Italy has approved a €600 million ($698 million) subsidy program, funded by EU recovery money, to drive electric vehicle adoption. The plan offers up to €10,000 for individuals and €20,000 for small businesses, covering up to 30% of the purchase price of new electric cars or commercial vehicles. Beneficiaries must scrap a Euro 5 or older combustion-engine vehicle from 2015 or earlier. Aimed at large urban areas, the initiative targets air pollution and public health while tackling Italy’s low EV uptake—just 6% of new cars sold in June, compared to over 15% across the EU.

By tying subsidies to the removal of older polluting cars, the program reduces emissions while making EVs more accessible. Support for small businesses also advances cleaner logistics and delivery operations, often overlooked in the green transition. The plan aligns with EU goals to phase out fossil fuel vehicles, cutting carbon emissions, improving urban air quality, and boosting investment in EV manufacturing, batteries, and charging infrastructure.

With lower operating costs, long-term savings, and protection from fuel price volatility, EVs offer both environmental and economic benefits. Italy’s bold subsidy scheme is more than a financial incentive—it is a strategic investment in cleaner mobility, healthier cities, and a sustainable future.