· Amy Cancryn · eu-policy · 5 min read
The Climate Hunger Games: Why Spain's EV Policies Are Stacked Against Average Citizens
Spain's flawed EV incentive program, MOVES III, has left thousands of buyers in limbo. This article examines how bureaucratic inefficiencies, income inequality, and political missteps are creating a two-tier mobility system—and what Spain can learn from Norway and Montana to fix it.
The European Union demands its citizens’ transition to electric vehicles by 2035. Yet as Spain’s recent suspension of the MOVES III incentive program shows, governments seem determined to make this transition as difficult as possible. On January 22, 2025, thousands of Spanish EV buyers were left in limbo when Congress rejected extending the program. This was because of political opposition from PP, Junts, and Vox leaving those who bought Electric Vehicle in January, left without benefits.
This is a pattern. While Brussels mandates the end of internal combustion engines, it simultaneously imposes tariffs on affordable Chinese EVs, citing unfair subsidies from the Chinese Government. While Spain promises up to €7,000 in incentives, it buries them under byzantine regional bureaucracies and post-purchase reimbursement schemes that put EVs out of reach for average citizens.
The numbers tell the story: As our “Green Divide” analysis revealed, the majority of Europeans earn between €25,000—€35,000 annually. Yet the average EV costs €40,000 or more. This is while European automakers have increased their profits per vehicle from €1,920 to €8,940 between 2019 and 2022, focusing on luxury models while discontinuing affordable options.
The message is clear: participate in the green transition, but don’t expect it to be easy---or affordable. Welcome to the Climate Hunger Games, where the rules are made up and your income determines whether you win or lose.
The MOVES III program perfectly exemplifies this systemic dysfunction. On paper, it offered generous incentives---up to €7,000 for battery electric vehicles with scrappage of an old car, or €5,500 without. In reality, it created a labyrinth of obstacles:
First, buyers had to front the full cost of the vehicle, then wait months for reimbursement through their regional government. Dealerships took advantage of this by advertising the price of EVs with the full moves discount applied. However, when they arrived, they realized the car actually cost 7,000 euros more. For a family with Spain’s median disposable income of apx €25,000, that’s like asking them to hold their breath underwater while filling out paperwork.
Second, the program fragmented implementation across 17 autonomous communities, each with its own bureaucratic process. Some regions ran out of funds while others had surplus. The result? Your ability to go electric depended on your postal code.
Third, buyers had to navigate tax implications, as the incentives counted as taxable income. Imagine getting a €7,000 rebate only to learn you’ll owe taxes on it---a detail often discovered too late.
Contrast this with successful models elsewhere. Montana’s Electric Vehicle incentive program allows dealers to apply the $7,500 credit directly at purchase---no waiting, no regional variations, no surprise tax bills. Norway eliminated VAT and import taxes on EVs entirely, while building a robust charging infrastructure.
Spain’s automaker associations ANFAC and Faconauto are now pushing for a replacement program. The issue isn’t just about money---it’s about accessibility. What good is a €7,000 incentive if the system to claim it is designed like an obstacle course?
The implications extend far beyond Spain’s EV market. As our Green Divide analysis showed, this pattern of misaligned incentives is creating fertile ground for political extremism across Europe. When citizens perceive climate policies as elitist impositions that burden working people while protecting industry profits, they become increasingly receptive to anti-climate rhetoric. Parties like Vox have already capitalized on this sentiment, using opposition to green policies as a rallying cry. If the EU and national governments fail to make the green transition inclusive, they risk fueling the very political instability they say they aim to prevent.
Consider the timing: Spain’s EV market share sits at just 5.6%, well below the European average of 13.6%. The EU’s 2035 ICE (Internal Combustion Engine i.e diesel or gas) ban is only a decade away. Without accessible pathways to EV ownership, we’re heading toward a two-tier mobility system: electric vehicles for the wealthy, and aging, increasingly expensive-to-maintain combustion engines for everyone else.
What needs to change? The government needs to embrace three core principles:
- Point-of-Sale Simplicity: Make incentives immediate, like Montana’s dealer-integrated system. No more complex reimbursement schemes or regional variations. When a qualified buyer walks into a dealership, they should pay the post-incentive price, period.
- Income-Scaled Support: Norway’s success comes from making EVs financially attractive across income levels. Spain needs targeted support for middle and low-income buyers, including enhanced incentives for households below median income.
- Infrastructure First: A €7,000 incentive means little without accessible charging. Spain needs to front-load investment in charging infrastructure, particularly in multi-unit dwellings and lower-income neighborhoods.
The suspension of MOVES III creates an opportunity to reset. Spain can either design another bureaucratic maze that preserves industry profits while frustrating consumers, or it can build a program that actually matches the urgency of its climate goals.
The question is whether Spain’s government---and the EU---will finally align their implementation with their ambitions, or if they’ll continue treating climate action like a game show where the odds are stacked against the average citizen.
The coming decade will define whether Europe’s climate goals represent genuine ambition or empty promises. Right now, it looks more like a rigged game than a true transition. While Norway proves that rapid, equitable EV adoption is possible, and U.S. states like Montana demonstrate how to make incentives work for average citizens, Spain and the EU continue to craft policies that seem designed to fail.
The suspension of MOVES III should serve as a wake-up call. Climate action cannot succeed if it’s treated as a luxury good or a bureaucratic obstacle course. As Europe barrels toward its 2035 ICE ban, it’s time to decide: Will we create a sustainable future accessible to all, or will we continue playing the Climate Hunger Games, where only the wealthy get to be winners, and losing the trust of the very citizens needed to make it happen?
The clock is ticking. The rules of the game need to change---and fast.
References:
https://elbil.no/english/norwegian-ev-policy/
https://www.climatexchange.org.uk/wp-content/uploads/2023/09/eu_case_studies_norway_transport.pdf
https://nexisneo.com/income-inequality-ev-adoption
https://nexisneo.com/the-green-divide-part-2
https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6462
