Government publishes new strategy to drive introduction of ULEVs

Thu 05 September 2013 View all news

The Government has launched 'Driving the Future' a renewed strategy to promote the production and uptake of ultra low emission vehicles (ULEVs). Transport minister Norman Baker, launching the strategy at Cenex's LCV2013, said that it signals a major change in the way vehicles will be powered in the future and reaffirms the Government's commitment to promote the greening of the motor industry which will also provide jobs and growth.

The Office for Low Emission Vehicles (OLEV) is inviting industry to have a say through a call for evidence on how best to invest £500 million of funding between 2015 and 2020 (recently announced in the Action for Roads report) to drive the revolution and establish the UK as a premier market for ultra low emission vehicles (ULEVs). The call for evidence will be launched shortly.

Other key commitments in the strategy include:
• Reconfirmation of plug-in vehicle grants to remain unchanged until May 2015 and a commitment that consumer incentives will remain in place beyond this date.
• An update to the update the Government Buying Standard for Transport by summer 2014 to encourage higher ULEV uptake in the public sector.
• Exploring options for government funding for hydrogen refuelling stations
• Maintaining a strong, clear and lasting set of tax incentives for ULEVs until at least 2020 and committing to involving industry partners in the
process for subsequent development of the tax regime. 
 
The strategy sets out Government’s 5 main aims:

Supporting the early market for ULEVs:
• through plug in grants or other consumer incentives – providing certainty for investors and consumers;
• by raising awareness of the benefits with a government and manufacturer-run campaign
• by encouraging higher uptake in the public sector

Shaping the necessary infrastructure:
• by providing investment for the installation of chargepoints in homes, railway stations and public sector car parks and rapid charge points for longer journeys
• exploring options for a new network of hydrogen refuelling stations to support introduction of fuel cell electric vehicles in the UK

Securing the right regulatory and fiscal measures:
• by maintaining tax incentives for the purchase of ULEVs until at least 2020
• clarifying the tax position on ULEVs and providing more information for fleet managers on costs
• working to secure ambitious but realistic EU emissions targets

Investing in UK automotive capability:
• by working with the Automotive Council to develop and strengthen the ULEV supply chain and discussing with industry on where to target research and development funding
• by working with partners to maximise the benefits for the UK from the move to ULEVs
• by offering £10 million prize to develop a new long-life battery for next generation ULEVs

Preparing the energy sector:
• by ensuring the forthcoming national household roll-out of smart meters will support plug-in vehicle charging

Norman Baker said: “These are exciting times for the motoring industry as ultra low emission vehicles are the future for road travel. Our vision is that by 2050 almost every car and van will be an ultra low emission vehicle with the UK at the forefront of their design, development and manufacture. This strategy moves us up a gear in pursuing that vision." .

Business Minister Michael Fallon said: “The automotive industry provides thousands of high-quality jobs across the country and we are determined to keep it that way. By setting out the level of our financial support up to 2020 we are demonstrating our long-term commitment and giving business the confidence to invest.

"We will keep working in partnership with industry on where our investment can best drive growth as we support the transition to ultra low emission vehicles.”

The Government says that its long term strategic approach will deliver:
• a growing fleet of, and private markets for, ultra low emission vehicles (ULEVs)
• a network of charging points and other infrastructure making ULEVs an attractive proposition
• the development of world class skills and facilities for the development of ULEV technologies leading to global export
• a smarter electricity grid to benefit vehicle owners and the electricity system

The Society of Motor Manufacturers and Traders new Chief Executive Mike Hawes said: “The UK must be a lead producer and market for low and ultra-low carbon vehicles. We’re pleased to see the strategy set out a longer term approach to the incentives, policies and initiatives which are needed to create confidence for vehicle buyers and manufacturers. We strongly support the collaborative approach with our industry which will help to secure the UK’s position as a leader in the development, production and use of ultra low emission technologies.”

The Government also published a number of research outputs alongside the strategy which summarise key evidence including:

  • Assessment the role of the plug-in car grant and plugged-in places scheme in electric vehicle take-up (Link here)
  • Lessons learnt from the plugged-in places projects (Link here)
  • High level analysis of the plugged-in places chargepoint usage data (Link here)
  • Ultra low carbon vehicle demonstrator programme (Link here)

 

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