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The Finnish government is preparing a €20 million scrappage incentive programme aimed at reducing vehicle emissions and boosting new car sales. Under the proposal, private individuals who scrap a car over ten years old and replace it with a low-emission model could receive between €2,000 and €2,500.
The draft plan is under consultation until early August and would run from October 2025 through the end of 2027.
To qualify, both the owner of the old car and the buyer of the new one must be the same person. Eligible replacement vehicles must either be zero-emission or emit less than 140 grams of carbon dioxide per kilometre. The highest bonuses are expected to apply to electric vehicles.
Finland currently scraps 60,000 to 80,000 cars per year through its recycling system. The new incentive is intended to speed up this process by targeting the oldest and most polluting cars on the road. The average age of passenger cars in Finland reached 14.1 years in 2024, with registrations of new cars declining steadily since 2018.
The Ministry of Transport and Communications estimates that the programme could lead to the removal and replacement of roughly 9,100 cars over two years.
Past scrappage schemes in Finland have operated in 2015, 2018, 2020 and 2021. Previous versions allowed the bonus to be used for public transport tickets or electric bicycles. This time, the scheme focuses solely on new low-emission cars.
A 2021 government survey showed that 72 percent of scrappage recipients used the funds to purchase an electric-assisted bicycle. The programme also led to reduced personal car use and fewer cars per household.
The current proposal excludes public transport or bike-related options, despite the ministry acknowledging that such additions could increase the environmental benefits.
Officials also considered offering the scrappage payment without requiring the purchase of a new car, which would encourage the removal of old vehicles from circulation. However, this would not stimulate new car sales, which is a key objective of the campaign.
The Taxpayers’ Association of Finland has submitted feedback, calling the bonus generous for internal combustion engine replacements. It proposed expanding the scheme to include subsidies for installing home charging points or buying seasonal public transport passes.
The ministry said the limited scope reflects time constraints in preparing the legislation and the government’s priority to support the struggling car market.
HT
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Source: www.helsinkitimes.fi
