Support mechanisms for electromobility in Poland – facilities for zero- and low-emission vehicles

1. Introduction

Electromobility is a growing field that has the potential to revolutionise the way we travel.  The numerous benefits it brings are, first and foremost, a reduction in road noise, lower operating costs, increased travel comfort and environmental friendliness. It is worth quoting the figures presented in 2022 by the Council of the European Union, according to which cars and vans are responsible for around 15% of total CO2 emissions [1], the main greenhouse gas in the EU. Growing environmental awareness among the public is making it socially desirable to switch from combustion-powered cars to electric vehicles.

New legislation is encouraging the switch from internal combustion to electric vehicles. The EU Parliament recently voted to ban the registration of new combustion-powered vehicles, to take effect from 2035. This is due to the current EU policy priority of reducing greenhouse gas emissions by 55% by 2030 [2].  However, the planned ban is associated with a number of problems, such as the high price of electric cars, which far exceeds that of combustion vehicles. In addition to this, the low availability of battery charging stations and the limited range of vehicles on a full battery is a considerable obstacle. Some steps are being taken to make electric vehicles more accessible to a wider range of consumers. Therefore, in order to popularise electromobility and reduce the severity of the transition, a number of facilities for electric vehicle users are being introduced, which are worth familiarising yourself with.

2. What is an electric vehicle?

At the outset, it is worth outlining how the concepts of zero- and low-emission vehicles are regulated. They are defined in Article 2(12) of the Act of 11 January 2018 on electromobility and alternative fuels and Article 2(33) of the Act of 20 June 1997. – Road Traffic Law.

According to these acts, a zero-emission vehicle is:

• an electric vehicle as a motor vehicle designed to travel at a speed exceeding 25 km/h using exclusively electrical energy stored by connection to an external power source for propulsion; this term does not include an agricultural tractor. It is considered to be a zero-emission vehicle.

In contrast, vehicles commonly treated as low-emission in Poland include:

• a hybrid vehicle, i.e. a motor vehicle whose design enables it to travel at speeds in excess of 25 km/h; a combustion-electric vehicle in which electrical energy is stored by connection to an external power source;
• a natural gas vehicle, i.e. a motor vehicle designed to travel at a speed exceeding 25 km/h; using compressed natural gas (CNG) or liquefied natural gas (LNG) for propulsion, including those derived from biomethane;
• a hydrogen-powered vehicle, i.e. a motor vehicle designed to travel at a speed in excess of 25 km/h; a rail vehicle or a vessel using electric energy generated from hydrogen in the fuel cells installed therein for propulsion.

3. Selected facilities

The advent of zero- and low-emission vehicles has caused a major revolution in the automotive field. The growing need to support electric car users is driving the introduction of numerous innovative solutions. 

Exemption from tolls for the use of public roads

One of the facilities introduced for users of zero-emission vehicles, closely related to their daily use, is the exemption from selected charges for the use of public roads. In Poland, there is a principle of universal accessibility to public roads. However, certain exceptions to it are allowed, among which is the obligation to pay a fee for the use of public roads in certain situations. As a rule, persons using public roads are obliged to pay fees for car parking: in the paid parking zone and in the downtown paid parking zone. In Article 13 of the Public Roads Act, electric vehicles are listed among a number of entities exempted from the charges. It is worth bearing in mind, however, that this exemption does not extend to paid car parks in areas leased by private companies, unless provided for in the car park regulations. In addition, electric cars are exempt from paying tolls for crossing bridges and tunnels that are longer than 400 metres and located on public roads and ferry crossings on public roads, if such have been established on them. However, the aforementioned tolls are not very widely used; attempts to introduce it were made, for example, in Węgierska Górka in 2016.

When using the exemption, it is important to label electric vehicles to distinguish them from other vehicles.

• According to Article 148b(1) of the Road Traffic Law, “From 1 July 2018 until 31 December 2019, electric and hydrogen-powered vehicles shall be marked with a sticker indicating the type of fuel used for their propulsion placed on the windscreen of the vehicle (…)”. The model of the sticker shall be determined by means of a regulation by the minister in charge of transport in agreement with the minister in charge of information technology, the minister in charge of internal affairs and the Minister of National Defence.
• According to § 27(2) of the Regulation of the Minister of Infrastructure of 31 August 2022 on the registration and marking of vehicles, requirements for registration plates and templates of other documents related to vehicle registration, from 1 January 2020, electric and hydrogen-powered cars are marked by a registration plate with an embossed black registration number on a green background. Owners of vehicles registered before 1 January 2020 can also apply for green number plates, but this is not mandatory.

The exemption from public road user charges does not apply to hydrogen cars or hybrid vehicles.

A similar benefit for electric vehicle users was in place in Oslo by 2020. Numerous incentive instruments were successful, as a record share of 79.3 % of new electric cars among all new cars sold was set in Norway in 2022.

Additional parking spaces

Another functional solution provided for electric and hybrid vehicles are special parking bays designated exclusively for them (art.12b u.d.p.). The important information is that the vehicles can only use them for the duration of charging. Stands are designated by the authority responsible for traffic management on roads, with charging stations available to the public: on public roads, in residential zones and in traffic zones. They can be distinguished from parking bays for other cars by being marked with appropriate road signs.

