Select committee: Transport Committee

Zero emission vehicles and road pricing

Closed Opened 18 Dec 2020 Closed 14 Nov 2022 14 recommendations 4 conclusions
Inquiry scope (the committee's words)
This inquiry will consider the implications of accelerating the shift to zero emission vehicles and the potential for introducing road pricing, or pay-as-you-drive, schemes. The Transport Committee was one of the six commissioning committees behind the first UK-wide Climate Assembly, which published its report in September 2020. The Assembly put the emphasis on moving to electric vehicles and improving public transport rather than large reductions in car use. It also called for solutions which are accessible and affordable to all sections of society. Following the first session we split the inquiry into two parts. Our further oral evidence sessions on road pricing are available here . Read the call for evidence for more details about the inquiry .

Where it stands

The inquiry is closed, opened 18 December 2020.

The committee has published 1 report, most recently First Report - Zero emission vehicles on 28 July 2021.

The government's response

Published 25 October 2021. The deadline was 28 September 2021.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government accepts some of the Committee's recommendations in full and others in part, and says it will bring forward further proposals and an Electric Vehicle Infrastructure Strategy.

  • On a ZEV mandate, the government "partially accepts" the recommendation, with a ZEV Mandate combined with a CO2 regulation as its "preferred option". Specific proposals will follow the Green Paper consultation, "most likely starting in early 2022".
  • It accepts the recommendations on a charging infrastructure strategy, saying the Electric Vehicle Infrastructure Strategy, "to be launched this Autumn", will outline roles and responsibilities so "no areas are left behind".
  • On funding "charge point champions", it partially accepts but says the LEVI fund "is a capital only fund and cannot be used to pay for chargepoint champions directly".
  • On mandating industry pricing to shift charging behaviour, it partially accepts, saying "it is not our current intention to mandate" this in full. It has committed to legislation in Autumn 2021 requiring smart functionality for new home and workplace chargepoints.

Read the government's response ↗ Report an error

Recommendations and conclusions 18 shown

Recommendation 1

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
A healthy used electric vehicle market is critical to ensuring that electric vehicles are not the sole preserve of people who can afford new models. The Government’s position is that current incentives to stimulate the sale of new EVs are sufficient to support the development of the second-hand EV market. However, electric vehicles that will be traded on the second-hand market in three to five years’ time are likely to be more expensive to buy upfront than comparable ICE models. To drive mass consumer uptake of ZEVs, the Government must ensure that the market facilitates the supply of affordable new and used electric vehicles.

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Recommendation 2

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
In order to ensure that the Government achieves the targets set out in the Transport Decarbonisation Plan, it may need to intervene to support the second-hand market in electric vehicles until price parity with comparable ICE vehicles is reached.

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Conclusion 3

Conclusion · First Report - Zero emission vehicles · Addressed to Department for Transport

Concluded (the committee's words)
A zero emission vehicle mandate would: • be revenue neutral; • provide certainty to allow manufacturers to invest in the UK and supply a sufficient volume of ZEVs to meet the UK’s decarbonisation commitments; • reduce costs for consumers by increasing the supply of electric vehicles; and • free taxpayers from the annual £135 million cost of the plug-in car grant.

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Recommendation 4

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
In order to achieve its 2030 and 2035 targets, the Government must introduce a ZEV mandate to incentivise manufacturers to sell an increasing proportion of ZEVs or to purchase tradeable credits year-on-year, reaching some 100% ZEV sales by 2030.

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Recommendation 5

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
The Government must define ‘significant zero emissions capability’ for the automotive manufacturing industry, while ensuring that only the cleanest possible hybrid technology is available until 2035. It should also maintain a technology-neutral approach to the transition to ZEVs and explore the potential of alternative fuels, such as hydrogen or other alternatives to petrol and diesel, where possible.

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Recommendation 6

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
Drivers who do not have access to off-street parking and who live in rural or remote areas may struggle to charge their vehicles. To ensure that a comprehensive network of electric vehicle charging infrastructure is in place by 2030, sub-national transport bodies and local authorities will need to implement strategies to deliver a range of practical and accessible charging solutions to suit local needs.

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Recommendation 7

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
As part of its electric vehicle charging infrastructure strategy, the Government must explain: a) how it will support all regions and local authorities to deliver sufficient and well- maintained charging infrastructure solutions tailored to local needs, so that no area is left behind; and b) how it will ensure that the roll-out of charging infrastructure keeps pace with the increase in EVs and that the right types of chargers are in the right locations.

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Recommendation 8

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
To facilitate the roll-out of charging infrastructure, the Government must: a) use the upcoming Planning Bill to make public charge point provision a requirement of local plans; b) make funding for the on-street residential charging scheme dependent upon local authorities having detailed charge point plans in place which support rapid charging options; and c) ring-fence a portion of the £90 million local charging scheme to allow local authorities to employ dedicated ‘charge point champions’ to deliver local charging infrastructure strategies.

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Recommendation 9

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
The Government must work with National Grid to map the electricity network to assess potential weak areas, especially in rural locations, and to develop a plan to prevent ‘not-spots’ from emerging similar to those during the roll-out of broadband and mobile coverage.

