U.K. Launching Ambitious Green-Vehicle Initiative

The Society of Motor Manufacturers and Traders says the future of the U.K. as a leader in the development of green vehicles has been given a boost as the government announces it will spend £500 million ($841.8 million) to boost the ultra-low-emissions vehicle industry and help drivers afford and feel confident about using electric cars.

Over the next five years the Office of Low Emission Vehicles will spend £200 million ($336.7 million) for the continuation of the plug-in-vehicle subsidy, a government contribution of up to £5,000 ($8,418) toward the cost of qualifying, new ultra-low-emission vehicles.

There also is £30 million ($50.5 million) to assist the purchase of other vehicles; £100 million ($168.3 million) for R&D projects; £20 million ($33.7 million) for taxi infrastructure and incentives; £30 million for buses; £35 million ($58.9 million) for a new city scheme; £32 million ($53.8 million) on infrastructure, including a rapid-charging network; and £4 million ($6.7 million) for a gas-refueling network for heavy-goods vehicles.

Full details of each program will be published in the fall with the government saying some of the schemes will open for applications shortly thereafter.

SMMT CEO Mike Hawes says the package will help the U.K. lead the global shift to low- and ultra-low-carbon vehicles and technologies and provides strategic opportunities for growth and jobs across the region’s automotive industry.

“The move towards a low-carbon-vehicle future must be built around the three pillars of consumer incentives, strategically focused infrastructure and increased leverage for R&D support,” Hawes says in a statement.

“We therefore welcome this announcement which reflects that balanced approach but, significantly, seek to incentivize technical developments in all segments of road transport, not just passenger cars.”

Hawes says the funding package will help secure additional private-sector investment, “but more needs to be done to support academic research in this area – as well as developing the skills that will be essential if the U.K. is to become a global leader in ultra-low-emission technologies.”

Announcing the package, Deputy Prime Minister Nick Clegg says the spending between 2015 and 2020 will create jobs, reduce emissions and set the agenda for the industry, for towns and cities, and for motorists, so the U.K. remains at the forefront of green technology.

Local areas coming up with the most ambitious plans can win a share of £35 million to make the leap to becoming ultra-low.

“Winning cities could, for example, incentivize drivers of green cars by letting them use bus lanes or allowing them to park for free,” Clegg says in a statement.

The U.K. has the potential to emerge as a world leader in the development, design and manufacture of green vehicles, he says.

“Owning an electric car is no longer a dream or an inconvenience,” Clegg says. “Manufacturers are turning to this new technology to help motorists make their everyday journeys green and clean.

“This major investment is there to make driving an electric car affordable, convenient and free from anxiety about the battery running out. But it’s also about creating a culture change in our towns and cities so that driving a greener vehicle is a no-brainer for most drivers.”

BMW U.K. Managing Director Tim Abbott says the government’s commitment to supporting the transition to lower-emissions vehicles comes at a crucial phase in the development of the EV car market.

“The government’s funding commitment provides certainty that the U.K. is serious about embracing these new technologies and complements the very substantial investments being made by industry to introduce innovative lower-emission technologies that are not only exciting for customers but also good for the environment,” Abbott says in a statement.

The Freight Transport Assn. says it is pleased the freight sector is included in the initiative.

“It is good to see that the freight sector has been recognized within the funding package allocation and that there is acknowledgment by government that heavy-goods vehicles have as many challenges as cars in reducing emissions,” Christopher Snelling, head of urban logistics for the association, says in a statement.

“We anticipate that the funding package will contribute to increasing the uptake of gas and biomethane HGVs, as the current lack of public refueling infrastructure is one of the major factors preventing the market from taking off.”