EV Strategy: (ECC Committee Report)

Lord Grantchester Excerpts

Wednesday 16th October 2024 Lords Chamber

[Lord Grantchester (Lab)]

I also would like to start my remarks on the progress of the electric vehicle transition by thanking the noble Baroness, Lady Parminter, for chairing the committee on this important inquiry and for introducing the debate today so comprehensively. I also thank all the clerks who help the committee so ably. I declare my interest as serving on the committee and thank the many organisations and people with an interest in the motor industry and climate change for all the submissions I have received.

Needless to say, the report was produced and responded to by the previous Conservative Government. It cannot go unremarked that the rather confused state of the transition away from the internal combustion engine was in no small measure due to mixed messaging and lack of leadership from the Conservative Government. The announcement in September last year to delay the phase-out date for new petrol and diesel vehicles from 2030 to 2035 did immeasurable damage to consumer confidence and demand, adding to the misinformation surrounding EV ownership.

The second-hand market is in disarray. The emphasis on cost without including benefits led to declining private sales over the next quarter. I am pleased to learn that throughout 2024 sales have recovered, reaching 20.8% of new vehicle registrations in September and putting within reach the first ZEV mandate of 22% for 2024, on the pathway towards the phase-out date. Will my noble friend the Minister, replying to this debate, outline the new approach of this new Labour Government? Can he confirm that the phase-out date will be restored to 2030?

In this context, further clarification as soon as possible on the phase-out of hybrid vehicles would also be very helpful to the industry. While hybrids can help consumers move towards EVs, the cost to manufacturers of tooling and dual-system production is considerable. A fresh communications strategy is a key recommendation of the report and a clear opportunity for the new Government to arrest the decline in private sales resulting from misinformation.

The car industry is fluid at present, backing EVs while simultaneously making internal combustion engine vehicles and looking to the development of hydrogen engines—mainly for trucks, construction and agriculture —and hydrogen fuel cells, which also have zero emissions but are still very expensive until there is mass manufacture. BMW and Toyota have just started collaborating on fuel cells. Porsche has just announced new technology to “save the ICE” by patenting a six-stroke petrol engine with reduced emissions.

It is an industry under severe challenge, with many competing developments, especially in the various export markets. Can my noble friend the Minister outline the current position of investments in battery technology and factories? I understand that many plans have been downsized and Northvolt is considered to be in difficulty. The challenges of EV transition resulting from weight issues and recycling still need to be faced.

Misinformation feeds off these negative aspects and brings into sharp focus the other clear recommendations in the committee’s report. The previous Government’s response was similarly unclear in its approach to taking many of the issues forward. A feature of Conservative Governments is often to fiddle with the on/off switch of consumer incentives, prematurely phasing out grants to help bring about price parity between new purchases and existing disparities on costs. I urge my noble friend the Minister to bring forward new approaches to support new technologies and developments that will support the transition to lower transport emissions. Transport remains the UK’s highest-emitting sector.

In addition to the committee’s many recommendations on costs and tax, I mention the possible extension of the delay to introducing vehicle excise duty for electric vehicles. While the forthcoming Budget will signal new approaches for the economy, it remains a challenging time for public expenditure and possible new approaches to road taxation. The committee’s report has made detailed recommendations on the EV charging infrastructure and I would welcome my noble friend the Minister’s response to the many comments other speakers have made.

Many of the several “black holes” in charge points exist in rural areas. I emphasise the need to update and modernise the grid, which crosses over into the energy market and the distribution of energy throughout the UK. There are important developments and costs associated with securing national grid connection and, in this context, the charge points, especially for high-speed recharging. Can my noble friend the Minister give your Lordships’ House any insights from his other responsibilities into the plans ahead? Can he say how the new announcements on carbon capture and storage investments will help capture carbon dioxide in the atmosphere from e-fuels, and help their development?

Finally, I mention the need for an urgent reset of how planning permissions operate for upgrading infrastructure and grid connections. This extends from high-point connection infrastructure to supporting measures that tackle the charge-point divide that exists for those with no access to driveway home recharging.

These are the key initial steps that a reset needs to take to restart the transition from high-polluting ICE vehicles towards achieving the important legal challenge of meeting the net-zero goals by 2050.