Money for bikes in 2024: New schemes continue to flourish, but political instability takes its toll

While some countries, like Spain, have announced new purchasing schemes and tax incentives, others, like France, have terminated theirs due to political turmoil and budget cuts.

Purchase subsidies for bicycles have proven to be a very effective and cost-efficient way of increasing access to cycling, especially for electric and cargo bicycles. While these types of bikes have higher initial purchase costs, they also have a high potential to replace car trips, for example, for daily commuting (in the case of e-bikes) or for goods transport (in the case of cargo bikes). Additionally, they make cycling more inclusive by opening it up to groups who did not cycle before, like older generations or families having to transport their children.

During the last few years, more and more national, regional, and local governments have introduced purchase subsidies or tax incentives, such as for cycling to work. ECF is tracking those schemes in its Money for Bikes tool*. This article highlights some major developments in the field during the past year.

Starting with the good news, the Spanish Prime Minister Pedro Sánchez himself announced in September 2024 that his government would introduce a €20 million purchase subsidy scheme for electric bikes for both individuals and companies. An additional €20 million will be invested in public bike-sharing schemes to expand them and make them cheaper. The aim is “to increase the modal share of cycling in daily commuting and to have more bikes in more cities, for more people,” said Sánchez. On top of that, more and more Spanish cities and regions provide purchase incentives, for example the Madrid Region with a targeted subsidy for elderly citizens and small and medium enterprises. Interestingly, the Spanish national government and the government of the Madrid region are formed by opposing political parties, showing that support for cycling does not have to depend on political colour.

On the other side of the Pyrenees, France is unfortunately choosing the opposite path. A decree issued at the end of November 2024 in the wake of political turmoil and hasty budget cuts confirms that all state subsidies for the purchase of bicycles will be withdrawn in February 2025, even though they had previously been guaranteed until 2027. A broad alliance of associations, including ECF member FUB, has warned of the negative consequences of this decision for the cycle sector and users. FUB’s Director Thibault Quéré stated: “This is a blow to a dynamic that was well underway and had found its audience. All the more so as the subsidies targeted the most vulnerable households and the range of bicycles was adapted and advantageous for people with disabilities.”

Poland, another major EU Member State, had also planned to introduce a comprehensive national purchase support scheme for electric bicycles from 2025 to 2029 for a total budget of PLN 300 million (ca. €70 million). However, these plans were provisionally cancelled in the autumn when the European Investment Bank did not approve funding through the Modernisation Fund for investments in energy efficiency. Hopefully, this decision will be reversed or other funding sources will be made available to reap the potential of electric cycling also for Poland.

For all EU Member States, the drafting of national plans under the EU Social Climate Fund during the first half of 2025 will also be a great opportunity to reserve funding for bicycle purchase or leasing schemes targeted towards vulnerable transport users.

* The Money for Bikes Tracker is temporarily unavailable as we work on improving our website. It will be accessible again soon.