Opportunity for new government to support transition to zero-emission vehicles

With the election looming and the green agenda a significant factor for the electorate and business alike, Jonathan Walker, Head of Infrastructure Policy at business group Logistics UK discusses how the next government can best support the logistics industry's transition to zero emission vehicles.

The logistics sector is already embracing the decarbonisation agenda and is committed to playing its part to help the UK achieve net zero through a fair transition to a green economy. However, the sector needs a greater say on how best to achieve this in a fair and pragmatic way. The decarbonisation of the logistics sector must be underpinned by an agreed and co-created logistics roadmap to net zero, as well as a phase-out of fossil fuels that is based on the availability of technology, infrastructure investment, regulatory reform and tax incentives.

With net zero deadlines approaching, there is a growing risk that the energy infrastructure needed will not be delivered at the pace the sector requires if the supply chain is to be maintained. This is especially true of public sector operators that have more stringent deadlines. Public charging is not being delivered with logistics in mind and zero tailpipe emission HGVs remain unproven for long-distance operations. There is also no agreed plan for the role low carbon fuels will play in the transition, despite being able to reduce emissions by up to 80% and provide a green solution for the many internal combustion engine vehicles that will be in use for decades to come.

The new government can also incentivise business investment in decarbonisation: one practical step that we have been calling for is full expensing for capital investment to be expanded to cover leased and hired vehicles, and fees paid to energy network operators to deliver the asset upgrades necessary. Industry is keen for closer working relationships with government and these types of incentives are exactly what are needed to back the sector in its continued efforts to achieve the nation’s net-zero targets.