Source · Select Committees · Transport Committee
Recommendation 12
12
Accepted in Part
Paragraph: 103
We are not convinced by the Government’s argument that incentivising the purchase of a zero-emission...
Conclusion
We are not convinced by the Government’s argument that incentivising the purchase of a zero-emission buses will no longer be necessary once their lifetime cost decreases to that of comparable diesel buses. The up-front cost of ZEBs will remain higher, especially when the cost of upgrading and replacing infrastructure is included. That will be enough to put off many potential buyers. If zero-emission buses are the right choice to meet this country’s Net Zero goals, as the Government has said, then it should not leave the job half-done.
Government Response Summary
The government will announce an end date for the sale of new non-zero emission buses, publish the consultation response, and set out the UK's roadmap to achieving an entirely ZEB fleet; they also highlight the funding already awarded for ZEBs. However, they did not specifically address the concern about upfront costs and infrastructure.
Paragraph Reference:
103
Government Response
Accepted in Part
HM Government
Accepted in Part
The Government partially accepts this recommendation. Buses have a crucial role to play in transport achieving net zero and driving the green transformation. As such, the Department consulted on setting an end date for the sale of new non-zero emission buses in spring 2022, inviting views on a date range of 2025– 32. We will shortly make an announcement on the end of sales date, and publish the consultation response. In addition we will set out in due course the UK’s roadmap to achieving an entirely ZEB fleet. This will include a date as to when we expect the UK to achieve an all zero-emission bus fleet. In this Parliament we have so far awarded over £330m of dedicated funding for ZEBs in England of the total allocated through the Spending Review 2021. Areas that have received Zero Emission Bus Regional Areas (ZEBRA) funding, include some predominantly rural areas, such as North Yorkshire which received £7.8m. As well as supporting new zero emission buses, ZEBRA funding enables bus depots to be upgraded with infrastructure to accommodate new electric or hydrogen vehicles. The development of energy storage and smart charging technologies can also mitigate the need for expensive grid connections, both in rural and urban areas. The ZEBRA scheme encouraged bidders to consider these innovative energy solutions, ensuring that areas with poor connectivity are still able to benefit without the need for prohibitively expensive grid reinforcement. The UK is subject to the World Trade Organisation’s (WTO) Government Procurement Agreement (GPA), which opens up procurement markets among its parties. As such, UK businesses can bid for certain procurement opportunities in the other parties’ territories and vice versa. UK-based manufacturers and other businesses have benefited from funding schemes including the Zero Emission Bus Regional Areas (ZEBRA), the All- Electric Bus Town or City scheme and the City Region Sustainable Transport Settlement scheme. Wrightbus and Alexander Dennis Ltd have, so far, received orders for nearly 500 ZEBs and 350 ZEBs respectively from these UK Government funding schemes.