Too big to ignore: Uncovering car leasing companies’ inconsistent climate strategies

Reports

2 July 2025

Rental dominates the distribution and use of new cars in the EU, accounting for more than half of all new vehicles and aiming for almost 70% by 2030. Seven key players control 61% of the rental market and 31% of new registrations. Large fleet operators strongly influence the used car market. However, leasing companies largely escape the EU’s climate regulatory framework, with no binding requirements on the emissions of their financed fleets, unlike manufacturers.

Key findings:

  • 12 out of 20 leasing companies publish no public information specifically about their leasing activities.
  • Only 8 companies have climate targets, but these are fragmented, short-term, poorly detailed.
  • No leasing company has committed to stop financing new ICE vehicles in Europe, even after 2035, when the EU plans to ban their sale.

Reclaim Finance and T&E call on the European Commission, Members of the European Parliament and Member States to include binding measures in the upcoming EU Fleets law, expected by the end of 2025:

  • Mandate transparency on leasing fleet data: vehicle types, emissions, and fleet composition—broken down by country and year;
  • Set regulatory targets for the electrification of leasing fleets, including a phase-out of new ICE vehicle financing, latest by 2030.