Written evidence submitted by the Department for Transport (EVP0120)

Decarbonisation of cars and vans: 2030 and 2035 ambitions

1.      Ending the sale of new, conventional petrol and diesel cars and vans by 2030 is a key part of helping the UK meet its 2050 climate change goals. The GHG emission savings are equivalent to over 4 million fewer cars on the road each year out to 2050[1]. The transition to zero emission cars and vans will reduce harmful emissions that contribute to climate change, improve air quality in our towns and cities and support economic growth. It will put us at the forefront of the electric vehicle revolution with vehicles, and their underlying technology such as batteries, built here in the UK. Phasing out the sale of new petrol and diesel cars and vans by 2030 will put the UK on course to be the fastest G7 country to decarbonise these vehicles.

2.      As part of the Prime Minister’s Ten Point Plan[2] for a green industrial revolution, the Government announced it was going further and faster to decarbonise transport by phasing out the sale of new petrol and diesel cars and vans by 2030, and, from 2035, all new cars and vans must be zero emissions at the tailpipe. Between 2030 and 2035, any new cars and vans sold that emit from the tailpipe must have significant zero emission capability (which would include some plug in and full hybrids), to be defined by consultation in 2021.  The Ten Point Plan also committed to consulting on a phase out date for heavy goods vehicles.

3.      These ambitions are supported by an accompanying package of £2.8 billion, with £1.3 billion to accelerate the roll out of charging infrastructure and £582 million for plug in vehicle grants. Up to a further £1 billion will support UK’s world-leading automotive manufacturing sector. This will help to secure the transformation of the automotive sector at pace by developing and embedding the next generation of cutting-edge automotive technologies in the UK.

4.      We have made real progress to date. In 2020 the UK was the third largest market for Ultra-Low Emission Vehicles (ULEVs) in Europe[3]. Nearly 11% of all new cars sold in the UK in 2020 were ultra-low emission vehicles (6.6% were battery electric vehicles and 4.1% were plug in hybrid electric vehicles) up from just over 3% in 2019[4]. Since 2011, Government has provided £1.2 billion in grant funding to bring ultra low emission vehicles onto UK roads, supporting over 300,000 ULEVs, of which over 200,000 are zero emission vehicles (ZEVs). There are now over 373,000 ultra-low emission vehicles on UK roads[5]. Whilst new registrations continue to grow strongly, ZEVs represent only 0.5% of the total UK car fleet.

5.      The UK has been a global front-runner in supporting provision of charging infrastructure along with private sector investment. The Government’s vision is to have one of the best infrastructure networks in the world for electric vehicles, and we want chargepoints to be accessible, affordable and secure. Government and industry have supported the installation of nearly 20,800 public charging devices. This includes nearly 3,900 rapid devices.

Accelerating the shift to zero emission vehicles

Phasing out the sale of new petrol and diesel cars and vans: opportunities and challenges

6.      Decarbonising cars and vans is critical to meeting our climate goals. In 2019, cars and vans accounted for almost a fifth (19%) of the UK’s total domestic greenhouse gas emissions and 71% of UK domestic transport emissions[6].

7.      Poor air quality is the largest environmental risk to public health. Road transport is a major contributor (including 22% of NOx[7]), and the main driver of legal air pollution limits being breached in many cities across the UK. Delivering ZEV ambitions offers the main pathway to long-term compliance. ZEVs also deliver substantial energy security (reduced oil imports and the potential to store renewable energy) and noise reduction benefits that have the potential to transform the urban environment.

8.      There is also a significant economic opportunity for the UK in the transition to ZEVs and their supporting technologies. There is a global momentum towards zero emission vehicles and the global automotive industry is investing billions into new technology over the next five to ten years. Some estimate the global market for low emission vehicles could be worth up to £2 trillion per year by 2030 and over £7 trillion per year by 2050[8]. The UK is the fourth largest car maker in Europe. By bringing forward the phase out dates and committing £1 billion to develop the UK’s electric vehicle supply chain, we can lead the transition to ZEVs and seize new opportunities for growth and innovation.

9.      Today, owners of electric vehicles can have substantially lower fuel and maintenance costs compared to those with conventional vehicles. For example, it costs from 1p/mile to run a new electric vehicle, compared to around 10p per mile for new diesel/petrol vehicles[9] . Consumers are now turning increasingly to this proven technology, taking advantage of these lower running costs and performance advantages.

10.  Despite significant early progress, action is needed to go further. The market for electric vehicles and the necessary charging infrastructure is growing fast, but the barriers of vehicle price and supply, infrastructure provision, and the consumer experience of using the infrastructure need to be addressed.

Action required to encourage ZEV uptake and infrastructure

11.  Government had already committed £1.5 billion over the period 2015 to 2021 to support the early market and remove barriers to zero emission vehicle ownership. As part of the Ten Point Plan, Government has pledged a further £2.8 billion package of measures to support industry and consumers to make the switch to cleaner vehicles. The Government’s plans will foster the development of a charging infrastructure network to meet drivers’ needs, ensuring motorists can charge wherever they need to – at home, at work, on longer journeys, and by making sure our towns and cities are ready for the transformation

12.  To give greater clarity on the pathway to the phase out dates for industry, we have committed to publishing a delivery plan in 2021. This will set out key milestones and will see Government work with stakeholders to deliver these ambitions. In addition, the Department for Transport will publish a consultation in the coming months on regulatory measures for new road vehicles to ensure phase out dates are met and to support interim carbon budgets.

