Background information

The objective of this plan, endowed with €250 million, is to stimulate demand, activate production in Spain and promote the replacement of older and polluting vehicles. Moreover, the plan also aims at stimulating production for an important manufacturing sector Spain in order to cushion the impact of the COVID-19 crisis.

The objective of this program is to replace older vehicles with models cleaner and safer, incorporating environmental criteria. Taking an approach of technological neutrality, this program encourages the substitution of polluting vehicles in circulation by new vehicles with lower emissions and of all technologies currently available: electric, hybrid, hydrogen, combustion, LPG and natural gas. With a broad focus, the program supports the purchase of vehicles belonging to the most relevant categories, from passenger cars and commercial vehicles light, to heavy commercial vehicles and buses.

Content of measure

The aid of the "Renove 2020" plan will be granted directly to the selling price and can range from €300 to €4,000 depending on the type of vehicle and the situation of the beneficiary. An additional €500 may be available in the case of scrapping a vehicle over twenty years old, for beneficiaries with reduced mobility or those who belong to households with a monthly income of less than €1,500.

Vehicle purchases made from 16 June, 2020 are eligible for aid under the "Renove 2020" plan. The program will end on 31 December, 2020 or until the credit enabled for this purpose is exhausted.

Use of measure

It is estimated that this plan will have an economic impact for Spain of €1,104 million throughout the entire value chain and associated services, and that it will contribute to the maintenance of 7,400 jobs in the sector.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Applies to all citizens

Actors and funding

Actors	Funding
National government Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

No involvement was reported.

Views and reactions

No views of social partners have been reported.

Sectors and occupations

This case is not occupation-specific.

Sources

• 03 July 2020: Royal Decree 25/2020 of urgent measures to support economic reactivation and employment (www.boe.es)