Fleet News

Return for green grants ahead?

THE reinstatement of a grant for environmentally-friendly cars is a step closer following European Commission approval of the Department for Transport’s Low Carbon Car Fund scheme.

Following the collapse of the Powershift scheme 14 months ago through a combination of lack of funds and concerns that it breached European state aid rules, six new schemes were submitted to the European Commission by the Department for Transport, with a combined budget totalling £24 million.

The Low Carbon Car Fund was one of these programmes. Although details of the schemes remain confidential, experts believe it is likely that cars emitting 115g/km of CO2 or less would be eligible for a Government grant of between £300-£1,000.

Society of Motor Manufacturers and Traders chief executive Christopher Macgowan said: ‘Incentives are a fundamental way to drive a market.

‘The commission’s ruling has cleared the way for the UK Government to support the scheme as soon as possible.’

Now the scheme has gained European approval, it is down to the Department for Transport to rubber stamp it. However, there is no indication of when that may happen.

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