Scrapping premium for electric bikes – What has changed?
In Finland, you could use the car scrappage bonus to purchase an electric bike until 2021. The goal was to support people to choose lower-emission alternatives, and many electric bikes were purchased with the help of this bonus. Although in Finland you can't use the car scrappage bonus to buy an electric bike right now, the topic is constantly being discussed.
Scrapping bonus and electric bike — What did you get in Finland before?
The scrapping bonus has been introduced in Finland on several occasions as a means of recycling cars and renewing the vehicle fleet. In the campaign organised in 2020–2021, the bonus was offered widely. If a person scrapped their old car, the bonus could be applied for a new low-emission car, an electric bike or a public transport ticket.
In this case, an electric bike was a viable option for utilizing the bonus. The bonus was awarded for the purchase of an electric bike and it was possible to receive support of up to 1,000 euros. Several applicants took advantage of this opportunity, and it turned out that support for electric bikes constituted a significant part of the campaign's overall spending.
A total of 6,500 cars were scrapped during the campaign. During the scrapping bonus campaign, as much as 71% of the subsidies were directed towards the purchase of electric bicycles. A follow-up study showed that bicycles came into active use and the number of cars in households decreased: in many families, an electric-assisted bicycle replaced one of the previous cars.
The current government has stated that the goal is no longer just climate goals, but primarily to renew the car fleet and promote the sale of new cars. Therefore, the scrapping bonus can no longer be used for electric bicycles. The car scrapping bonus could therefore be used for electric bicycles or public transport. This made it possible for many to replace driving with lighter and more environmentally friendly transport.
Scrapping bonus reforms and change in scope
The government's decision on a new scrapping bonus means that electric bikes can no longer be chosen as an option.
The latest law , which has been approved and will enter into force on 1 January 2026, allows a scrappage bonus only for the purchase of a new passenger car. The amount of the bonus is set at 2,500 euros if the new car is zero-emission (for example, an electric or hydrogen car) and 2,000 euros if the new car's CO₂ emissions are below 140 g/km.
What changed and why was support for electric bikes removed?
The removed change probably reflects the government's priorities and efforts to steer motoring towards lower-emission, but still car-based transport. The new program specifically emphasizes the purchase of a new car, and in particular increasing the share of electric and hydrogen cars.
The fact that the electric bike was removed as an option also means that the environmental benefits of the campaign, such as reducing emissions, reducing car use and easing urban traffic, will change. The goal is primarily to renew the car fleet, not to change mobility habits towards light traffic.
Impacts from the perspective of cycling and low-emission mobility
During the previous campaign, the majority of scrapping bonuses were used on electric bikes, so it will inevitably affect many people's decision to purchase an electric bike.
The government's decision to abolish the tax benefit for company bicycles has also had a major impact on the bicycle trade. The tax benefit will be abolished at the beginning of 2026. The abolition of the tax benefit caused the prices of electric bicycles to drop significantly. The government's proposal was published just in time for the peak season for bicycle sales, when shops had plenty of stock waiting for the main sales season of spring and summer 2025.
Although this tax benefit is not the same as the scrappage premium, its end has had an impact on bicycle sales. At the same time, when the scrappage premium is re-directed to several vehicles and no longer supports electric cycling, cycling's position as a target for subsidies is further weakened.
This is especially relevant in cities, where an electric bike or regular bike can replace a car on many everyday trips and offer an affordable, emission-free and often fast way to get around.
Summary: The electric bike scrapping fee is history, at least for now.
Finland has therefore used a scrapping bonus, in which compensation could also be used to purchase an electric bike or a public transport ticket. This model promoted the transition of many people to non-car-based mobility and supported sustainable mobility.
However, in the new campaign for 2025–2026, this possibility has been removed: the scrapping bonus will now only apply to the purchase of a new car, preferably an electric or hydrogen car. However, according to the Automotive Information Center, the September 2024 VAT increase led to an exceptionally sharp decline in new car registrations, so it will be interesting to see how the scrapping bonus affects new car sales.
However, electric cycling brings enormous advantages and benefits to life, even though you can no longer use the scrapping bonus for it.
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