MPs call for tax incentives to boost sales of battery-powered vehicles (BPVs) to help meet air-quality targets

Tesla's Model S battery-powered-car (BPV)
Tesla’s Model S battery-powered-car (BPV)

The UK needs a clear strategy to increase the use of ultra-low emission vehicles and reduce air pollution so that it can meet decarbonisation and air quality targets – according to a new report by MPs on the Environmental Audit Committee

The Government’s own projections show they will miss the target for ultra-low emission vehicles to make up 9% of all new car and van sales by 2020, which the Committee on Climate Change says is necessary to meet climate change targets in the most cost-effective way.

Mary Creagh MP, Chairman of the Committee, said: “The uptake of ultra-low emission vehicles (like battery powered vehicles), is too low to meet the UK’s climate change targets at the lowest cost to the public.

“Air quality targets that were supposed to be met in 2010 won’t be hit until 2020 at the earliest. And it’s been almost a year since we discovered VW had fitted cars with cheat devices, but government has still to decide what action to take against the company.”

“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 half way to this target.

“This failure risks making it more expensive to meet our long term carbon reduction targets. 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.”

Local authorities and the car industry have suggested ways in which the Department could increase electric vehicle use, both private and public, over the next decade and beyond.

Creagh added: “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.

“The Government needs to give manufacturers – such as Nissan, Honda, LTC, and Toyota – a reason to choose their UK car factories – in places like Sunderland, Swindon, Coventry, and Derby – to manufacture the next generation of low emission vehicles. This would encourage Nissan to manufacture the next generation of their electric car, the Leaf, in Sunderland, from 2018.

“With the vote in favour of British Independence from the EU-bloc, there’s a material risk to our air quality targets. At the very least, the Government should commit to keeping existing European air quality standards.

“We also want the Department to work with the Treasury, Health and Local Government Departments to ensure the benefits of clean air are properly costed in transport investment decisions.”

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