Zero emission vehicles Contents

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1Introduction

1.It is estimated that the transport sector accounted for 27% of UK greenhouse gas emissions (GHG) in 2019.1 The major source of those emissions was petrol and diesel consumption in road transport.2 Carbon dioxide (CO2) emissions from transport decreased by 19.6% in 2020 due to national lockdowns during the coronavirus pandemic.3 Although the long-term effects of the pandemic on transport are currently obscure, car usage has recovered faster than public transport modes and appears to be returning to pre-pandemic levels.4 New car sales decreased by 30% in 2020, but consumer confidence may be returning.5 The Climate Change Committee (CCC), an independent, statutory body established under the Climate Change Act 2008, recommended that the Government and the automotive sector should prioritise sales of electric vehicles, wherever possible.6

Phasing out sales of new petrol and diesel cars and vans

2.In 2018, the UK Government published its Road to Zero Strategy, which set out the Government’s long-term plans for the transition to zero emission road transport. The strategy committed to ending the sales of all new conventional cars and vans by 2040.7 Since then, the Government has set a legally binding target to reduce net GHG emissions by 100% relative to 1990 levels, or ‘net zero’, before 2050.8 For the transport sector successfully to contribute to the net zero target, the CCC recommended that all new cars and vans should be zero emission by 2035 at the latest, or 2030 if possible.9 In February 2020, the Government launched a consultation on bringing forward the phase-out date in line with the CCC’s recommendation. In its 2020 progress report to Parliament, the CCC reassessed the phase-out date and recommended that sales of all new vehicles capable of producing exhaust emissions, including plug-in hybrids (PHEVs), should end by 2032.10

3.In November 2020, the Government published its Ten Point Plan for a Green Industrial Revolution, which brought forward the date to end the sale of new petrol and diesel cars and vans to 2030. All vehicles will be required to have ‘significant zero emission capability’ (including PHEVs and full hybrids) from 2030 and be 100% zero emission from 2035.11 Rachel Maclean MP, Parliamentary Under Secretary of State at the Department for Transport (DfT), told us that the decision to bring forward the phase-out dates to 2030 and 2035 was based on “a vast amount of analysis” and engagement with industry.12 The Government’s consultation included 1,478 responses from individuals and 173 responses from organisations.13 Several vehicle manufacturers have announced plans to manufacture electric vehicles.14 However, a clear policy framework is now required to ensure that industry can deliver the vehicles and charging infrastructure needed to meet the Government’s ambition.15

4.Transitioning to electric vehicles will not be sufficient to achieve the Government’s net zero ambitions.16 Ending the sales of new petrol and diesel cars and vans will need to be accompanied by other policies to decarbonise transport. Three weeks after our final evidence session, the Government published its long-awaited Transport Decarbonisation Plan (TDP), originally set to be published in 2020 and then delayed until Spring 2021. The TDP is an important policy document that plays a key role in informing the Government’s policy framework for the transition to zero emission vehicles (ZEVs). Alongside the TDP the Government has published two other critical documents to the delivery of ZEVs. Those documents are:

• Green Paper on a New Road Vehicle CO2 Emissions Regulatory Framework for the United Kingdom (consultation closes 22 September 2021); and
• Transitioning to zero emission cars and vans: 2035 delivery plan.

The third critical document, an electric vehicle charging infrastructure strategy, is due to be published before the UK hosts the UN Climate Change Summit (COP26) in November.

