Govt moves to fix €2500 scrapping premium to buy zero-emission car

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Govt moves to fix €2500 scrapping premium to buy zero-emission car

The government prepared a draft proposal for a new act on scrapping premiums for passenger cars for the years 2026–2027.

The Ministry of Transport and Communications sent out the draft proposal for comments and the deadline for submitting comments is 5 August 2025, said the Ministry in a press release on Friday.

Under the proposal, the state would offer a scrapping premium of EUR 2,500 for the purchase of a new zero-emission car powered by electricity or hydrogen, and EUR 2,000 for a new car powered by another fuel type, provided its CO2 emissions do not exceed 140 g/km.

To qualify for the premium, one passenger car that is at least 10 years old must be scrapped for each new car purchased.

According to the proposal, the owner or holder of both the scrapped and newly purchased car must be the same person.

In addition, the scrapped car must have been in use on the road and in the buyer’s ownership or primary use for at least 12 months prior to scrapping.

The plan is for the proposed act to enter into force on 1 January 2026.

Once the act has entered into force, the scrapping premium could be applied retroactively for eligible purchases made from 1 October 2025 onwards, under the conditions laid down in the act.

The scrapping premium scheme would run until 31 December 2027 or until the allocated budget appropriation is exhausted.

According to the draft proposal, EUR 20 million in state funding would be earmarked for the scheme over the two-year period.

The Finnish Transport and Communications Agency- Traficom would process the applications and grant the scrapping premiums.

Despite previous scrapping schemes and other measures to encourage fleet renewal, the average age of Finland’s passenger cars has continued to rise steadily since 2007.

In 2024, the average age of passenger cars on the road reached 13.6 years, the highest ever recorded in Finland.

The scrapping premium scheme will help cut transport emissions, improve road safety and modernise the vehicle fleet in a technology-neutral way.

This proposal concerns the 2026 budget proposal and is intended for consideration in connection with it.

  •  Scrapping premium
  •  Zero-emission car
  •  Purchase

Source: www.dailyfinland.fi

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