Use the ‘Vehicle fleet electrification’ scenario in ‘Reduce emissions’ to estimate the carbon and financial impact of replacing fossil fuel-powered vehicles with electric vehicles (EVs). This scenario model will empower you to:
Quantify emissions savings from electrification
Understand the financial return on investment in electrification.
Build a credible business case to align sustainability with finance
Prepare for internal conversations with stakeholders like the CFO or operations team
How does the 'Vehicle fleet electrification' scenario work?
This scenario simulates the carbon and financial impact of replacing some or all of your fossil fuel-powered vehicles with electric vehicles (EVs). It uses your actual fuel consumption (uploaded under Mobile combustion) and customisable scenario filters to forecast the transition's climate benefit and financial impact.
'Vehicle fleet electrification' filters
You can adjust the following scenario filters to reflect your organisation’s assumptions and goals. Once filters have been applied, you can save this view for future use.
Input | Description |
Base year | Starting year of the project |
Fuel efficiency (km/L) | Efficiency of your current internal combustion engine vehicles |
EV efficiency (km/kWh) | Average electricity consumption of EVs |
Fuel cost (EUR/L) | Cost of fossil fuel per litre |
Electricity cost (EUR/kWh) | Cost of electricity per kWh |
Distance growth rate (%/year) | Expected annual increase in kilometres driven |
EV share (%) | What share of total distance driven will be covered by electric vehicles |
CAPEX (EUR) | Upfront investment required to switch to EVs |
Revenue difference (EUR/year) | Expected increase or decrease in revenue per year |
OPEX difference (EUR/year) | Annual cost savings or added cost from operations |
WACC | Weighted Average Cost of Capital used to discount future cash flows |
Fuel emission factor | Emission factor used to calculate fuel consumption emissions (a default value is shown until edited) |
Electricity emission factor | Emission factor used to calculate electricity consumption emissions (a default value is shown until edited) |
Project duration (years) | How many years the model should run for |
Include terminal value | Toggle to include/exclude value beyond the project period |
Perpetual growth rate | Growth rate used to calculate Terminal Value |
What insights can I get from 'Vehicle fleet electrification'?
Once you’ve applied your filters, you’ll see forecasted carbon and financial insights based on these changes. Reviewing both perspectives will help you determine whether electrifying your fleet is the right move and give you the data you need to build a compelling business case for stakeholders.
Each insight explained:
Emissions reduction potential (tCO₂e) – Bigger numbers mean greater climate benefit. Check if this aligns with your climate targets.
Change in energy consumption – A drop in fossil fuel use with a rise in electricity use is good. Renewable electricity will maximise the benefit.
Operational savings or increases (OpEx) – Negative values mean savings; positive values mean higher running costs.
Net Present Value (NPV) – Positive NPV = financially worthwhile investment; negative NPV = potential loss over the project’s lifetime.
Cash flow over time – See when cash flow becomes positive. Earlier payback means lower financial risk.
Marginal reduction cost: If positive, your company will have to spend that amount to reduce one tonne of CO2e. If negative, your company will save that amount per tCO2e reduced.