CIHT calls for the rollout of electric vehicles to consider social, economic and spatial inequalities and support those who cannot afford them.
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By Matilda Fisher, CIHT Policy Advisor
Last week (27 November), Lisa Brankin, chair and managing director of Ford UK told BBC Radio 4’s Today programme a lack of demand for zero emission vehicles means that the government mandate to produce and sell more EVs ‘just doesn't work’. Ford previously announced that it will cut 800 jobs in the UK over the next three years, partly due to the Government’s zero emission targets.
This echoes views from Stellantis, owner of Vauxhall, which has announced the closure of its van-making factory in Luton, threatening about 1,100 jobs. Nissan have also spoken out against the regulations, claiming that they ‘undermine the business case for manufacturing cars in the UK’.
Government rules maintain that zero emission vehicles must make up 22% of a company's car sales this year. The mandate sets minimum annual targets, which increase each year, ultimately building to a complete phase out of new petrol and diesel cars and vans by 2035. In their manifesto, Labour pledged to restore the original phase-out date of 2030.
Flexibilities within the rules allow manufacturers that are unable to meet these targets to buy ‘credits’ from those that can, such as Tesla and Byd, that only manufacture electric models.
The Government plans to launch a consultation on the targets but remains ‘absolutely committed’ to the 2030 deadline according to Business Secretary Jonathan Reynolds, who reaffirmed the Government’s pledge during a speech to the Society of Motor Manufacturers and Traders (SMMT) on 26 November 2024.
Sales of electric vehicles are increasing. The BBC report that, in 2020, there were 10 million electric vehicles on the road, by 2023 this had increased to 45 million.
The manufacturing industry maintains that this is largely due to unsustainable discounting, with standard high costs rendering zero emission vehicles out of reach to many people.
The BBC report that recent industry sales figures showed that the percentage of electric car registrations is skewed by company car purchases, which benefit from generous tax breaks.
This debate demonstrates the importance of prioritising fairness and justice in all efforts to decarbonise transport. While the changes needed to decarbonise transport and our entire economy will affect everyone, the impacts on people will be different.
When setting a policy to decarbonise mobility there is an implicit assumption that everyone is starting off from the same position.
As outlined in our recently published policy brief, Ensuring a Just Transition to Net Zero Transport:
Decarbonisation policies and interventions do not land on society on a level playing field. Instead, they interact with a complex network of existing inequalities.
A just transition to a decarbonised transport system means to ensure that benefits (and costs) are shared fairly and reasonably among people while supporting those who are in a vulnerable position or could be due to the transition to a decarbonised transport system.
CIHT calls for the provision of subsidies to assist people unable to purchase electric vehicles due to economic, social and personal circumstances. It is likewise essential that the roll out of EV charging infrastructure covers rural areas to address geographic transport inequalities.
To find out more about how the uptake of EVs impacts people in different ways and the potential mitigations that could, read the full brief here.
>>> Read the full policy brief hereFor more information about the policy brief, please contact the CIHT Policy and Technical Team e: technical@ciht.org.uk
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