Stations are designated at least as many as there are charging points in a given location. They may also be designated at locations where there are no public charging stations, in which case they are also available for natural gas vehicles. Such measures are intended to increase the popularity of electric vehicles and promote alternative fuel vehicles.

Parking spaces for electric cars in Poland are marked by an envelope or a designated space with the word “EV”, and may also have a green coloured surface. Please note that unauthorised stopping at these spaces may result in a fine. This applies to users of combustion-powered cars as well as electric or hybrid cars (for which parking spaces are designated). The user of an electric or hybrid car may be fined if they leave their vehicle at a charging station and the vehicle is not connected to the charging station or the charging time has expired. The key point when using this facility is that once the vehicle has been charged, the driver is obliged to repark the vehicle.

Possibility of driving electric vehicles on bus lanes

Another facility for supporters of electromobility is provided for in Article 148a of the Road Traffic Act. According to it, electric vehicles can drive on bus lanes designated by the road manager. Bus lanes are typically reserved for public transport vehicles such as buses or trolleybuses. Making them available for other vehicles helps to reduce congestion and get people to their destinations more quickly. However, there are two caveats associated with the use of these lanes by electric vehicles: firstly, this entitlement is time-limited and will only be in force until 1 January 2026, and the second caveat is that the road manager may make electric vehicle access to the busway dependent on the number of people using the vehicles. Before setting off, it is worth checking whether restrictions have been introduced on the driver’s chosen route. This provision does not apply to hydrogen-powered cars or hybrid vehicles. This is a convenience especially for residents of large cities, who will appreciate being able to bypass heavy traffic and make their journeys more comfortable. Electric vehicle bus lanes were also allowed in the UK until 2019, but this has now been abolished in most counties.

Clean transport zone

An interesting instrument to support the market for zero- and low-emission vehicles is the possibility for the municipal council to establish clean transport zones. Such a solution has been provided for in Article 39 of the Act on Electromobility and Alternative Fuels (hereinafter: the e.p.a. ).
 In Europe, clean transport zones have been used for years as one of the ways to reduce smog levels in cities, improving air quality and the lives of residents. A clean transport zone comprises roads where motor vehicles other than: electric, hydrogen-powered, natural gas-powered, as well as other vehicles listed by the municipal council in the resolution constituting the said zone.  In addition, the law sets out a broad catalogue of exemptions from the entry ban for vehicles belonging to, inter alia, selected bodies for the protection of public security and order.

The designation of a clean transport zone is made by resolution of the municipal council. For a clean transport zone to be established in a given area, a number of conditions must be met. Clean Transport Zones can only operate in municipalities with more than 100,000 inhabitants, for inner city developments or parts of inner city developments. The mere existence of a cluster of intensive housing in a municipality is not sufficient, but a planning document confirming this fact is required. It is also a precondition that the municipality is the road manager.

At this point, it is worth highlighting the roads that are under municipal management.

• According to Article 19(2) of the Public Roads Act, this catalogue primarily includes municipal roads.
• In the case of cities with county rights of way, pursuant to Article 19(5) of the A.D.P., other public roads, i.e. county, provincial and national roads with the exception of motorways, expressways and roads classified as national roads by the minister in charge of transport with a view to ensuring road access to the standard required for TEN-T transport corridors (exemption from Article 5(2a) of the A.D.P.), may also be classified as roads under the management of a municipality.
• The catalogue is completed by roads transferred to the municipality by the manager of another public road by agreement (Article 19(4) u.d.p.).

It should be emphasised that the establishment of a clean transport zone in a municipality that meets all the conditions is optional, so it is not an obligation on the part of the municipal authorities, but merely a power it can exercise.

A clean transport zone can be established either for an unlimited period of time or for a limited period of time, but not less than 5 years. An important possibility is to allow restricted vehicles to enter the zone between 9am and 5pm, subject to payment of a fee by users, but this is only permitted for a period of no more than 3 years from the date the zone is established.

The aforementioned fee for entering the clean transport zone, pursuant to Article 39(6) of the e.e.p.a., constitutes revenue for the municipality and is used for the purposes of the zone itself or other aspects of transport sector support. The charge may not exceed PLN 2.50 per hour in the case of a one-off charge and PLN 500 for one month in the case of a subscription charge.
 Vehicles authorised to enter the clean transport zone free of charge shall be identified on the basis of a sticker on the windscreen or appropriate number plates. The model of the sticker being the basis for entry into the clean transport zone is set out in the Regulation of the Minister of Climate and Environment of 31 March 2022 on the model sticker for vehicles authorised to enter the clean transport zone).

There are now more than 320 clean transport zones across Europe. According to the report ‘Quantifying the impact of LEZs and ZEZs: Evidence Review‘, produced in 2022 for the Clean Cities Campaign, there has been an average 20% reduction in nitrogen dioxide emissions in clean transport zones.  In central London, the percentage was 44%, in Paris 24% and in Brussels up to 33%[3].

