Incentives for Scrapping Polluting Vehicles to Improve Air Quality

€2,000 of financial incentives for those who hand over old vehicles

What does it consist of?

With a budget of €3 million, up to 1,500 vehicles over seven years old will be scrapped. The aim is to move towards cleaner mobility through direct aid to locals and businesses, with a fixed grant for each scrapped vehicle.

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Data

PROJECT TITLE IN THE CALL
Promotion of vehicle scrappage for decarbonisation (pilot test)
LOCATION
Mallorca, Minorca, Ibiza, Formentera
Entity submitting the PROJECT
Conselleria d'Empresa Ocupació i Energia
Entity that executes the project
Direcció General d'Economia Circular Transició energètica i Canvi Climàtic
Project code
ITS2425-068
Total project amount
3.000.000 €
ITS granted amount
2.000.000 €
Executed amount
1.664.000 €
Call year
2024-2025
Execution status
In execution
Purpose
Environment
Budget execution
Executed: 83.2%
Last data request
07.07.2026

The project

As part of its efforts to curb climate change and reduce emissions in road transport, the government has launched a new grant scheme aimed at scrapping old combustion vehicles. The initiative is part of a broader decarbonisation strategy and responds to the objectives set by the 2021–2030 National Integrated Energy and Climate Plan.

The funding call provides for incentives of €2,000 per scrapped vehicle, with a maximum of one vehicle per applicant. Individuals residing in the Balearic Islands and private entities carrying out business activities there are eligible, provided that the vehicle is at least seven years old, has been registered in the applicant's name for at least one year, and road tax payments are up to date.

It is estimated that up to 1,500 M1 and N1 vehicles could be taken off the road, which would mean avoiding around 2,706 tonnes of CO₂ emissions per year. The process will work on a first-come, first-serve basis, i.e. grants will be awarded as applications are registered. The call will be published in the second half of 2025 and the deadline will be in December 2026.

From an environmental point of view, the impact will be significant. Reducing the fleet of the most polluting vehicles will help to improve air quality and reduce fossil fuel consumption. Moreover, the measure is in line with the goals set by regional law on climate change, which establishes a minimum penetration of 35% for renewables and a 40% reduction in emissions by 2030.