Mobility Basic Figures

Between 2000 and 2007 there was a growth of 12% in the overall vehicle stock in UK and a growth of 5% of car vehicle kilometres per capita (-6% decreases per car). The price for gasoline has increased of 2% and diesel of 29%. From 1990 to 2004 in UK greenhouse gas emissions from transport increased by nearly 10 % mostly related to increasing road traffic. Within urban areas, the percentage of emission contributions due to road transport is particularly high - in London road transport contributes almost 80% of particulate emissions. The passenger vehicles stock in UK has increased from 10 millions in 1970 to 27 millions in 2007, whereas the stock of alternative vehicles and diesel cars grows continuously. The penetration of gasoline cars stayed nearly constant since about 1990. In 2007 there was a stock of about 3,200 electric cars in the UK, in 2008 a number of about 2,000 Flexi Fuel Vehicles were estimated (in 2008 452 FFV units were sold). According to data collection within the EU funded project MADEGASCAR for 2009 in UK there is a stock of only 4 biogas cars and no biogas busses/coaches or biogas heavy duty vehicles. Currently no passenger car models or light duty vehicles are available on the market that run with CNG/biogas. According toociety of Motor Manufacturers and Traders (SMMT) data in 2009 about 14.963 new green vehicles were registered in UK (in 2008 15.834) whereof 14.649 hybrid cars, 55 pure electro vehicles and 259 others.

There are a number of important incentive mechanisms for the usage of clean vehicles and biofuels, including tax incentives, emission standards and obligations for the usage of biofuel etc. Compared with other EU countries there are a wide range of governmental and non-governmental information sources on the environmental footprint of different vehicles. Furthermore, considerable efforts are made by the public sector concerning the procurement of clean vehicles including also the so called grey fleet (private vehicles of public employees).

Important projects to promote e-mobility are coordinated by the Technology Strategy Board (TSB), an organisation financed partly by the Britisch Ministry of Economy. I.e. there are 8 pilot projects started in summer 2009 ("Real life"-Trials) for testing e-mobilty solutions in different cities (budget of about 25 mill £). The TSB coordinates the so-called "Integrated Delivery Programme" that has an budget of about 200 mill £ ad its partly financed by private and public sources, The Programme aims to stimulate the marked introduction of electro vehicles in UK by joint research initatives and development projects (also the production of prototype vehicles).

According to 2008 figures UK is one of the smaller producers of bio fuel (biodiesel/bioethanol) within the EU (less than 10,000 TJ (8733)) (150,000 tonnes biodiesel in 2007). On the internet side www.biodieselfillingstations.co.uk there are listed currently about 70 biodiesel outlets for the UK (other calculations for E85 pumps shows only a figure of 21 pumps in April 2009). It is worth to emphasise that in some regions and central areas, i.e. Edinburgh, Cardiff, Hampshire, Lincolnshire, Suffolk no biodiesel fuelling facility seems to be available. Bioethanol blended petrol (5%) is available on nearly all refuelling stations in UK.

In the past the main barrier to the use of LPG in the UK has been the limited number of refuelling stations fortunately, this is no longer the case. Although there were only around 200 LPG filling stations in 1999, the number has increased to around 1,200 by 2006. The situation has approached the point where around 10% of all refuelling stations offer LPG.

One of the main barriers to the use of natural gas (NG) vehicles is the low number of gas refuelling stations. There are only around 30 CNG filling stations of which only 12 are fast-fill stations accessible by the general public (some of which require the setting up of an account).

According to data collection within the EU funded project MADEGASCAR for 2009 in UK there are no biogas refilling stations neither for private cars nor for public transport vehicles.

Given the coverage of the national electricity grid, it is relatively easy to install recharge points for electro vehicles as compared with other green fuels. For slow charging, all that is required as access to a standard 13 Amp socket. However, private users without access to a garage or a private road face significant difficulties in getting electricity companies to install roadside recharging points. Other than connecting up to a mains supply, a national network of fast-charging points has yet to be developed. Only a small number of car parks and parking spaces in the UK currently provide free access to recharging units for daytime 'top-up' refuelling - most of these being located within central London. The level of coverage is too likely to improve in city centres in the next few years, but is unlikely ever to match the number of refuelling stations for some of the other green fuels. The webpage www.lemnet.org/LEMnet_Land.asp list about 80 public accessible recharging stations for electric vehicles in UK.

At the current stage, there are four hydrogen stations in operation and five additional are planned (three in relation with the establishment of the Hydrogen Highway in around Peterhead). The first hydrogen station in UK in London Hornchurch nowadays is closed.

