle subsidy scheme boasting a budget of €36.5 million, was announced on Thursday by Transport Minister Alexis Vafeades who emphasised that electric mobility is the ‘smart move’.

The purpose of the scheme is to promote vehicles with zero or low CO2 emissions, as well as alternative modes of transportation, beyond car use. Vafeades highlighted that this initiative aims to mitigate the environmental impact of transportation, particularly by reducing CO2 emissions and air pollutants.

He noted that electric mobility is the ‘smart move’ since it is financially and environmentally friendly.

The scheme concerns grants for the purchase of zero-emission CO2 vehicles (pure electric vehicles), withdrawal of old polluting vehicles in combination with the subsidy of the purchase of low-emission vehicles (with CO2 emissions limit of 50g/km), withdrawal of old polluting vehicles in combination with the provision of bus tickets and payment of a supplementary lump sum amount, subsidy for the purchase of electric bicycles (assisted cycling).

The application process will be conducted exclusively online for all grant categories on the website of the Department of Road Transport from February 17 at 10am until October 11, 2024, or until the exhaustion of grants for each category.

The Department of Road Transport underscored that it reserves the right to terminate the application process for any grant category before the above-mentioned date. In such a case, relevant notification will be issued with a one-month warning.

Both natural and legal entities, including organisations and associations, are eligible to submit applications for grant claims under the schemes. Prospective applicants are encouraged to carefully review the scheme’s guidelines to familiarise themselves with the available grant categories and the criteria necessary for participation.

The plan is funded by the European Union’s Recovery and Resilience Mechanism with an available amount of €36,524,500 and a total budget of €53 million.

Referring to the Grant Categories for private use, the minister said that for the withdrawal and replacement for a new vehicle, Low CO2 emissions (up to 50g/km), the grant amount is €7,500 and the number of grants is 1,228.

New vehicles with zero CO2 emissions get €9,000, with 1,827 grants, while used vehicles with zero CO2 emissions also receive €9,000, with 104 grants. Transfer is prohibited for two years.

For more information on the application process or specific specifications and terms, there is a special reference on www.ev.gov.cy.