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Regulatory uncertainty stalls Europe's fleet sustainability

For the first time in four years, key sustainability metrics have moved backwards. Based on 630+ fleet managers across 12 European countries

60%

- of fleet managers say regulatory uncertainty is reshaping their 2026 to 2030 fleet decisions.

34%

- of European companies currently monitor their fleet CO2 emissions. The lowest level since 2023.

25%

- of fleet managers are aware of digital tools like Alphabet Carbon Manager.

61%

- of European fleet professionals plan full electrification or have already switched.

Sustainability ambition intact. Momentum stalling

Four years of steady progress on fleet sustainability. Then, in 2026, a reversal. Only 34% of European fleets still monitor CO2, down 9.3 points in a single year and the lowest level since EFEM began. This is not a loss of ambition. It is the effect of unclear regulations, which has pushed many decision-makers to pause while they wait for clarity.

Uncertainty is splitting fleet strategies

Six in 10 European fleet managers now say regulatory uncertainty is reshaping their 2026 to 2030 decisions. The market is pulling in three directions. 27% are accelerating electrification. 19% are pausing for clearer rules. 15% are taking interim steps like hybrids. A shared goal, three very different paces. This is the story of 2026 in one chart.

Out of sight, out of mind: monitoring falls as tool awareness lags

Only 34% of European companies still track their fleet emissions. That’s a 9.3-point drop in one year and the lowest level since the study began. However, the UK bucks this trend, with 68% of companies now monitoring their fleet’s CO₂ emissions; up 2% from 2025.

 

Moreover, only one in four fleet managers (one in two in the UK) are aware of digital tools like Alphabet Carbon Manager that can simplify emissions tracking. This leaves many without a clear way forward. One quiet bright spot: AI integration in fleet operations now sits at 21%, up from 15% in 2024.

Meanwhile, digital engagement is slipping, with 32% (26% in the UK) unable to identify any digitalisation challenges at all. Yet, there is a silver lining: AI adoption is quietly gaining ground, with 11% now reporting some level of integration, up from 7% in 2025.

Electrification confidence holds

Despite the setbacks elsewhere, 61% of European fleet professionals expect their fleets to be fully electric or have already made the switch. The UK is certainly helping to lead the charge in this area, with four in five (85%) fleet managers reporting that their fleets will be fully electric at some point in the future, up from three in four (71%) UK respondents in 2025

 

That commitment is the steady anchor of the 2026 study. Progress is not simple. 90% of fleet managers see at least one barrier to electrification, with range anxiety (37%) and charging infrastructure (32%) still leading the list. No single blocker dominates, so progress needs a joined-up response.

Jesper Lyndberg, CEO of Alphabet International, comments:

 

"Uncertainty has become the defining condition of fleet management in 2026”

 

"This year's survey shows that the will to act remains strong, but the confidence to act has weakened. Regulatory uncertainty is now the biggest factor influencing fleet decisions across Europe, driving responses that range from bold acceleration to cautious hesitation. The organisations that will succeed are those that stop waiting for clarity and start building the right foundations today, with accurate data, effective tools, and solid structures. True clarity doesn't come from outside; it's something you build yourself."

22 pages. 12 countries. Four years of trend data.

Key findings

  • More data, less direction: While more companies are tracking emissions, only 27% can accurately quantify their CO₂ output – showing that data alone isn't enough. Without digital tools and structure, information risks becoming noise.
  • Digital progress still stalling: Despite rising pressure, 42% still rely on fuel-based calculations and 26% use Excel – outdated methods that hinder effective fleet management. Just 7% have begun integrating AI.
  • Knowledge gaps persist – and hold fleets back: Nearly half of fleet managers still feel underinformed about electrification, infrastructure, and available support – a barrier to progress despite high awareness.
  • Regulation isn’t enough on its own: The CSRD has had minimal influence on fleet planning so far, with more than half of companies unaffected and one third unsure of its relevance.
  • Sustainability remains a structural challenge: One in three companies now have a dedicated sustainability department – an encouraging step, but overall planning remains fragmented across much of Europe.