Fiscal Incentives

Graduated Vehicle Excise Duty (GRAD VED) is given in UK as an incentive to purchase vehicles with low emission levels (see www.hm-treasury.gov.uk/fin_bill01_clause13.htm). In 2009 VED was totally restructured with 13 new bands (A to M) replacing the former 7-band (A to G) system. VED is still be based on CO2 (for cars registered since 1st March 2001; for cars registered before March 2001, VED will continue to be charged according to engine size - £125 up to 1550cc and £190 for larger engine sizes.) and band A will continue to apply to all cars with CO2-emissions of up to 100 gCO2/km, but most bands are more narrow (bands B to I will only be 10 gCO2/km wide). The highest band M applies to cars with emissions of over 255 gCO2/km (currently the highest band applies to cars with over 225 gCO2/km). In addition, from 1st April 2010, a new 'first-year rate' will be introduced for all new cars during the first year of ownership and will be dependent on the VED band. All new cars with emissions of 130 gCO2/km or less will have a zero-rated first-year rate (i.e. no 'road tax' will be charged in their first year) and have to pay the standard rate thereafter; all new cars with emissions between 131 and 160 gCO2/km will pay the same first-year rate as the standard rate in 2010-11; and all new cars with emissions over 160 gCO2/km will pay a higher first-year rate, up to a maximum first-year rate for the most polluting cars of £950 in 2010-11. Consequently, more polluting cars will pay higher taxes and the least polluting cars will pay no tax. Drivers of clean vehicles in the UK benefit from the lowest band of vehicle excise duty (car tax), which is based on carbon dioxide emissions. In central London/Westminster, these vehicles are also exempt from the £8 daily London congestion charge. To be eligible the car must be on the current Power Shift Register. At present, these include the cleanest LPG and natural gas cars and most hybrid-, battery- and fuel cell-electric vehicles.

In April 2010 the company car tax for low emmission cars (1 to 75 g CO2 per km) or electro vehicles was reduced about 50% for the duration of five years. Furthermore, companies purchasing low emission cars with max. 110 g CO2 per km or electro vehicles enjoy a 100% "enhanced capital allowance" until 31.3.13.

The UK government established several incentives for E85 flex-fuel vehicles. These include a fuel duty rebate on E85 fuel (biodiesel and bioethanol) of 27.1 p per litre; a £ 10 to 15 reductions in the vehicle excise duty (VED); and a 2% annual company car tax discount for flex-fuel cars.

Fuel excise duty incentives are also given for gaseous fuels. Taking into account LPG's lower energy content and higher production costs, LPG car fuel costs are around 30% less than for a petrol car. Biogas used as a vehicle fuel is currently not distinguished from other road fuel gases, such as CNG or LPG, for fuel duty purposes. The current duty rate is 9p/kg. In addition VAT is applied to all road fuels at the standard rate of 17.5%. The fuel duty rate provides an economic incentive for all road fuel gases, since it is equivalent to 6.6 p/litre on an equivalent energy basis, compared with ULSD which incurs the full fuel duty of 47.1 p/litre. Biogas has a fuel duty advantage of 40.5 p/litre over fossil diesel.

Funding

Since January 2011 the British Government funds the purchase of electro cars with an amount of 5,000 £ per car. There are listed nine models which are licenced to enjoy the funding premium:, i.e. Vauxhall Ampera, Tata Vista und Nissan Leaf. The overall budget for this funding measure is about 50.6 mill EUR. In principle the vehicle list can be expanded (the list will be permanently updated). After an evaluation of the programme sucesse in principe the programme can be prolonged after 2012 (there is an additional budget of about 187 mill £; with the total budget the market introducing of about 46,000 electro cars could be stimulated).

In 1996, the UK government instructed the government funded independent body the Energy Saving Trust (EST) to set up a grant scheme in order to increase the uptake of and conversion to alternatively fuelled vehicles to improve air quality and reduce CO2 emissions from vehicles. The PowerShift scheme was joined in 2000, as a part of a bigger programme, by CleanUp involving other means to improve air quality, e.g. a grant scheme for diesel particle filters and New Vehicle Technology Fund - a funding programme for the development of cleaner and low-carbon vehicles. PowerShift has operated across England, Scotland, Wales and Northern Ireland. Within PowerShift, a grant was given to cover part of the costs when converting an ordinary vehicle to operate on Natural Gas or LPG or part of the extra purchase cost for natural gas vehicles, hybrid or electric vehicles. All kinds of vehicles were eligible, though cars and to some extent buses are dominating. To qualify, a vehicle producer or converter must have its vehicle emissions tested on an EU drive cycle by an independent testing facility and meet the standards laid down by the EST. The programme has had to close in 2005 as the funding process does not fit the EU rules for taxation and incentives however the so called PowerShift register is still in operation for qualifying manufactures and owners for other clean vehicle incentive schemas.

