WHILE only 34% of European companies now track their fleet emissions, according to Alphabet – dropping 9.3% in a year – the UK bucks this trend, with 68.4% of companies now monitoring their fleet’s CO₂ emissions; up 1.7% from 2025.
For four years, Alphabet’s European Fleet Emission Monitor (EFEM) has tracked steady progress in fleet sustainability across Europe. But in 2026, that progress stalled – and even reversed. Drawing on insights from over 630 fleet managers across 12 countries, surveyed early this year, the report reveals a striking first: key sustainability metrics have dropped for the first time since EFEM’s inception. This setback isn’t due to a lack of ambition, but rather the impact of unclear regulations, which has led many decision-makers to hit pause rather than push forward.
The 2026 survey adds a crucial new question that gets to the heart of this year’s surprising shift: how is regulatory uncertainty shaping fleet decisions? The picture that emerges is one of a market pulled in three directions. While 27% of the respondents are pushing ahead with electrification and CO₂ reduction, 19% are holding back, waiting for clearer regulations. Meanwhile, 15% are opting for interim solutions like hybrids. This split creates a fragmented market, where the shared goal of sustainable, future-ready fleets is being pursued at very different paces – and with varying degrees of confidence.
Visibility falls as tool awareness lags
Moreover, only one in four fleet managers (although this is one in two (57,9%) in the UK) are aware of digital tools like the Alphabet Carbon Manager that can simplify emissions tracking. This leaves many without a clear way forward. Meanwhile, digital engagement is slipping, with 32% (26.3% 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.
Fleet sustainability slips as polarisation widens
The wider sustainability outlook is also slipping. Only half of European companies now factor sustainability into their fleet planning – the lowest level since the study began and down from 60% in 2023. This trend is also reflected in the UK, with 68.4% of UK companies considering sustainability into their fleet planning, which is down from 76,2% in 2025.
More concerning is a growing divide, with 14% (10.5% in the UK) of fleet managers reporting that sustainability is not important at all, up 2.4 points (5.7 points in the UK) over the past year. Awareness of subsidies for fleet electrification has also dropped sharply, with just 47% (31.6% in the UK, down from 33.3% in 20225) aware of available financial support. And nearly half of the respondents (52.6% in the UK) feel insufficiently informed about e-mobility options. After all, even the best policies fall short if those they aim to support don’t know they exist.
Electrification holds, but unlocking it demands a holistic approach
Despite setbacks across most areas, 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 84.2% of fleet managers reporting that their fleets will be fully electric at some point in the future, up from 71.4% of UK respondents in 2025. This steady commitment stands out amid the broader challenges the report says, yet progress remains hampered by a mix of equally significant hurdles, from operational complexity and budget limits to employee acceptance. With no single barrier taking precedence, it’s clear that overcoming these issues requires a coordinated, systemic approach.
“This year’s survey shows that the will to act remains strong but the confidence to do so 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.”
The full European Fleet Emission Monitor report is published on Alphabet’s website.
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