Belgium moves beyond the EC’s green automotive expectations and ambitions.

This report not only captures the current state of sustainable mobility across Europe but also casts a forward-looking perspective on the sector's trajectory. The paper serves as a clarion call for stakeholders across the spectrum to unite in their efforts towards realising a sustainable, efficient, and inclusive mobility ecosystem. Let "State of Play: Sustainable Automobility" be a beacon that guides us towards a cleaner, greener, and more sustainable future.
 

Read the full report here 
 

Find out more about sustainable automobility in Belgium

Policy Review

Belgium’s Recovery and Resilience Plan  

Belgium's approach to sustainable mobility is highlighted in its Recovery and Resilience Plan, which allocates € 1.2 billion to sustainable mobility. This funding will enhance railway infrastructure, finance green public buses, support the deployment of electric charging stations, develop urban public transport, and create or refurbish cycling paths. A key reform in the plan aims to promote electric road transport by restricting the preferential tax treatment for company cars exclusively to zero-emission vehicles by the year 2026.
 

Electric Vehicle Tax Benefits and Subsidies

As of October 2023, Flanders is offering a subsidy of up to € 5,000 on the purchase of a new electric vehicle while the other regions have yet to follow. Furthermore, individuals who purchase an electric vehicle can benefit from reduced taxes including a significantly lower value-added tax for electricity consumption. For companies, it is possible to apply the maximum deductibility of 100 % of expenses for passenger cars (M1 category) with ≤ 50g CO2/km and battery capacity ≥ 0.5kWh per 100kg of vehicle weight. Companies also can apply at a federal level for a 35 % deduction of investment in the purchase of battery electric vehicle and FCEV commercial vehicles (categories N1-N3) as well as for the electric vehicle charging infrastructure.
 

National Energy and Climate Plan 2021-2030

The Belgian government has published a national energy and climate plan for 2021-2030, which focuses on reducing emissions, improving energy efficiency, and fostering innovation that directly contributes to the development of sustainable mobility solutions. The sales of passenger vehicles with internal combustion engines will be phased out by 2035 and several large cities in Belgium including Brussels, Antwerp, and Ghent are applying increasingly stringent entry restrictions on ICE vehicles. As Belgium is part of the EU, The EU Clean Vehicles Directive requires Member States to purchase between 24–45% alternatively fuelled buses between August 2021 and December 2025.

Technological Advancements

Belgium is investing in research and development related to battery technology. Belgian-based Umicore Rechargeable Battery Materials manufactures active cathode materials to enable the transition to electromobility. In 2023, Umicore and US start-up Blue Current, a leading manufacturer of silicon elastic composite solid-state batteries, agreed to strengthen their joint venture collaboration on the development of solid-state battery technology. Belgium-based Avesta Battery and Energy Engineering announced it will build a € 1.4 billion electric car battery cell factory in Galati, Romania to supply batteries mainly for the automotive industry – Renault-Dacia and Ford – and for the stationary storage market. 
Volvo’s new battery assembly operation in Ghent opened in May 2022 to supply batteries for the automaker’s full-electric heavy commercial vehicles. By localising battery production, Volvo reduces the environmental impact of manufacturing and transporting these components.
 

Infrastructure Development

Belgium has been actively investing in its rail infrastructure development, aiming to enhance connectivity, sustainability, and efficiency. Belgium is set to receive up to € 120 million in European funding for six transport infrastructure projects. Over € 100 million of this funding is earmarked for investment in Belgium’s railways and waterways. The Belgian federal government has signed 10-year contracts with SNCB and Infrabel for the period from 2023 to 2032. These contracts outline business plans and investment programs to ensure efficient rail operations and infrastructure maintenance. 
The European Investment Bank has partnered with the Brussels-Capital Region to provide €475 million in financing.

EV Infrastructure

The addition of 13,000 new public charging stations in 2022 brings the total number of public charging stations across Belgium to more than 27,000. According to the Industry Association Electric Vehicle Belgium, there will be nearly 2 million electric electric vehicles in Belgium by 2030, and the country will require 20,000 to 30,000 new charging points every year. At the federal level, Belgium’s government recognises the need to increase the number of charging points, both at home and at work, to support the electrification of the fleet.
 

Market Trends and Consumer Behavior

In 2022, passenger electric vehicle sales in Belgium increased by 39.7% year-over-year to 98,356 units, representing an EV penetration rate of 26.9% of total new passenger vehicle sales. According to Fitch Ratings, Belgium's EV sales will grow 18% to 116,000 units in 2023, and its electric vehicle penetration rate will increase to 29.3%. 

On the commercial vehicle side, at least 60% of new company cars registered in 2022 were electric vehicles. The combination of government-driven fleet electrification and the electrification of vehicles in logistics networks will drive strong commercial electric vehicle sales in the next decade. Given this, electric commercial vehicle sales in Belgium will grow 50% year-over-year to 2,900 units in 2023.

Public Transportation Systems

Currently, Belgium's buses are majority diesel powered, followed by hybrid electric with 11.8%, electric buses represent only 0.9% of the fleet. However, under EIB financing of Belgium's public transportation, there is a clear trend in Belgium to promote sustainable public transport.
 

Environmental Impact and Emissions

Since 2005, Belgium has reduced emissions by 17.2%, which is slightly below the EU-wide reduction of 19% during the same period. Notably, emissions from energy industries have decreased by almost 30% between 2005 and 2019. The waste management sector achieved the biggest percentage reduction in emissions since 2005 (55%).

Economic and Social Implications

From 2011 to 2021 the Belgian government spent approx. 2.8% of its GDP on the transport sector. Considering the ambitious goals set for a sustainable transportation system and mobility, the central government in the coming years will have to increase the share of expenditure on transport. Belgium's commitment to sustainable e-mobility is evident through its investments in green public buses and electric charging stations, aiming to enhance sustainable mobility and reduce urban emissions. The country's focus on integrating social aspects into e-mobility research highlights the importance of public perception and acceptance in the adoption of electric vehicles, essential for achieving decarbonisation goals.
 

Best Practices and Case Studies

The MaaS ecosystem initiative aims to bolster the Brussels Capital Region's mobility offerings by creating an integrated system that competes with private car usage. However, implementing such a system presents governance challenges, particularly in coordinating regulatory frameworks and fostering cooperation among different administrative jurisdictions. With nearly half of the employees in the Brussels Capital Region commuting from neighbouring provinces and a significant portion working outside the region, effective collaboration and alignment of regulatory approaches become imperative for a successful MaaS ecosystem. Its primary objective is to map out the desired MaaS ecosystem and identify key competencies, entities, and institutional barriers involved.

Future Perspectives and Emerging Trends

Belgium is in the process of reforming and creating growth in both electric vehicle and public transport sectors. Having a strong internal automotive industry, paired with extensive financial support from European funds and long-term policies created by the government it is encouraging that Belgium is on a path to transform their mobility and automative sectors to meet the needs of the future.

International Comparisons and Collaborations

AWV’s (Belgium) partnership with Rijkswaterstaat (Netherlands) focuses on exchanging information and ensuring timely communication, preparing balanced and objective programs, effectively managing available knowledge and executing high-quality, innovative work. In 2006, the AWV and Rijkswaterstaat signed a Memorandum of Agreement.