Net Zero Targets and Decarbonising Transport

Jessica Morden Excerpts

Tuesday 4th February 2020 Westminster Hall

[Damian Hinds]

I know the hon. Lady’s part of the world well, having stood for Parliament there in the mid-2000s. Buses are an important part of the overall mix, and for Greater Manchester, although I will let the Minister deal with her point in his own way.

On electric vehicles, there is a wide range of Government support and good cross-industry co-operation. There is a subsidy programme for vehicles, home charging points and workplace charging, and there are grants to local authorities for a number of different purposes.

[Jessica Morden (Newport East) (Lab)]

Electric vehicles need electrical steel, and the only electrical steel maker in the UK—the Orb works in Newport, which was owned by Tata—was mothballed just before Christmas. Does the right hon. Member agree that supporting our steel industry at this crucial time will be vital for an end-to-end supply chain in this country?

[Damian Hinds]

Steel is of great importance, and the hon. Lady knows better than most people how important it is to our industrial base. It is also important to the development of many green technologies. As she knows, steel has its own challenges. It is a very energy-intensive sector; in time, hydrogen technologies and others might help in that regard, and we need to ensure that we maximise our efforts towards them.

We now have over 22,000 public charging points for electric vehicles. There is a particular concentration in London, but also in places such as Dundee. We have 125 rapid charge points per 100 km of highway, compared with the EU average of 25. In 2018, the UK was the second-largest market in Europe for ultra low emission cars and the fourth-largest market for electric cars, and one fifth of battery electric cars sold in Europe had been made here in the UK. For actual sales as a percentage of the total car market, we were above France and Germany but, as colleagues will know, we were below some of the very high-percentage countries, particularly the Scandinavian nations and others such as the Netherlands. It is the growth curve—the year-on-year growth, albeit from a small base—that is particularly encouraging.

Alongside changes in electric vehicle technology, a lot of other relevant changes are happening in society and the economy. We have been changing the way we shop, and how and where we work, and those things potentially have material implications for the number, type and length of people’s journeys. The product itself—the performance of cars—has been improving. At the same time, the charging technology has been evolving with things such as induction pads. We have the development of autonomous vehicle technology, which is likely to be particularly significant in the future for heavy goods vehicles.

I suggest that the most important change of all is one that has already started: a change in how we buy our own transportation. “Mobility as a service” includes everything from Boris bikes to car clubs. In the car market, it includes the growth of personal contract purchase plans and, significantly, personal contract hire plans. Why do I say that is so significant? Is it not just a way of financing a vehicle? It is significant because it changes the way that people think about the cost of a vehicle. Historically, people would compare the sticker price of a car separately from the monthly running cost, but with different types of paying for mobility, the formula has changed significantly.