Although the Clean Transport Zone has so far had negligible popularity in Poland, changes are coming. Following previous unsuccessful initiatives, the Clean Transport Zone is set to take effect from 1 July 2024 in Krakow.[4]

Subsidies for electric cars

An important initiative to support supporters of electromobility from an economic position is the ‘My Electric Car’ subsidy programme, created in 2021. Under the programme, the purchase of zero-emission vehicles is subsidised. There is also the possibility of subsidising the initial payment and transfer fee agreed in leasing contracts.

If you wish to benefit from a subsidy or a refund of an expense already incurred for an electric car, the application must be submitted directly to the National Fund for Environmental Protection and Water Management. The entire subsidy process is carried out online. In the case of a leasing subsidy, the application must be submitted to the leasing company of your choice.

The maximum amount of the surcharge for individuals is PLN 18,750, while the price of the vehicle cannot exceed PLN 225,000. The subsidy limit does not apply to holders of the Large Family Card, in whose case the maximum amount can be as much as 27,000. The condition, however, is that beneficiaries make a declaration that they will not sell the car for 24 months from the date of obtaining the subsidy.

In the case of subsidy amounts for entrepreneurs – for the purchase of M1 category vehicles [5], the subsidy is up to a maximum of PLN 18,750 or PLN 27,000 for average annual mileage exceeding 15,000 km and when the vehicle price does not exceed PLN 225,000. With regard to the purchase of N1 category vehicles [6], the subsidy is up to 20% of the expenditure incurred in connection with the project, but not more than PLN 50,000, or 30% of the expenditure when the average annual mileage exceeds 20,000 km, but the amount of the subsidy in this case may not exceed PLN 70,000. A subsidy of up to 30% of eligible costs applies to the purchase of L1e-L7e category vehicles, but cannot exceed PLN 4,000.

Excise duty exemption

Electric vehicles have so far been associated with considerable expense. Their prices are significantly higher than those of combustion-powered cars. In order to reduce the costs incurred when purchasing an electric vehicle, the legislator decided to implement an exemption from excise duty (Article 109a of the Excise Duty Act).

The exemption from excise duty applies to users of hydrogen or electrically powered passenger cars. The owner of the vehicle interested in benefiting from the exemption should apply to the competent head of the tax office for a certificate stating the exemption from excise duty. The only condition for the issue of the certificate is that the person concerned presents documentation proving that the vehicle to which the exemption applies is an electric or hydrogen-powered vehicle.

In addition, the seller of an electric passenger car or a hydrogen-powered car is obliged to hand over a certificate stating the exemption from excise duty to the purchaser if the vehicle has not previously been registered on the national territory. As far as the sale of new cars is concerned, it is possible that the seller to specialised car dealerships with long-term contracts with these dealerships only provides the dealerships with copies of the certificate stating the exemption from excise duty.

4. Summary

Electromobility is a relatively new area of development in Poland. It has been gaining popularity in recent years, but is still not as developed as in other European countries. There are some problems associated with the development of electromobility, such as the lack of appropriate infrastructure or the high costs associated with the purchase of vehicles. An important step towards the development of electromobility was the enactment of the Act on Electromobility and Alternative Fuels in 2018. New solutions are still being implemented in Poland to increase the popularity of electric cars and cars powered by alternative fuels. Their users are gradually increasing each year and support instruments are being improved. According to the Electromobility Counter report, at the end of February this year, as many as 70 263 electric passenger and commercial vehicles were registered in Poland. In the first two months of this year alone, the number of these vehicles increased by 5 056, or 56%, compared to the same period last year [7]. Electric vehicles are an increasingly common sight on the streets and have also become a major focus of the automotive industry. Although such modes of transport still raise many concerns among their potential users, thanks to support mechanisms, the prospects for the development of this mode of transport are increasingly promising.

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Magdalena Paź, 3rd student at the Faculty of Law and Administration of the Jagiellonian University in Kraków

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[1] www.europarl.europa.eu/news/pl/headlines/society/20180305STO99003/redukcja-emisji-gazow-cieplarnianych-cele-i-dzialania-ue

[2] www.consilium.europa.eu/en/infographics/fit-for-55-effort-sharing-regulation

[3] Williamson, T., Marner, B. Beattie, C., (2022). Quantifying the impact of LEZs and ZEZs: Evidence Review for the Clean Cities Campaign 10-12009C-10 [online]. [Accessed 19.03.2023]. Available from: cleancitiescampaign.org/wp-content/uploads/2022/10/12009C_Quantifying-the-impact-of-low-and-zeroemission-zones-Evidence-Review_final.pdf

[4] www.krakow.pl/aktualnosci

[5] M1 category vehicles are vehicles for the carriage of persons with no more than eight seats in addition to the driver’s seat (Annex 2 to the Road Traffic Law of 20 June 1997).

[6] Category N1 vehicles are vehicles designed and constructed for the carriage of cargo and having a maximum gross weight not exceeding 3.5 t (Annex No. 2 to the Road Traffic Law of 20 June 1997).

[7] www.pzpm.org.pl/pl/Rynek-motoryzacyjny/Licznik-elektromobilnosci/Luty-2023

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