LowCVP News: Partnership responds to low carbon grant programmes closure
Sun 06 August 2006
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(Press release:)The Low Carbon Vehicle Partnership is disappointed that yesterday’s announcement to scrap low carbon vehicle grant support programmes was not accompanied by news of other financial incentives to encourage the marketing and purchase of low carbon cars, vans and buses. The Partnership, however, welcomes the proposed new communication campaign to promote low carbon transport.
The Powering Future Vehicles Strategy - to be reviewed this year - set a target for 10% of all new cars sold to be under 100g/km CO2 by 2012, and for 600 low carbon buses. In 2005, just 6 cars and 19 buses achieved the targets. There are insufficient incentives available for consumers to buy low carbon vehicles, and for car-makers to supply them. Levels of financial support are lower in the UK than in many other countries including France, Ireland, the Netherlands and USA.
Greg Archer, The LowCVP Director said: “DfT’s own research shows 88% of the public believe the Government should do more to persuade people to buy more fuel efficient environmentally friendly vehicles. Stronger incentives are needed to encourage sales of low carbon vehicles.”
The DfT announcement also confirmed that proposed grants for low carbon buses would be scrapped. Greg Archer said: ”Bus operators (outside London) receive a subsidy towards their fuel costs (via the Bus Service Operators Grant). There is no meaningful incentive to choose fuel efficient options.” The removal of the grant is a further setback for bus manufacturers and throws serious doubt on whether the 2012 bus target can be reached.” He added: “We will work constructively with the DfT to ensure that the proposed Bus Fleet Advice Programme offers effective support.”
The LowCVP welcomes the announcement of the new communications campaign to promote low carbon transport and other new programmes for travel planning and eco/safe driving. The LowCVP has been actively encouraging the Government to engage with consumers in this way. New colour-coded energy efficiency labels have been displayed in car showrooms for almost a year. In a recent survey 40% of car buyers recognised the new label (see note below). However, research (see link below) shows clearly that if the market is to accelerate for low carbon vehicles then education and engagement with consumers will not work in isolation.
The Government announced a consultation into the low carbon grant programmes in early 2004 and the agreed programmes were submitted for EU State Aid approval at the end of 2004. Greg Archer noted: “We appear to be little further forward than we were two years ago.”
Note: The results of the survey will be announced next week at the LowCVP Annual Conference – see the web-site home page for details.
Related Links
The LowCVP car buyer research report
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