Question to the Department for Transport:

To ask the Secretary of State for Transport, what estimate she has made of the costs to motorists arising from (a) emissions compliance costs, (b) electric vehicle transition policies and (c) other net zero transport policies.

The cost-benefit analysis for the Zero Emission Vehicle (ZEV) Mandate and CO2 regulations estimated the net value to society of the regulations. This was estimated at a benefit of £39 billion (2021 prices) over the full appraisal period, between 2021 and 2071.

This includes all benefits and costs and covers the transition of cars up to 80% of all new cars to ZEV and 70% of new vans to ZEV from 2030 (and on an ongoing basis). Using figures reported across the cost benefit analysis (CBA) to estimate the net impact, households and business are estimated to save roughly £14 billion (2021 prices) from 2021 to 2071, accounting for increased upfront vehicle cost (£27 billion) and infrastructure costs (£13 billion), which is more than offset by lower fuel (£39 billion) and maintenance costs (£15 billion).

The CBA can be found here: https://assets.publishing.service.gov.uk/media/6554be55544aea000dfb2d59/zev-mandate-consultation-final-cost-benefit-analysis.pdf.

Regarding other road transport policies, the Department for Transport (DfT) estimates the cost of supplying low carbon fuels through the Renewable Transport Fuel Obligation (RTFO) each year. The latest estimate is c. £2 billion for 2023. This supported the delivery of c. 4 billion litres of low carbon fuels and saved c. 8 million tonnes of CO2e emissions. The latest RTFO costs and scheme outcomes can be found here: https://www.gov.uk/government/publications/renewable-transport-fuel-obligation-annual-report-2023.

The 2024 annual report is expected to be published shortly.