The Department for Transport (DfT) should support the adoption of ultra-low emission vehicles (ULEVs) through a guaranteed buy-back scheme or by underwriting risk, say MPs on the Environmental Audit Committee, which has published a report into sustainability at the DfT.

It says that the Government projections into ULEV adoption show it will miss the target for them to make up 9% of all new car and van sales by 2020.

The Committee is also concerned that the Department has no medium-term strategy to promote these vehicles after 2020.

Mary Creagh, chair of the committee, said: “We need 9% of all new cars to be ultra-low emission vehicles by 2020 if we’re going to meet our climate change targets at the lowest cost to the public. But the Department’s forecasts show it will get only around halfway to this target.

“The Department should also aim for almost two thirds of new cars and vans to be ultra-low emission vehicles by 2030. With no strategy, we have no confidence that the DfT will meet this target.”

The report also calls on the Government to help employers invest in charging points at the workplace.

Creagh continued: “Local authorities have a range of innovative ideas to drive take-up, such as supporting electric and low emission fleet procurement by underwriting risk or guaranteeing buy-back, helping workplaces invest in charging points, and introducing a national grant scheme for electric and low emission taxis. 

“Ministers should also think about changes to vehicle taxation, including company cars, to make electric vehicles more attractive.”

HM Revenue and Customs (HMRC) recently launched a consultation on company car tax to look at how it could help drive ULEV adoption (Fleet News: August 18). It is expected to make an announcement in the Autumn Statement. 

However, figures from the Society of Motor Manufacturers and Traders (SMMT) have already shown the fleet sector’s willingness to embrace alternative powertrains (Fleet News: August 18).  Almost three-quarters (72%) of plug-in registrations this year have been registered to business, with just one in four registered to private buyers.

“The leasing sector is leading the way with the adoption of ULEVs,” said Gerry Keaney, chief executive of British Vehicle Rental and Leasing Association (BVRLA), which is backing the committee’s call for further incentives for fleets to adopt plug-in vehicles.

He told Fleet News: “Some 4.2% of our leasing members’ vehicles are electric and 3.7% of their new registrations in Q2 2016 were pure electric or plug-in electric cars. This is well ahead of the market penetration achieved across all new registrations.”

But he said businesses will only be able to continue this growth with fiscal support from the Government. 

“We urge it to introduce a workplace charging point grant scheme, narrow the CO2 gaps between tax bands at the lower end of the company car tax scale, and make a bigger commitment to in-life incentives for users of plug-in electric vehicles,” he said.

The committee is also calling for van licensing conditions to be changed to take into account the additional weight of a battery or hydrogen tank.

Christopher Snelling, head of national and regional policy at the Freight Transport Association (FTA), said: “The suggestion of considering reforming weight limitations on alternatively-powered vans is welcome and should be explored further – subject to demonstrating it would not have a negative effect on safety.”

However, he added: “The missing piece in the report is heavy duty vehicles. From an engineering and technological point of view it is harder to decarbonise larger road vehicles – electric is not an option. 

“Trials of alternative power sources for lorries were made under the Government’s Low Carbon Truck Trial and a further low emission freight and logistics trial has recently been announced, but more fiscal support will be needed if these new vehicles are to be taken up by purchasers any time soon. Currently, alternatively-powered vehicles make up only 0.2% of the UK’s HGV fleet.”

The DfT is expected to formally respond to the committee’s report in the next few weeks.

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