The real costs of sustainable transport

17th Sept 2024

How does transport go green without stifling economic growth?

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By Johnny Sharp

“Upfront costs to adapt to new environmental policies, net zero and sustainability are a big hurdle to many SMEs (small and medium enterprises),” says Nathaniel Chin, Technical Manager at engineering consultancy Sweco. “They’re the ones hit hardest by policy changes; for instance, they may have to purchase a fleet of new vehicles.”

This is where financial support for smaller businesses could be crucial, agrees Sweco Technical Team Manager Martin Sellman. “It’s always going to help, particularly those businesses that are operating on a smaller scale,” he says. “But it’s also important to invest in infrastructure, making new technology more available to everyone.”

Chin points out the importance of encouraging the production of low-emission vehicles in the UK, rather than relying on foreign markets. “Not only are you providing new technology and investing in that, you’re upskilling the production line and encouraging behaviour change in the very labour market you’re using,” he reasons.

While it’s easy to put a price on some sustainability policies, the value they offer is harder to quantify, although not impossible.

“Poor air quality, for instance, can be measured in pounds, shillings and pence,” says James Ashton, Transport Planner at BWB Consulting, pointing to “the health impacts on children and on elderly people, and the resulting strain on the NHS”.

Congestion, meanwhile, also means people spend more time in cars and less time travelling by more sustainable – and healthier – forms of transport. Ashton points to “the benefits of a healthier, more motivated workforce, and better delivery times thanks to reduced congestion”.

ton points to “the benefits of a healthier, more motivated workforce, and better delivery times thanks to reduced congestion”.

Image: James Ashton, Transport Planner, BWB Consulting; credit: James Ashton

Image: James Ashton, Transport Planner, BWB Consulting; credit: James Ashton

Stimulating business on a local level

So, what kind of policies can local authorities put in place to promote sustainability while also inspiring businesses to get on board with their plans? 

Ashton offers the example of Nottingham City Council’s parking levy. “This encouraged sustainable transport such as the tram network in the city,” he states. “And [also] towards grants for local businesses to put in things like showers and lockers and stuff like that to promote people not driving into work.”

Congestion charging is another possible option, which has been a long-established strategy in London, but hasn’t yet been fully adopted elsewhere. And although there are perennial problems with parking charges in cities – for instance, local authorities often generate revenue from multi-storeys, but they also are trying to encourage people to come into towns by other means – Ashton believes removing cars from city centres helps business.

“It attracts more pedestrians and more visitors,” he enthuses. “[It] makes them nicer places to be and that attracts people who will spend money there.”

All three experts stress the need for clearer government policies to promote sustainability in the transport sector, though.

“The policies [formerly] covered four key areas: improving air quality, reducing CO2 emissions, reducing congestion, [and] improving people's general wellbeing, whether through safety or more reliable journeys. If the [new] government could put one clear policy statement together that really focuses on those four key areas, then put in place some measures to start delivering on them, then I think we’ll be heading in the right direction,” Ashton explains.

If that happens, Ashton believes other issues will also become less problematic. “The funding was unclear. There were different funding streams such as the Towns Fund, the Levelling Up Fund, the City Region Sustainable Transport Settlements. There were pots of money all over the shop [and] local authorities had to bid to get money. It was time consuming, confusing and difficult. 

“So once the policy background becomes clearer, the funding streams become clearer, people’s understanding of how it’s working becomes clearer and the message from local authorities to business becomes clearer too,” he concludes.

CIHT are launching a ‘Ensuring a Just Transition to Net Zero Transport’ policy brief on 19 September that will look at this and the need to recognise and mitigate against some of the inequalities we may face in decarbonising transport.

Newsletter image: Ultra Low Emission Zone sign; credit: Shutterstock.

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