Elon Musk Slams Europe for "Subsidizing Pollution" As Study Shows Most of $37.7 Billion Subsidies Are Spent on Petrol and Diesel Engines

Tesla CEO Elon Musk tweeted on Tuesday, Oct. 6, that European countries are "crazy to subsidize pollution," which is bad for people living in dense cities.

"So crazy to subsidize pollution! This is not good for people, especially in dense cities with heavy traffic, where your air intake is jammed up against another car's exhaust pipe," said Musk on his tweet as he shared a CleanTechnica article.

The article was reporting about a study, which was sponsored by environmentalist group Transport & Environment. According to the report, European taxpayers spend about $37.7 billion each year on subsidies for company cars, which mostly have diesel and petrol engines.

The researchers suggest that VAT deductions and write-off for fossil fuel vehicles should end. They also urge businesses to switch to 100% emission-free corporate fleets. One Twitter user replied to Musk and said it that if people live in oil-producing countries, they will likely buy gasoline at low prices. Ankur Debbarman also says: "governments who directly subsidy fossil fuels just pay a part of the end-user price."

He also takes the President of the Dominican Republic as an example as he uses EVs and sets a sample for his citizens to switch engines. "Subsidies, tax benefits shall entice more people to embrace the green revolution more extensively," Debbarman noted.

Another user said that politicians and media should talk and spread more awareness about the economy and security benefits in using better energy policy. Pranay Pathole promotes electric vehicles, particularly Tesla. .

"The govt should provide subsides/tax benefits to the owners/drivers of EVs. This will help in a faster transition to the sustainable and a cleaner environment. Some European countries like Norway are implementing this," Pathole added.

Meanwhile, Twitter user Thompson commended Musk for bringing hope despite the truth of pollution.

Most of $37.7 billion subsidy to company cars goes to fuel combustion vehicles

The study shows that most of the $37.7 billion subsidies are spent on company vehicles using petrol and diesel engines. It shows that 10 largest leasing companies, including Daimler's Athlon and BMW's Alphabet, cause 8% of CO2 emissions in the European Union since these vehicles are driven more than twice as much as possible private cars.

Transport & Environment (T&E) suggested that governments should end the VAT deductions and write-offs for these fuel combustion vehicles as subsidies cost up to $37.7 billion per year.

The report also suggested that companies will save an average of $5,000 per vehicle when they switch to electric cars since it is 9% cheaper to own a large EV than a diesel car. However, researchers found that 96% of the new company car registrations in 2019 were still petrol and diesel engines.

"Electric cars are already the best choice for corporate fleets which clock up high mileage and care about overall costs, not sticker price," said Saul Lopez, T&E e-mobility manager.

The group also urged EU governments to reform the VAT returns, benefit-in-kind taxation as well as depreciation write-offs received by corporate fleets.

"Governments, the EU and cities should pick this low-hanging fruit so that all new company cars are electric by 2025," Lopez added.

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Written by CJ Robles