Transport Decarbonisation Plan

Alan Brown Excerpts

Wednesday 16th June 2021 Westminster Hall

[Felicity Buchan (Kensington) (Con)]

I beg to move,

That this House has considered the transport decarbonisation plan.

It is a pleasure to serve under your chairmanship, Mr Robertson, even if only for a few minutes. There is no question but that the UK has been an international leader in combating climate change, and I am proud of that record. Since 1990, we have decarbonised at the fastest rate of any G20 country, and of course we were the first of the major countries to legislate for net zero by 2050. In December 2020, we went even further and said that we would get to a 68% reduction by 2030. That is an ambitious target.

To get to that target, there is no question that we need a radical and comprehensive transport decarbonisation plan, because transport is the biggest emitter of greenhouse gases in the UK and currently accounts for approximately 30% of total emissions. As a percentage of emissions, if we leave out the fluctuations because of coronavirus, it is going up, and is scheduled to go up further by 2035. Transport is therefore key to meeting our objectives to be net zero by 2050 and to achieve our intermediate objective by 2030.

[Caroline Nokes in the Chair]

Some 55% of transport emissions come from cars, and almost two thirds of total emissions come from cars and light vans, so I will focus my remarks on electric vehicles, but there is no question but that we need a comprehensive strategy across buses, rail, freight and aviation, and we need clear targets. It is easy to say, “Net zero by 2050, and down 68% by 2030”, but we need a clear and firm plan as to how we will get there, and we need to constantly measure our progress against that plan.

Apart from the sectors that I have mentioned, we also need a modal shift towards more walking and cycling, which will be important for the health of the nation and to meet our transport decarbonisation goals.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

As the hon. Lady rightly says, targets in themselves are no use; we need plans. I assume she agrees that any plans need to be backed by policies and proper funding to show us a pathway to net zero.

[Felicity Buchan]

Yes, we need policies, and, when money needs to be made available, it should be. I personally think that there are private sector solutions, but I am glad to see that with electric vehicles, which I will go on to talk about, the Government are making available £2.8 billion.

Electric vehicles will be critical because, as I said, cars account for 55% of emissions. I am glad that the Government have brought forward the date to ban the sale of new petrol and diesel vehicles to 2030. That is a huge achievement. The investment of £2.8 billion in electric vehicle technology, infrastructure and plug-in grants is hugely important. I am lucky to represent a borough, Kensington and Chelsea, that is very focused on electric vehicles. We have the highest number of electric vehicles per capita of any London borough, and probably the highest number nationally.

London is very good in not having much car usage. Only 27% of journeys are by car. Nationally, it is 68%. Clearly, rural areas will be more dependent on cars than cities such as London, but electric vehicles are important to my constituency. I hosted a seminar a few weeks ago in my constituency on the roll-out of electric vehicles. It was great to see so many of the major south Kensington institutions participating. I had Professor Richard Herrington, the Natural History Museum’s head of earth sciences, which is very important in electric vehicle batteries. I had Dr Billy Wu from Imperial College, who is one of the leaders in battery research, and Dr Rachel Boon from the Science Museum. We had a tremendous attendance from Kensington residents, and it is great to see that they are so focused on electric vehicles.

However, it was striking that the residents’ questions were repeatedly about having confidence that the electric charging infrastructure would work. There was a lot of concern about range anxiety. In my constituency, there is not much off-street parking; it is all on-street parking by the pavement. That clearly leads to challenges for electric vehicle charging. Of course, this is anecdotal, but I took away a huge willingness to embrace electric vehicle technology, but real concerns about the practicalities. If we are going to get there by 2030, we need to resolve these practicalities as quickly as possible.

I essentially have five key asks on electric vehicles. First, we need a comprehensive strategic network of electric vehicle charging points. I see this almost like the electricity national grid. I am a great free market capitalist, but I do not think in this instance that we can just leave it to the free market. We are not in the mid-19th century building railway lines randomly all over the place. We need a comprehensive network that gives people confidence, because they will not want to give up their cars that they have confidence in if they do not have confidence in the electric vehicle charging network. It needs to be Government led and top-down, as opposed to bottom-up.

Leading on from that, it is important that we focus on the customer experience of electric vehicle charging. I too often hear stories about the unreliability of chargers and the lack of interoperability between different charging points. We and the Government need to work on these issues, because confidence is critical.

