Encouraging low carbon vehicle technologies and fuels

The take up of more efficient vehicles and alternative fuels are central to reducing CO2 emissions in the transport sector.

Photo by frankh

As with the energy hierarchy, step one should be to reduce the energy consumed through travel and step two should be to consider alternative fuels.

The major hits in reducing CO2 emissions are those that impact on private car and freight use. Other interventions (e.g. investment in public transport, walking and cycling) are, of course, important in providing alternative means of travel.

Low emission vehicles

A low emission policy lever at the national level is likely to be very important in reducing aggregate transport sector emissions. Efforts are likely to be initially based largely on hybrid technology, but also dieselisation and greater fuel efficiency in petrol engines.

There are major difficulties with the current level of technological penetration; hence major efforts need to be made in developing a range of incentives for the manufacturing and purchase of low emission vehicles. There are still only a few vehicles available with low emission profiles and consumer purchasing patterns still favour larger (therefore heavier) cars.

Policy interventions will need to be carried out mainly at the international, European or UK level. Voluntary targets with the car manufacturers have been established, and a target agreed that by 2008 all new vehicles in the EU would average 140 gCO2/km. The current level for new cars in the UK is well above this, at 167 gCO2/km (2006 data). The G-Wiz AC electric car is emission zero if fuelled by alternatively sourced electricity. The two best selling hybrids are the Toyota Prius II (104 gCO2/km) and the Honda Civic (106 gCO2/km), however market share is minimal – less than 7,000 hybrids were sold in the UK in 2006. As a comparison, 176,000 SUVs (Sports Utility Vehicles) were sold in the same year.

More details on vehicle CO2 emissions can be found via the Vehicle Certification Agency.

As set out in the King Review of low carbon cars it is likely that mandatory targets are required to reduce average emissions by 2050. However there is a lot that can be done at the local level to support and drive the move towards low emission vehicles.

At the city level facilities need to be developed for recharging. Low emission zones or favourable parking options can also incentivise uptake. The City of Westminster and the London Borough of Richmond-upon-Thames have both introduced parking concessions for electric vehicles. Westminster has introduced the largest network of electric car charging points in the UK.

Local authorities can also support the use of low emission vehicles by switching their public transport and business car fleets.

Alternative fuels

Alternative fuels can also be used in vehicles to reduce CO2 emissions. Options on the market include compressed natural gas, liquid petroleum gas, methanol, ethanol, biodiesel, hydrogen and electricity. Consideration at the city scale needs to be given to incentives for take-up and facilities for refuelling. The EU Biofuels Directive requires that 5% of all fuel sold in the UK will have to come from renewables by 2010/11 (subject to review).

The current level of renewable fuel usage is less than 3% of fuel sold. Mass market implementation may again prove to be difficult; there are many supply difficulties, particularly in the case of fuels such as bio-ethanol, including issues such as projected land take and competition with food production.

Cities can take the lead, particularly with public sector vehicle fleets, in specifying that they are alternatively fuelled. London, for example, trialled the use of fuel cell buses as part of a wider demonstration project and is introducing them into the wider fleet this year. In addition, the Mayor of London is providing £1 million funding to trial low carbon technology in London's taxi fleet. The funding is to be provided jointly by Transport for London (TfL), through its Climate Change Fund, and Cenex, the UK's National Centre of Excellence for Low Carbon and Fuel Cell Technologies.

Financial incentives

Financial mechanisms can also be important in facilitating the switch to low carbon vehicles. Options at the national scale include variable excise duty relative to emissions and carbon taxes. Most UK cars are liable to an annual ‘road tax’ known as Vehicle Excise Duty (VED) or Graduated Vehicle Excise Duty (GVED). VED applies to cars registered before 1 March 2001 charged by engine size. After that date GVED is graduated, based on a car’s emissions. Keepers of cars emitting less than 100gCO2/km pay zero GVED, those less than 120gCO2/km pay £35 per year, and over 225 gCO2/km (Band G) pay £400 per year. Changed rates are planned for 2009.

The difficulty with the VED policy is that incentives need to be of a scale likely to influence behaviour, and currently they are not. Company car tax is also based on a combination of a car’s value and CO2 emissions - more details are again found via the Vehicle Certification Agency. A fuel duty ‘escalator’ was used nationally to increase the price of fuel between 1993-2000, with variable annual increases, between 3-6% above the inflation rate. The escalator was withdrawn following the UK fuel protests, highlighting the political difficulties involved in increasing the cost of travel.

Priority: reduce car use and improve the carbon efficiency of vehicles
Tags: energy, national level, transport, regions and subregions, cities and towns