5
Recommendation
First Report - Low emission cars
Accepted in Part
There are other issues to be addressed in the transition to zero-emission cars, such as the need to train and retrain the workforce required to service the new car fleet, the impact on the demand for power, and the tax implications from phasing out new petrol and diesel cars. There …
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There are other issues to be addressed in the transition to zero-emission cars, such as the need to train and retrain the workforce required to service the new car fleet, the impact on the demand for power, and the tax implications from phasing out new petrol and diesel cars. There are numerous uncertainties that the responsible Departments must overcome as petrol and diesel cars are phased out. The skilled workforce for maintaining zero-emission cars will need to grow as many people move away from petrol and diesel engines. The Department for Business, Energy & Industrial Strategy estimates that electricity demand will double by 2050 as a result of many different elements, of which one contributor is electric vehicles. Investments will also be needed in the transmission and distribution networks to ensure they are upgraded to cope with demand from electric vehicles and other demand sources. The Department estimates this will translate to a 2% increase in energy bills by 2030. There are significant issues that government will need to consider as part of the transition, for example the lost taxes from petrol and diesel sales, the impact on insurance regulations about charging vehicles indoors, and how other types of vehicles will be decarbonised. Recommendation: The Departments for Transport and for Business, Energy & Industrial Strategy need to work with other departments to consider the practical implications of the transition to zero-emission cars. They should set out in their plan how they are going to manage the wider societal impacts of phasing out new diesel and petrol cars, for example, retraining the UK workforce, the impact on power generation and transmission, and implications for the UK tax take. 8 Low emission cars 1 Plans for zero-emission cars and progress
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Government response AI summary
The government agrees with the recommendation and outlines ongoing actions for skills training (IMI, Green Jobs Taskforce) and electricity grid preparation (Energy White Paper, DNO business plans). It acknowledges tax implications but clarifies the DfT's 2035 Delivery Plan will not cover this.
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HM Treasury
18
Recommendation
First Report - Low emission cars
Accepted in Part
We questioned the Departments about the overall environmental and social impacts of the production and use of electric cars and whether they had undertaken analysis of the full lifecycle impacts of these vehicles, including production and disposal. The Department for Transport informed us that it has looked at the lifecycle …
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We questioned the Departments about the overall environmental and social impacts of the production and use of electric cars and whether they had undertaken analysis of the full lifecycle impacts of these vehicles, including production and disposal. The Department for Transport informed us that it has looked at the lifecycle emissions associated with electric vehicles, including reviewing global studies, and found that they are cleaner than internal combustion engines, although they cannot mitigate all emissions.41 The Department estimates that electric vehicles are between 30% and 40% lower in carbon emissions in their lifetime than internal combustion engine cars. It stated that electric cars also produce fewer particulates in the air than internal combustion engines, as these are non-existent from the tailpipe and fewer come from braking as the engines are regenerating the battery during this time.42 The Departments for Transport and for Business, Energy & Industrial Strategy wrote to us and quoted that a study for the European Commission from September 2020, found a typical new battery electric vehicle, operated in the UK, is considered to have about 35% of the lifetime greenhouse gas emissions of an equivalent petrol vehicle, and 41% of an equivalent diesel vehicle.43
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Government response AI summary
The government agrees to encourage industry to maintain environmental and social standards, setting a Winter 2022 implementation date and detailing existing efforts, but will not unilaterally set new standards.
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HM Treasury
19
Conclusion
First Report - Low emission cars
Accepted in Part
The proportion of emissions is greater in the manufacturing phase than during the on- the-road phase for electric cars, which means the geographical location of manufacturing is an important factor.44 The Department for Transport believed that car manufacturers are “very cognisant” of the location of car assembly as this can …
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The proportion of emissions is greater in the manufacturing phase than during the on- the-road phase for electric cars, which means the geographical location of manufacturing is an important factor.44 The Department for Transport believed that car manufacturers are “very cognisant” of the location of car assembly as this can affect the overall carbon impact, with some manufacturers using renewable energy to mitigate this, for example Tesla with solar panels in Nevada, or BMW sourcing 100% renewables for its i3 plant.45 The Department pointed to the fact that producing a car in a country with a decarbonised energy grid would be better than a coal-generated grid.46
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Government response AI summary
The government acknowledges the committee's concern about environmental standards in manufacturing supply chains. It commits to encouraging responsible sourcing and supply chain standards through various international initiatives but explicitly states it will not unilaterally set standards.
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HM Treasury