I would also like the Government to mandate that all new houses, buildings and office blocks have electric vehicle charging points. I know the Government have consulted on this, but it should be standard. In the same way as, when you build a house you put in electric sockets, you should put in an electric charging point.

Moving on from the consumer element, it will be important to have more battery capacity in the UK. I feel strongly that we need more recycling of battery capacity and capability in the UK. In my discussions with Professor Herrington, there is no question that we need to extract very precious and rare metals to make electric batteries and these have to be recycled. We cannot just use up our stock of lithium and cobalt.

Finally, I would ask the Government to consider a zero emission mandate. This has worked very well in California. For those who do not know how that works, it requires manufacturers of cars to produce an increasing percentage of electric cars as part of their output. If they do not meet those percentage sales targets, they need to buy carbon offsets. I would like the Government to consider that. It has worked well in California and the increased supply of electric vehicles could achieve a number of ends.

First, while the price of electric vehicles over their lifetime is now equal to petrol and diesel cars, because the operating costs are lower, the up-front cost is still high. We are expecting price parity in 2023, but a zero emission mandate is a way to increase supply and accelerate price parity.

The second reason it could help is that I understand from leasing experts that it continues to be more expensive to lease an electric car, because leasing models look at the future value of the car in two years’ or five years’ time. As there is no developed second-hand market for electric vehicles, they put a discount on to that value. The more supply we can get, the better the secondary market for electric vehicles.

I thank all Members for participating in the debate. I am looking forward to hearing the Minister’s reply. There is no question but that the transport sector is a big challenge when it comes to emissions, as the biggest emitter in the UK at the moment, but that means that it also offers the biggest opportunity.

--- Later in debate ---

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

It is a pleasure to serve under your chairmanship, Ms Nokes. I congratulate the hon. Member for Kensington (Felicity Buchan) on bringing forward the debate. She is maybe a bit hasty in thanking Members for their contributions before she has heard me speak—she should wait with bated breath.

I was talking about the debate with my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands) last night. When we saw the debate title, we were hoping that the hon. Member for Kensington had an inside track and that the transport decarbonisation plan was going to be launched just in time for the debate. Alas, that was not to be. In many ways, the debate could be called “the lack of a transport decarbonisation plan”.

As the hon. Member for Kensington said, the UK Government are hosting COP26 and claim to be leading the way and talk of a green recovery. The reality is there are still no coherent interlinked strategies and policies to achieve net zero. Given that the transport sector is the biggest contributor of greenhouse gas, the lack of a transport decarbonisation plan is basically a dereliction of duty. Why are the UK Government so behind in the publication of the plan, which was initially promised last year? Given that transport decarbonisation is so interlinked with energy policy, which is itself interlinked with the decarbonisation of our fossil fuel heating systems, it is imperative that these policies are complementary to each other and are interlinked. They all go hand in hand.

When we focus on transport, it should of course come as no surprise that the Scottish Government lead the way, being the first to include international shipping and aviation emissions within their overall net zero target, The Scottish Government have published their rail decarbonisation strategy with an end date of 2035. Meanwhile, Network Rail have only published an interim programme with a business case for a 2050 date. Will the Minister confirm that they will get a grip of the final programme, with the suitable ambition that is needed to achieve net zero?

The Scottish Government’s rail decarbonisation plan means increased electrification and the introduction of battery or hydrogen-powered trains. Hydrogen is clearly a plan for the UK Government, and I welcome the ongoing trials of hydrogen-powered trains. However, we are still awaiting a hydrogen strategy, which will be critical if we are going to rely on hydrogen-powered trains. The Government’s 5 GW hydrogen target is, frankly, too weak. The Scottish Government have already got their own 5 GW target and hydrogen strategy in place, so will the UK Government’s eventual strategy be more ambitious? Will they set a target for green hydrogen production? Will the Minister explain how extensive a role hydrogen will play for trains in the decarbonisation process? Will the UK Government address the lack of electrification of railways, which is partly due to the previous Transport Secretary’s obsession with hybrid diesel trains?

Hydrogen is an obvious solution for heavy goods vehicles, but it is part of the mix for buses too. Again, that underlines the need for a hydrogen production strategy. Blue hydrogen with carbon capture and storage is an interim step on the way to net zero, so when will the Acorn project at Peterhead be given the go-ahead?