13.  The Government’s package of measures is set out below.

Incentives

14.  £582 million for plug-in car, van, taxi, and motorcycle grants to March 2023, reducing the purchase price of zero emission vehicles for consumers.

15.  Green number plates for zero emission vehicles were introduced in December 2020 to encourage drivers to make the switch. The plates increase visibility of the rapidly growing number of clean vehicles on our roads. They will help local authorities design and put in place new policies, such as zero emission zones.

Infrastructure

16.  We are committed the roll out of charging infrastructure that supports uptake and builds confidence in the transition to ZEVs. As part of this, we will deliver a package of measures to address market barriers:

1. Publish a new UK charging infrastructure strategy in 2021 setting out our long-term vision and building on the vision for a rapid charging network published in May 2020[10].
2. A £950 million Rapid Charging Investment Fund will support a network of rapid chargepoints along the strategic road network in England to support drivers undertaking long journeys. This Government fund will upgrades to the grid connections across the SRN, future proofing capacity and addressing the high up front grid connection costs at motorway service areas and strategic A road sites.
3. We will continue with all three of OZEV’s existing grant schemes to provide charging at home, on-street and in the workplace with £275m announced at Spending Review 2020. We will reform these schemes where appropriate to maximise the impact and additionality of this funding.
4. £90 million to support the roll out of larger on-street charging schemes and rapid charging hubs in England.
5. We will provide guidance to local authorities on how to facilitate, at a local level, the transition to ZEVs. This will include advice on infrastructure needs and parking allocation.
6. In 2019, the Government consulted on mandating all private chargepoints must be smart and meet minimum device standards. Government intends to bring forward the relevant legislation in 2021.
7. We have also consulted on proposals setting requirements for EV chargepoint infrastructure in all new residential and non-residential buildings, will respond in spring 2021 with regulations planned to come into force later in 2021.
8. We have published [note: consultation is due to launch 12 Feb 2021] a consultation on using powers under the Automated Electric Vehicles Act to mandate minimum standards to improve the consumer experience at public chargepoints. The consultation will include ensuring open, accessible and available chargepoint data, a reliable charging network, streamlined payment methods and clear pricing metrics.

Innovation

17.  Government has a longstanding programme of support to help transform the automotive sector to ZEVs. With industry, almost £1.5 billion has been invested through the Advanced Propulsion Centre and Faraday Battery Challenge to research, develop and commercialise low carbon automotive innovations.

18.  Government is also calling on industry to bring forward investment proposals for gigafactories to mass manufacture batteries for the next generation of electric vehicles and will continue to invest in automotive R&D for the design, manufacture and use of ZEVs, related technology and accompanying charging infrastructure. Since 2010, OZEV has invested around £300m to support ultra low and zero emission vehicle innovation projects including power electronics, machines and drives as well as innovative charging infrastructure.

Decarbonising buses

19.  Buses and coaches account for 3% of UK domestic transport emissions. While bus miles have reduced by 15% between 1990 and 2019, bus emissions reduced by 42% during that same period. There are around 32,300 buses in England: 2% are zero emission buses (ZEBs), with over 600 battery electric buses on the roads. Bus operators have invested significantly in new cleaner and greener buses in recent years, with Government initiatives such as the Low and Ultra-Low Emission bus schemes and benefitting many local areas.

20.  To drive and support decarbonisation of the fleet, the government announced in September 2019 as part of the Better Deal for Bus Users announcement a £50m all-electric bus town or city competition. In February 2020 the Prime Minister announced a £5 billion five-year investment in bus services and cycle routes, including a commitment to deliver 4,000 zero-emission buses. This commitment was reiterated in the 2020 Spending Review and 10 Point Plan published in November 2020, which reconfirmed the 4,000 zero emission bus ambition and committed £120 million to kick off this programme in 2021.

21.  These schemes will give government essential learning in how these vehicles can be rolled out on scale and how potential barriers, such as costs of both vehicles and infrastructure, can be tackled. These first steps will represent nearly 12% of the English bus fleet, and officials will continue to explore how we will the drive full decarbonisation of the entire fleet and address any further barriers and take advantage of opportunities, such as green finance.

22.  The National Bus Strategy will be published in the coming weeks and will outline the government’s long-term vision for buses.

Decarbonising Road Freight

23.  We are investing £20m this year in planning for zero emission road freight trials which will support UK industry to develop cost-effective, zero-emission HGVs and their refuelling infrastructure in the UK. These will advance R&D in the technologies of hydrogen, catenary electric and battery electric HGVs allowing us to begin the commercial roll out of the new technology before the end of the decade.

24.  We are consulting in 2021 on a phase out date for the sale of new diesel HGVs.

Road pricing

25.  The Government is committed to achieving net zero greenhouse gas emissions by 2050 and the transition towards zero emission road vehicles will make a vital contribution to this. As we move forward with this transition, we will need to ensure that revenue from motoring taxes keeps pace with this change, so that we can continue to fund the first-class public services and infrastructure that people and families across the UK expect. Any changes to the tax system will be considered by the Chancellor and any further steps will be announced in due course.

February 2021

Endnotes