France's vehicle scrappage program and its impact on VIO

We look at the scrappage incentives and climate law in France, the country’s designated end-of-life (EOL) vehicles and analyze the impact on the vehicles-in-operation (VIO).

The French government is determined to speed up the improvement of air quality and decarbonize urban mobility. France was one of the first to adopt the target of phasing out the sale of new light-duty vehicles that use fossil fuels by 2040, and the country wants to accelerate the conversion of the car population to electric, hydrogen, and hybrid with an aim to achieve carbon neutrality by 2050. In 2021, the French parliament adopted a law that includes measures such as ending sales of new passenger cars emitting more than 95 grams of CO2 per km (according to NEDC or New European Driving Cycle) by 2030.