The Chancellor has acted on recommendations made in the final part of the King Review of low-carbon cars, which was published to coincide with the Budget.
The Review makes recommendations for action to cut emissions from transport in four key areas:
• reducing vehicle emissions;
• cleaner fuels;
• consumer behaviour; and
• research and development.
In light of the Review's key recommendations, Alistair Darling promised:
• Government support for setting an EU-wide longer term target for car manufacturers to reduce average new car CO2 to 100g/km by 2020;
• that the duty differential for biofuels will be abolished in 2010/11 and from then the Renewable Transport Fuel Obligation will provide the total incentive for biofuels, reflecting carbon efficiency and sustainability;
• that the Department for Transport will collaborate with the low carbon vehicle partnership to explore initiatives highlighted by the review to raise consumer awareness of environmental impacts; and
• a £40 million research programme into low carbon vehicle concepts.