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Recommendation 10

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
Project Rapid, which specifies the number of charge points on the strategic road network by 2023 and beyond, is welcome. However, the spending priorities for the £950 million rapid charging fund are currently obscure. Given the time and expense involved in upgrading grid connections, it is crucial that this money is distributed to unlock investment, provide fully future-proofed grid capacity and secure public confidence in charging infrastructure.

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Recommendation 11

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
The electric vehicle charging infrastructure strategy must set out: a) how the £950 million rapid charging fund will be spent to facilitate the implementation of charging infrastructure; and b) the measures that the Government is taking to identify and address under- provision at locations outside the strategic road network, where grid connection costs and grid upgrades are expensive and the business case for investment is weak.

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Recommendation 12

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
The Government must amend the wayleave regime for installing charging infrastructure to ensure that that regime does not act as a barrier to roll-out.

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Conclusion 13

Conclusion · First Report - Zero emission vehicles · Addressed to Department for Transport

Concluded (the committee's words)
Charging an electric vehicle should be convenient, straightforward, and inexpensive. To boost consumer confidence in the charging network, to maximise convenience and value for motorists and to facilitate connectivity, all charge points should Zero emission vehicles 35 be interoperable and provide a seamless experience for drivers. We welcome the Government’s commitment to regulate interoperability and pricing transparency for public charge points later in 2021.

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Recommendation 14

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
In the charging infrastructure strategy, the Government must explain how it will improve the consumer experience at public charge points and ensure that a) drivers can seamlessly access any charging network in any location at any time; and b) charge point operators are not disincentivised from investing in charging infrastructure.

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Conclusion 15

Conclusion · First Report - Zero emission vehicles · Addressed to Department for Transport

Concluded (the committee's words)
People who rely on public charging infrastructure should get value for money and should not be disadvantaged by unfair pricing mechanisms.

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Recommendation 16

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
The Government must explain how it plans to tackle the potential price differential faced by people who cannot charge their vehicles at home and are compelled to rely on on-street public charge points. It could do this by: a) protecting the consumer from excessive costs where there are risks of local monopolies emerging; and b) addressing the discrepancy between the 5% VAT incurred on electricity at home compared with the 20% VAT incurred at public charge points.

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Conclusion 17

Conclusion · First Report - Zero emission vehicles · Addressed to Department for Transport

Concluded (the committee's words)
We welcome the Government’s commitment to mandate that all new private charge points should be equipped with smart functionality and to introduce the relevant legislation later in 2021.

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Recommendation 18

Recommendation · First Report - Zero emission vehicles · Addressed to Department for Transport

Recommended (the committee's words)
The Government must mandate industry to: a) use price as a lever to shift consumer behaviour away from conventional refuelling habits towards ‘a little but often’ approach; and b) incentivise consumers to charge at times when there is less demand on the electricity grid.

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Reports

1 report

Oral evidence sessions

3 sessions

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Date Session and witnesses Source
23 Jun 2021
Oral evidence session
Rachel Maclean MP · Department for Transport, Richard Bruce · Department for Transport
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9 Jun 2021
Oral evidence session
Andrew Hickford · Leeds City Council, Graeme Cooper · National Grid, Lucy Hayward-Speight · Transport for London, Mr Peter Molyneux · Transport for the North, Roger Hunter · Shell UK, Tanya Sinclair · Chargepoint
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28 Apr 2021
Oral evidence session
Caterina Brandmayr · Green Alliance, Ed Birkett · Policy Exchange, Edward Leigh · Smarter Cambridge Transport, Mr Eamonn Ives · Centre for Policy Studies, Ms Claire Haigh · Greener Transport Solutions, Professor Philip Booth · Institute of Economic Affairs, Sarah Owen-Vandersluis · KPMG
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Who gave evidence

15 witnesses

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WitnessOrganisationSessions
Andrew Hickford · Project Manager Leeds City Council 1
Caterina Brandmayr · Head of climate policy Green Alliance 1
Ed Birkett · Head of Energy and Environment Policy Exchange 1
Edward Leigh · Chair Smarter Cambridge Transport 1
Graeme Cooper · Head of Future Markets National Grid 1
Lucy Hayward-Speight · Transport Strategy & Planning Manager – Air Quality & Environment Transport for London 1
Mr Eamonn Ives · Head of Energy and Environment Policy Centre for Policy Studies 1
Mr Peter Molyneux · Major Roads Director Transport for the North 1
Ms Claire Haigh · Founder and Chief Executive Officer Greener Transport Solutions 1
Professor Philip Booth · Senior Academic Fellow Institute of Economic Affairs 1
Rachel Maclean MP · Parliamentary Under Secretary of State Department for Transport 1
Richard Bruce · Job share, Director, Energy, Technology and Innovation Department for Transport 1
Roger Hunter · Vice President Electric Mobility Shell UK 1
Sarah Owen-Vandersluis · Head of Public Sector Mobility and Trade Lead Partner KPMG 1
Tanya Sinclair · Senior Policy Director for Europe Chargepoint 1