The Bus Service Operators Grant (BSOG) for community transport is a payment made to bus operators related to fuel consumption and offsets a high proportion (around 80%) of the duty paid on fuel consumed (about 1,000 per bus per year). The annual spend on BSOG is £436 million (2008/9) The Department for Transport has modified BSOG in April 2009 to provide  greener buses through rewarding gains in fuel efficiency and the introduction of low carbon buses. A new call with a budget of 15 mill £ (green bus fund) was launched in July 2010 by the British Ministry of Transport.

Infrastructure Grants: As described above the poor refuelling infrastructure for gas fuels is proving to be a market impediment for both fossil and biogas. The Department for Transport is funding a programme of infrastructure grants for refuelling and recharging stations for alternative, cleaner fuels. Funding is available for several non-traditional fuels, including natural gas/biogas stations. Grants cover the costs of civil engineering/construction, hardware and labour costs, with funding of up to 30% of eligible costs for natural gas/biogas dispensers. Additional amounts are permitted for small and medium enterprises and where the station is located in a region with special assistance under European Commission rules. Vehicles should be available that operate on the specified fuel, and they must have demonstrated emissions’ savings over equivalent petrol or diesel fuelled vehicles. The site must have third party access and not be too close to a similar refuelling station. Project partners must be signed up to the project and planning to use the site to fuel their vehicles. Infrastructure grands were also given to regional goverments for the installation of public recharging stations for electro vehicles, i.e. to the Midlands, Greater Manchester, the region East of England as well as Scotland and Northern Ireland (about 11 mill £ for the installation of about 4,600 recharging plugs).

Every year the Low Carbon Vehicle Partnership and Energy Saving Trust launch the Community Challenge which offers prizes of up to £5,000 for community based projects promoting low carbon vehicles and fuels or smarter, sustainable travel. The judges are looking for community groups to submit original ideas that reduce carbon emissions from travel and transport. There are three categories: Vehicles and Fuels, Smarter/Eco Driving and Reducing Car Use. Projects can deliver physical improvements, equipment or technological developments as well as providing information or setting up a scheme to promote sustainable transport.

Regulations

UK is one of the few EU countries having introduced a fuel economy label, which helps car buyers easily assess the impact on climate change of different cars based on a colored scale. The colours range from GREEN for cars with the lowest CO2 emissions (highest 'mpg') through the colours of the spectrum to RED for the most highly polluting vehicles (generally the lowest 'mpg').

• The colour-coded label is designed to provide information for each new car covering four interrelated issues: (1) Fuel economy (fuel use per mile/km); (2) Fuel cost per 12,000 miles; (3) Carbon dioxide (CO2) emissions per km; and (4) Vehicle Excise Duty (annual 'road tax').

• Carbon dioxide (CO2) emissions are measured over a single standard test-cycle and are quoted on a per kilometre basis. For a given fuel (petrol, diesel, LPG), carbon emissions are very closely related to fuel use – this means that a good fuel economy (low fuel use per km) equates with low CO2 emissions per km.

• Vehicle Excise Duty (VED or 'road tax') annual rates are shown on the car label according to the new A to M banding system. The annual rates range from £0 for new cars with low CO2 emissions (<100g/km) to £405 for new cars with high CO2 emissions (>255g/km).

• Fuel cost is estimated for a distance of 12,000 miles. This is based on the 'combined' fuel economy figure (see below) and a UK average fuel price. Fuel prices are quoted for petrol, diesel and liquefied petroleum gas (LPG) fuels.

• Fuel economy information is measured over three test-cycles: 'urban' (city driving), 'extraurban' (motorway) and 'combined' (mixed) and is presented in 'mpg' (miles per gallon) and 'litres/100 km' units.

The used car label is a voluntary initiative for dealers, developed by the Low Carbon Vehicle Partnership with support from the Retail Motor Industry Federation, the Society of Motor Manufacturers and Traders and the Government.

The Renewable Transport Fuel Obligation (RTFO) is due to come into effect in April 2008 and to become the UK's primary mechanism to develop a market for transport biofuels. The RTFO will place an obligation on fuel suppliers to ensure that a certain percentage of their aggregate sales is made up of biofuels. The effect of this will be to require 5% of all UK fuel sold on UK forecourts to come from a renewable source by 2010. The 5% by volume target represents the maximum biofuel content allowed by European specifications to be sold on the forecourts as standard petrol or diesel.

