How Will Emissions Reduction Targets Affect Drivers?
The Government plans to cut carbon dioxide (CO2) emissions by 68 per cent by 2030 and become carbon neutral by 2050.
To achieve their ambitious targets, the government has brought forward the banning of sales of new petrol and diesel cars from 2040 to 2030.
According to the Climate Change Committee (CCC), to meet these targets, 46% of all cars on the road must be EVs by 2030.
There are currently around 200,000 EVs and 35 million conventionally powered vehicles registered in the UK. In order to meet targets, registration of EV’s must rise to 16.1 million EVs must by 2030. Currently, around two million new vehicles are registered every year, this means every new car registered between 2021 and 2030 has to be electric.
What does this mean for both commercial fleets and regular motorists?
What needs to happen for the mass adoption to occur?
Financial Incentives
Research by CEBR economists proves that ‘access to an electric vehicle is a pipe dream for a third of the population’
This the equivalent of ten million households which means ordinary families will struggle to finance the switch from petrol and diesel cars.
Entry-level electric vehicles are around £5,000 more expensive than equivalent fuel models. Currently, one of the cheapest leased electric vehicles – the £170-a-month Skoda Citigo.
To financially incentivise the purchase of EVs, the government has introduced two grants. With the plug-in grant, you can get a discount on the price of brand new low-emission vehicles.
You do not need to do anything if you want to buy one of these vehicles – the dealer will include the value of the grant in the vehicle’s price. The maximum grant available for cars is £3,000.
The other major consideration is the whole-life cost and in this respect, EVs have the advantage. Despite the higher expense of the initial outlay, fuel, maintenance and taxes are considerably cheaper.
For fleets there are many financial incentives for companies who are seeking to electrify their fleets:
- generous BIK tax advantages for your company car drivers – 1% in 2021-2022
- reduced class 1a National Insurance contributions
- reduced Total Cost of Ownership (TCO)
- Government Grants for charging units at business premises
- No Vehicle Excise Duty for zero-emissions cars
- exemption from congestion zone charges which could save your business up to £2990 a year
- cheaper parking
- Reduced business fuel costs: from as little as 3p per mile
Infrastructure
Approximately 2.8million charging points are needed to accommodate the needs of 16.1 million electric vehicle users.
At the moment there are nearly 36000 charging points across the UK in over 13000 locations. In 2019, that number increased by 10,000, which means another 2.4million by 2030 are required.
To help combat this requirement, there is the Electric Vehicle Homecharge Scheme (EVHS). This provides grant funding of up to 75% towards the cost of installing electric vehicle charge points at domestic properties across the UK.
Manufacture
Mass EV uptake ironically has issues with the environmental cost of vehicle production.
Scientists have previously warned of supply chain issues relating to materials such as lithium and cobalt that are vital in battery production.
During the manufacturing process steel smelting, paint production, factory power, and component shipping – also generate emissions. An estimate says that the production of a battery for one electric car requires mining, moving and processing around 225 tonnes of material. The evolution of battery production is a key area which drives down prices and carbon emissions. Creating effective sustainable methods of recycling batteries is becoming a central concern.
A recent report from Polestar shows that while EVs are more polluting to manufacture than petrol and diesel cars, they are more environmentally friendly over their lifetime because of lower emissions while they are being used.
Comment
However fervent the resistance is by some, the shift to EVs is happening. The change will be painful for some and there may be unexpected issues along the way. But the science behind the move is undeniable.
At Cambrian, we want to be an active contributor to making the world a healthier place for future generations by helping businesses transition their fleets to using electric vehicles.
Our Shell Electric Vehicle Card offers access to 2000 charge points in the UK, 800 of which are rapid charging points. The card enables you to use charging points with 16 partner networks and growing thanks to New Motions interoperability. You can also access 3800 conventional fuel sites. Shell Recharge is powered by 100% renewable energy. With this card, you can also benefit from the features of other Shell cards such as excellent service station facilities and collecting Shell GO+ points.
Useful Links
To learn about our Shell EV card go to https://www.cambriancards.com/shell-electric-vehicle-card/
To find out more about EV grants go to https://www.gov.uk/plug-in-car-van-grants