Aberdeen has led the way on hydrogen-powered buses, with the introduction of 15 of the world’s first hydrogen double-decker buses. The Scottish Government have invested more than £3 million in that project, but £8.3 million also came from the EU, so what will the replacement funding be for those types of schemes? The Scottish Government will have phased out the majority of fossil fuel buses by 2023, thanks to investment of £120 million in zero emission buses. More importantly, those buses are being manufactured by Alexander Dennis Ltd, making the investment circular for the economy. That is what the green recovery is all about: combining manufacturing with the net zero transition. What are the updates on the manufacturing strategy from the UK Government’s perspective in that regard?

On flying, decarbonising the aviation sector means that some radical thoughts are required. That will be sensitive, given the fragility of aviation post covid, but a proper green recovery also means supporting the aviation sector. Although talk of air passenger duty might be welcomed in some quarters, that is too blunt an instrument. What discussions has the Minister had with the Treasury on that? What does she think of the call from the citizen’s assembly to have a frequent-flyer surcharge—a policy that would affect only those who can afford to pay for frequent flying, while allowing others still to fly? Any moneys raised from such a policy could be reinvested into the decarbonisation of the aviation sector.

There are also opportunities for the production of sustainable aviation fuels, so when will the UK Government finally provide the support needed to pump-prime the private investment required to create a number of sustainable aviation fuel production plants? It makes no sense that aviation gasoline is duty-free, when domestic petrol for drivers is taxed to the hilt. That disparity should have been resolved years ago, but it will need to be addressed to incentivise decarbonisation and the switch to other aviation fuels.

On domestic electric vehicles, we heard a lot from the hon. Member for Kensington. I agree with the five goals that she set out at the end of her speech. We have heard a lot of talk about being world leading, without that being delivered. I welcome the fact that the Government are bringing forward the phase-out date for new diesel and petrol cars to 2030, but there need to be joined-up policies, properly funded, to match that ambition.

According to the Society of Motor Manufacturers and Traders, the UK will need to spend at least £16.7 billion to get its public charging network ready for the mass EV market. In March, it estimated that 700 new electric charging points need to be installed every single day until 2030 to give the right market coverage for the 2030 implementation date. At the moment, installations average 42 per day, so what will the Minister do to resolve that? Will the decarbonisation plan tackle that disparity?

It will be no surprise that Scotland leads the way on the roll-out of charge points in the UK. It has 40 public charge points per 100,000 people, compared with fewer than 30 in England and fewer than 20 in Wales and Northern Ireland. That is, of course, because the Scottish Government invested directly in that. Scotland also has the shortest average distance to travel to reach a public charge point. Will the UK Government up their game and tackle that in the decarbonisation plan, which will hopefully mean more Barnett consequentials for Scotland?

Many motor manufacturers are already starting to phase out fossil fuel cars. However, the transport decarbonisation plan will need to allow for extra interventions. What assessment has the Minister made of Climate Assembly UK’s recommendations, such as a car scrappage scheme, which I have long called for, and larger grants to assist businesses and people in purchasing electric vehicles? Will the UK Government copy the Scottish Government by providing interest-free loans for individuals and businesses to purchase electric vehicles? The Scottish Government have now extended that to the second-hand market to stimulate it as well.

Another key point regarding energy as we move towards the electrification of domestic travel is grid charging. Scotland faces the highest grid charges in the whole of Europe, so if we are to have joined-up thinking for electrification of the domestic vehicle market, that means overhauling the grid charging system to allow renewables to be developed at the best locations, incorporating investment in storage such as pumped hydro storage and moving away from the nuclear obsession.

The future can be bright and green and include a revitalised manufacturing sector, but we need to see actions, not words, and clearly we need much more than a transport decarbonisation plan. We need cross-Government departmental co-ordination and leadership from the very top. Those are matters that, frankly, at the moment, are sadly lacking, but the transport decarbonisation plan would be a first step.

--- Later in debate ---

[Rachel Maclean]

Forgive me; will the hon. Gentleman allow me to complete my speech, because I am sure I am going to answer his questions in it? I have a lot of points to cover, but I will take interventions later if he is still not satisfied.

We have committed £2 billion to active travel over five years. That is the largest amount of funding ever committed to cycling and walking by any Government.