Low Emission Zone (LEZ): In several Cities, i.e. London and Norwich, there are implemented specific zoning schemas for vehicle usage to improve air quality in the city by deterring the most polluting vehicles from driving in the area. The vehicles affected by the LEZ are older diesel-engine lorries, buses, coaches, large vans, minibuses and other heavy vehicles that are derived from lorries and vans, such as motor caravans and motorised horse boxes. Cars and motorcycles are not affected by the scheme. In London the LEZ rules are applicable from 4 February 2008, a standard of Euro III for particulate matter (PM) for lorries over 12 tonnes, from 7 July 2008, a standard of Euro III for particulate matter for lorries between 3.5 and 12 tonnes and buses and coaches over 5 tonnes and from 4 October 2010, a standard of Euro III for particulate matter for larger vans and minibuses. To inform drivers that they are entering the LEZ, there are signs at the side of the road. There are no barriers or tollbooths. Vehicles not meeting the LEZ emissions standards will need to pay a daily charge if used within the LEZ. The Low Emission Zone (LEZ) operates 24 hours a day, 7 days a week, every day of the year including weekends and public holidays.

A nation-wide advice service was already in operation providing domestic energy efficiency advice from 48 advice centres in the UK. After receiving EU funded TREATISE training, three of the centres began also to provide cleaner transport advice, in particular by cross-selling transport advice to people that called for energy efficiency advice. The projects have been successful. To date more than 31,000 consumers have received cleaner transport advice and there are now plans to extend the consumer transport advice service nation-wide.

Across the public sector as a whole in UK there are spending of about £150 billion each year undertaking capital projects and buying in goods and services (£40 billion are spend by local governments whereof about £1,8 billion for transport vehicles). Increasingly these spending decisions are made in a sustainable way and many central and local authorities are adopting “green” procurement policies.

A multi-criteria analysis of PricewaterhouseCoopers, Significant and Ecofys from January 2009 for the years 2007/08 shows that 75% of all public procurement volume in the UK can be considered as green which was the highest score in the analysis. In the transport sector (vehicle purchase) the average level of green procurement on the total procurement value (indicator 1) was calculated with about 52% but the share of single contracts comprising green criteria on the overall number of contracts (indicator 2) was only about 20%.

In 2005 the UK Government has set up a Sustainable Development Strategy intending to “use its immense buying power” of the public sector to make rapid progress towards the sustainable development goals of the country (annually 1 million tonnes of CO2 savings until 2020). With over 300,000 passenger and commercial vehicles, the UK public sector collectively possesses the largest vehicle fleet in UK, so that a major impact on the development goals described above has to come from this side. The department of Works and Pensions has just re-tendered with the addition of 10 more departments and 54,000 vehicles, boosting the potential contract value to over £1 billion.

Basis of the vehicle procurement of the public sector in UK is the Public Contracts Regulations 2006. Part 7 sets out the possibility to set environmental standard for the purchase of products and services (obligations relating to taxes, environmental protection, employment protection and working conditions). With the Sustainable Procurement Action Plan from 2007 UK Government has established a mandatory policy framework for sustainable development which covers the government estate with targets on procurement for central Government departments. The Framework refers to a set of so-called Government Buying Standards which are designed to help buyers across the public sector with regard to sustainable procurement. Currently, there are around 50 standards in ten priority groups – and more are being added on an ongoing basis.

One of the ten priority spend categories at national level is the transport (business travel, motor vehicles). They set out the sustainable criteria that must be followed when buying a range of different products and services. The Government Buying Standards were originally introduced as Quick Wins in meeting Government-set environmental targets in 2003 but rebranded and redesigned during the years. These standards are set and reviewed by the Office of Government Commerce and the Department for Environment, Food and Rural Affairs. Government Buying Standards for transport and travel focus on capping the permissible emissions for car fleets and following EU wide criteria for sustainable travel. In 2009 the standards and targets for the government car fleet were under review and an updated Government new car average CO2 emissions target was published. According to this all vehicles purchased from the public sector should comply with the EU Green Public Procurement (GPP) criteria on transport.

In July 2011 the so-called Low Carbon Vehicle Public Procurement Programme (LCVPP) was established by the various local authorities and partly funded by the Ministry of Economy. The aim of LCVPP is stimulating the purchase of green vehicles (especially electro vehicles) within the public procurement of green vehicles. Public administrations purchasing those vehicles receive co-financing. I.e. the purchase of 25 Mitsubishi electro vehicles of the Centre of Excellence for Low Carbon and Fuel Cell Technologies was funded. The overall budget of the iniative is about 20 mill £ but additional 30 mill £ are planned to give in when it shows reasonable success. Members of the LCVPP initatives are e.g. Royal Mail, the Environment Agency, Transport for London (TfL) as a number of local authorities in Coventry, Liverpool and Newcastle.

The Public Contracts Regulations 2006

UK Government Sustainable Procurement Action Plan

Local government sustainable procurement strategy

OCG – Getting better value from your fleet

Transport Standards (Buying Standard for green Vehicles in public procurement)

PowerShift Register

Road Tax Bands

SDC Submission to the Environmental Audit Committee inquiry on Reducing Carbon Emissions from Transport

The Fuel Economic Label (with explanations)

Biogas as a road transport fuel