My view on DfT's Road to Zero Strategy

My overall sense from the document is that is absolutely a step in right direction with some strong commitments and intent across the 46 points, however, I do feel we are still being quite cautious.

• I was encouraged by the unequivocal support for EV charging infrastructure and the R&D investment with support totalling an investment of ￡1.5bn across the entire package
• Further, encouraging steps were announced towards supply chain development and some further thought has been given to impact management on the energy networks. I would be keen to see further detail and development of this.
• Lastly, implementing some easy wins (e.g. updating DVLA documentation, updating planning policies), setting up some much needed consultations (e.g. network barriers to fleet operators) and supporting joined up thinking (e.g. conducting roadshows for local authority best practices etc) was also welcome.

 However, low points for me were:

• It offered interim 2030 sales targets which KPMG analysis suggests ensures that the UK stays ‘on path’ to achieve a 2040 ban. If the UK is to be a world leader, compared to global ambitions – Paris ICE ban in 2030; NL ICE ban in 2030; Rome ICE ban in 2024; China targets 10% of sales by 2019 – the 2030 strategy needed to be bolder.
• Further the 2040 ban will not include hybrids which to me seems confusing!
• Lastly, it was light on plans to address emissions in freight (esp Medium and Heavy Good Vehicles which contribute 30% of transport emissions).

Keen to hear others’ views.. and looking forward to solving this together.. as critical as we are on government, no one organisation/body has all the answers! 

Detailed Summary:

Long term ambition:

• 2040 ban remains despite calls for government to bring this forward
• Technology neutral approach indicates that hybrids will not be banned in 2040 – a point Chris Grayling made this clear in his speech this morning as well
• Interim sales targets have been set for 2030 in order to enable 2040 ban: 50-70% of new car sales and 40% of new van sales to be ULEV
• Progress check in 2025 to ascertain ‘interventions required’ – potential referring to powers in the AV-EV Bill to mandate public charging infra in MSAs (Motorway Service Areas) and forecourts

Existing vehicles:

• Biofuels 15 year strategy for 7% of transport fuels by 2032; unclear how this aligns to RTFO (Renewable Transport Fuels Obligation) 12.4% target

Uptake of new vehicles:

• Continue to at least match EU vehicle emissions regulation (even after Brexit)
• No immediate increase in consumer incentives and grants for plug-ins, with commitment to continue incentives in some form even beyond 2020
• Intent to reform vehicle excise duty to incentivise van drivers
• 2018/19 Go Ultra Low campaign expected
• Central government car fleet to be ULEV by 2030

Freight:

• Quite light on any concrete actions for alternative fuels/ drivetrains in commercial vehicles
• Voluntary industry commitment to reduce GHG emissions in HGVs by 15% by 2025
• Commissioned further research on Natural Gas HGVs emission gains though arguably, there is already existing/ proven research and proof of countries in a number of European markets

Industrial strategy:

• Overall ￡1.5bn committed in investment
• Encouraging R&D spend and incentives – target of R&D investment of 2.4% of GDP by 2027; and increase in tax credit to 12%
• ￡246m funding on battery research through Faraday challenge
• Some initial steps towards supporting the supply chain and skills development

EV charging infrastructure and energy system:

• Significant support provided for charging infrastructure:

1. ￡400m charging infra investment fund
2. All new housing to have EV charging
3. All new street lighting to support EV charging
4. Workplace charging grant increased to a max of ￡500
5. ￡4.5m in on-street resident charging scheme until 2020
6. ￡40m R&D programme to trial wireless charging and public on-street charging solutions
7. Continued proposal for AV-EV bill to potentially mandate EV charging infra on forecourts, enforce inter-operability, 'smart' and data sharing

• Energy system management:

1. EV taskforce to ensure energy system can meet EV demand
2. Future proofing SRN by running pilots to increase electrical capacity at MSAs
3. Evidence and consultation to understand the infrastructure/ network barriers for fleet operators

• Exploring case for direct government support in areas of market failure e.g. rural areas

Local action:

• fulfillment of ￡48m and ￡6m for bus and taxi charging infrastructure 

Full paper can be found here