Lord Mandelson and Geoff Hoon MP have announced a government vision for low carbon transport. A policy paper outlines planned government incentives for the uptake of electric vehicles, as well as commitments for vehicle infrastructure and funding for further research and development. From the already announced £250 million for ultra-low carbon vehicles, government will provide a consumer subsidy of £2,000 to £5,000, which aims to make electric vehicles a viable and attractive choice for regular motorists. Government will announce further details on the parameters and delivery mechanisms of the scheme later in the year, with a view to having the initiative operational in 2011. Additionally, government announced that a further Technology Strategy Board (TSB) competition under its Innovation Platform will open in June to reinforce the development of the supply chain for electric vehicles. Government will also immediately scale-up TSB’s ultra-low carbon vehicle demonstration competition. £20 million will be invested in the Department for Transport’s Low Carbon Vehicle Public Procurement Programme. Business secretary Peter Mandelson said: “Britain has taken a world lead in setting ambitious targets for carbon reduction. Low carbon vehicles will play a key role in cutting emissions. Government must act now to ensure that the business benefits of this ambition are realised here in the UK. We want the British motor industry to be a leader in the low carbon future, and Government must direct and support this.”
Source: Source: BERR
2. Government implements battery waste regulation
Government has adopted new regulations on the implementation of battery waste. The Waste Batteries and Accumulators Regulations 2009 follow the
Batteries and Accumulators (Placing on the Market) Regulations 2008, which set out requirements for introducing new batteries into the market in September 2008. The new regulations implement a 2006 directive on waste batteries, with government mandating battery producers to join one of many battery compliance schemes to monitor the collection, treatment and recycling of batteries. The new regulations come into force on 5 May 2009. The British Battery Manufacturers Association said that competing compliance schemes would result in “unnecessarily high” costs. The regulations state that a ban on the disposal of waste industrial and automotive batteries by landfill or by incineration will be enforced from 1 January 2010, together with a requirement that producers of industrial and automotive batteries will have to arrange, where necessary, separate collection and recycling of waste industrial batteries, and waste automotive batteries.
3. Conservatives publish green technology Budget proposals
The Conservative Party has published a series of green technology policy proposals ahead of next week’s budget. George Osborne, shadow chancellor, said that the proposals would help bring about a “green technology revolution in Britain”. In its policy paper, “A Green Technology Recovery”, the Conservative Party outlines a series of measures that it claims would provide an extra £30 billion worth of investment in technologies developed and manufactured in Britain. The proposals include: a £6,500 domestic energy efficiency entitlement; funding of at least three carbon capture and storage pilots; a national recharging network for electric vehicles, including introducing incentives for energy companies; providing government loan guarantees to companies investing in green technologies; and creating the world’s first green environmental market for the next generation of British environmental companies. Mr Osborne said the plan, “Would unleash £30 billion of new private sector investment, without adding a penny to the national debt. It would lay the path to a greener future. And it would help build a future economy where we save and invest for tomorrow instead of borrow and spend for today.”
The Retail Motor Industry Federation (RMIF) has published is submission ahead of the 2009 Budget next week. The RMIF warns government on the impact of its revision of vehicle excise duty (VED) on the sale of older vehicles, calling on the chancellor to abolish VED initiatives. The industry body is further calling for a raise in empty property rate relief to £75,000 to £100,000 per year, commenting that the current level of £15,000 only “scratched the surface” in relieving hard hit showrooms and workshops. The RMIF echoes SMMT calls for a scrappage scheme and calls to abandon the proposed first-year rate for road tax from 2010-2011, proposing that government should allow 100% first year capital allowances on all new commercial vehicle purchases. Chairman of the RMIF Paul Williams, said: “Small businesses are the lifeblood of the UK economy and will be critical in bringing the UK out of recession. Therefore, the government must do all it can to help this sector. In view of the economic climate, government should consider lower corporation tax to help businesses to see through the economic slowdown.”
5. 21% fewer new cars purchased on dealer finance in February
The Finance and Leasing Association has published statistics outlining the impact of the recession on motor finance providers for February 2009. The figures show that consumers purchased 21% fewer new cars and 21% fewer used cars with dealer finance in February 2009 compared to 2008 levels. Consumer leasing of new cars fell 36% by value compared to February 2008, with Personal Contract Purchase deals increasing 3%. Geraldine Kilkelly, head of research and chief economist at the FLA, said: “February's motor finance figures give us further evidence of the need for Government support to boost liquidity in the motor finance market. Our discussions with Government on support for all motor finance providers are reaching a critical point. Urgent action is needed to enable finance providers to meet consumer demand that is currently going unmet due to wholesale funding problems.”
6. Environmental group voices concern over biofuels obligation
Friends of the Earth has published research claiming the introduction of biofuels could have doubled the equivalent fossil fuel CO2 emissions. The environmental group suggests that since the introduction of the Renewable Transport Fuel Obligation (RTFO) a year ago, 1.3 million extra tonnes of carbon dioxide could have been emitted through the displacement of food crops and deforestation. The campaign group says that government does not include the emissions caused by such activities in its figures on biofuels, and calls on government to suspend the RTFO.