5.We received written and oral evidence on vehicle sharing. According to Transport & Environment, the average car in the UK is parked for more than 95% of the time, with some 29% of vehicles driving less than 5,000 miles in a year.17 Transport & Environment argued that a large proportion of car owners would benefit financially by not owning their vehicles and instead switching to a car club (or car sharing scheme).18 Car clubs have the potential to offer an accessible and affordable alternative to car ownership for drivers who want to switch to electric vehicles.19 Car clubs also offer environmental benefits by reducing the number of cars on the road.20 Car clubs could also contribute to reduced congestion and an increase in public transport and active travel.21 However, the cost savings associated with running electric vehicles accrue to the car club customer and not the operator, meaning that any profitable business model is potentially hindered by the high upfront cost of purchasing vehicles.22 The British Vehicle Rental and Leasing Association (BVRLA) argued that that effect could be mitigated by introducing zero VAT rates on electric vehicles purchased by car clubs.23 The Institute for Public Policy Research (IPPR) told us that the Government should support the transition to ZEVs through schemes that incentivise car owners to trade their internal combustion engine (ICE) models for sustainable travel options, including car clubs, rather than a new car.24 Transport & Environment argued that the charging infrastructure network has been focused on residential and fleet charging.25 This is reflected in current policy with car clubs being exempt from the on-street residential charging scheme (ORCS). Groupe Renault told us that the Government should invest in community charging.26 Transport for West Midlands suggested that infrastructure to help all vehicles to decarbonise requires an integrated transport planning system.27 Shared mobility hubs could provide facilities for a range of users and vehicles, from goods vehicles and buses to e-bikes, e-scooters and EV car clubs.28 The Minister told us that the Government is supporting car clubs through its current package of incentives, which includes the plug-in car grant.29 The Transport Decarbonisation Plan committed the Government to supporting car clubs to go fully zero emission. The Government will publish guidance for local authorities to support shared car ownership, including the provision of car club infrastructure.30

Zero emission vehicles terminology

6.We use the term ‘zero emission vehicle’ (ZEV) to mean an electric vehicle that produces zero CO2 or nitrogen oxides (NOX) from the exhaust when driving. However, this terminology does not cover all electric vehicles. Although hybrids have varying zero emission ranges—the distance that they can travel in pure electric mode—they are not zero emission vehicles, because they still burn fossil fuels.31 For the purpose of our inquiry, ‘electric vehicles’ (EVs), also known as ‘ultra-low emission vehicles’ (ULEVs), are any vehicle powered by a rechargeable battery. This covers:

• Battery Electric Vehicles (BEVs), or ‘pure electric’ vehicles, which use the battery as the only power source;
• Plug-in hybrid electric vehicles (PHEVs), which switch between a battery and an internal combustion engine (ICE). These typically have a smaller battery and a lower zero emission range;
• Hybrid electric vehicles (HEVs), or ‘full hybrids’ which do not plug in to the electricity grid, have much smaller batteries and recharge while driving; and
• Fuel cell electric vehicles (FCEVs), which use on-board hydrogen fuel cells to generate electricity rather than plugging in to the electricity grid to recharge.32

Legacy petrol- and diesel-powered motoring

7.Although the Government is committed to ending the sale of new petrol and diesel cars and vans, the DfT must take account of legacy petrol and diesel-powered motoring. The 2030 phase-out date will not eliminate ICE vehicles from the used car market, meaning that drivers may continue to opt for those vehicles.33 The drivers of legacy vehicles may be on lower incomes and should not be penalised if they cannot afford to switch to electric vehicles, especially if a car is their primary means of transport.34 Many older, classic petrol and diesel cars are also likely to remain on the roads.3536

Our inquiry

8.We launched an inquiry in December 2020 called Zero emission vehicles and road pricing. The inquiry was split into two parts, with ZEVs forming the first part. We have already received evidence on the merits and challenges of introducing a road pricing scheme to replace the £40 billion annual income from Fuel Duty and Vehicle Excise Duty, the loss of which will be a likely consequence of the transition to ZEVs. We will take further evidence on road pricing, which will lead to a subsequent Report.

9.We invited written evidence on accelerating the shift to ZEVs, including the feasibility of the 2030 and 2035 phase-out dates, the actions required by the Government and private operators to increase uptake of ZEVs and provision of charging infrastructure, the challenges around decarbonising buses and the Government’s ambition to end the sale of new heavy goods vehicles (HGVs). In response to our call for evidence, we received a total of 148 submissions (15 of which were confidential) and held three oral evidence sessions between April and June 2021. We met policy think-tanks, charge point operators, National Grid, sub-national and local transport bodies, Rachel Maclean MP, Parliamentary Under Secretary of State and Richard Bruce, Director of Environment and Future Mobility at the Department for Transport.

10.We visited ChargePoint’s research and development lab in Berkshire in May 2021 to meet industry professionals to discuss the challenges in providing adequate charging infrastructure and to learn how charge point technology works. We also launched a survey via social media in May 2021 asking drivers to tell us what they thought about purchasing electric vehicles. A total of 979 people responded to the survey, the results of which are set out in Annex A. We would like to thank everyone who contributed to our inquiry.