Let me turn to electric vehicles, which were the focus of the speech by my hon. Friend the Member for Kensington. The key to decarbonising transport will be to roll out cleaner modes of travel that are affordable and accessible to all. I am delighted to see all the hard work she is doing in her constituency. It is by local engagement that Members of Parliament can play a vital role in ensuring that their local authorities are engaged in this. Many of these initiatives are delivered through local government funding.

I note that some local authority areas are not taking advantage of our on-street residential charge point scheme. I encourage any Member of Parliament to come to me, so I can provide them with an update about if their local authority is engaging in this, because that is how we are going to get charging points rolled out to people who do not have off-street parking. We need to move further and faster, and I fully agree with everybody who has posed that challenge to the Government.

We have an ambitious phase-out date to end the sale of all petrol and diesel cars by 2030. That is the most ambitious date of any country in the world. All new cars and vans must be zero emission at the tailpipe by 2030. We will be the fastest country to decarbonise cars and vans. There is no sign of buyer’s remorse.

[Alan Brown]

On that ambition of before 2030, does the Minister accept that that means that energy policy has to align with that to get the electrification? That means that Ofgem must be mandated to deliver net zero and it means an overhaul of how energy is delivered. Is she discussing that with other Ministers? Does the transport decarbonisation plan interlink on that basis?

[Rachel Maclean]

I am absolutely discussing that with fellow Ministers. The Department for Business, Energy and Industrial Strategy will be coming forward shortly with its net zero strategy, which will answer many of those issues about the electricity network.

Over 90% of EV drivers say they will not go back to petrol or diesel. I am one of them because I drive an electric car, including on bank holidays, so I experience these issues first hand. We are determined to make it as easy to charge up an electric vehicle as it currently is to fill a tank with petrol or diesel. The private sector has already installed 24,000 public charging devices, but the process is changing and accelerating all the time. In two years’ time every motorway service station will have at least six high-powered chargers, so that people can charge up in the time it takes to have a coffee.

To underpin our ambitious phase-out dates and to help achieve them, in November we committed to developing three key policy documents over the course of 2021. Those policy documents will specifically answer many of the questions that hon. Members have rightly posed to me. The first is a delivery plan that will set out key Government commitments, funding and milestones. That is for the 2030 and 2035 phase-out dates. It will deal with the question whether we will have a zero emission vehicle mandate. We are having that discussion inside Government at the moment.

We will set out an infrastructure strategy. That will set out the vision and action plan for the charging infrastructure roll-out that is needed to achieve our ambitious phase-out date successfully, and to accelerate the transition to a zero emission fleet. As part of this strategy we are working with local authorities, charge point operators and other stakeholders to ensure that our future charging infrastructure is practical, accessible, reliable and achievable, alongside outlining all the key roles and responsibilities for all actors in the EV charging sectors. It is clear that we need more charge points everywhere and this Government will set out how that will take place.

The Green Paper on our UK future CO₂ emissions regulatory framework, now we are no longer a member of the European Union, will set out how we will phase out petrol and diesel cars and vans, and support those interim carbon budgets, including consulting on which vehicles exactly can be sold between 2030 and 2035.

Let me go through the key points made by my hon. Friend the Member for Kensington. On her first priority, the need to combat range anxiety, she is absolutely right and every Member has mentioned that. We need to increase not only the reality but the perception of the adequacy of the infrastructure for electric vehicles. I keep reminding people that in England they are never more than 25 miles away from the nearest charge point and we have committed, and are already investing, £1.3 billion to accelerate the roll-out of charging infrastructure in rural and urban areas across the UK.

The charge point market has evolved over the past decade. Like my hon. Friend, I am a free-market capitalist, but of course Government has a role to play, hand in hand with the private sector, which is stepping up in an incredibly impressive way. They have a growing role in charge point funding, with areas such as home charging showing signs of maturity. We need to keep working hand in hand with the private sector, so we have committed to invest £950 million in future-proofing grid capacity along the strategic road network, to prepare for 100% uptake of zero emission cars and vans. We expect to increase the number of high-powered chargers across the network by 2035 to 6,000.

We also have a £90 million local EV infrastructure fund that will support large on-street charging schemes and potentially local rapid charging hub schemes in England, as well as the £20 million already referred to, which is the on-street residential charging scheme. We are working closely with stakeholders to inform the design and delivery of the fund. We aim to launch it in spring next year. We must continue, however, as a Government—that is our responsibility—to monitor the market.