Funding for low-emission CVs announced

The deputy prime minister Nick Clegg has announced the key elements of a £500m package of investment from the Office of Low Emission Vehicles (OLEV) for 2015- 2020, to encourage the use of ultra low-emission vehicles (ULEV) – including money targeted specifically at truck and bus operations.

Clegg pledged a sum of £4m towards gas refuelling facilities for HGVs, in order to help transport operators reduce their environmental impact – while £30m will be provided to boost the low emission bus market. A further £30m was committed to assist with the purchase of vehicles other than cars – including LCVs. The announcement follows a call for evidence launched by the government last November.

The Freight Transport Association (FTA), which was among the respondents to the consultation, welcomed the investment, pointing out that HGVs had previously not been supported in the scheme. FTA also raised the possibility that the £30m funding for ‘other vehicles’ including vans could also be opened up to commercial vehicles over 3.5 tonnes.

FTA’s head of urban logistics, Christopher Snelling said: ”This is a welcome development. It is good to see that the freight sector has been recognised within the funding package allocation and that there is acknowledgment by government that heavy goods vehicles have as many challenges as cars in reducing emissions.

“We anticipate that the funding package will contribute to increasing the uptake of gas and biomethane HGVs as the current lack of public refuelling infrastructure is one of the major factors preventing the market from taking off. The HGV funding is a relatively small part of the package, but we hope more can be allocated in future to this important area.

“Ultra low emission vans are not yet widely commercially viable, so the continued support in this area is vital to help develop this market.”

Mike Hawes, chief executive of the Society for Motor Manufacturers & Traders (SMMT) said: “The move towards a low carbon vehicle future must be built around the three pillars of consumer incentives, strategically focused infrastructure and increased leverage for R&D support. We therefore welcome this announcement which reflects that balanced approach but, significantly, seek to incentivise technical developments in all segments of road transport, not just passenger cars.

“UK vehicle manufacturers are already committing significant investment to the UK’s ULEV ambitions through research, development and production of zero and low emission vehicles and technologies. This funding package will help secure additional private sector investment, but more needs to be done to support academic research in this area – as well as developing the skills that will be essential if the UK is to become a global leader in ultra-low emission technologies.”