29/04/2010

Whatgreencar looks at Greener Motoring Political Policies

With only a week to go before the election, and a hung parliament the most likely outcome, WhatGreenCar takes a look at the main parties’ policies for greener motoring.

With 13 years in the driving seat, New Labour has certainly done its bit for green cars with the introduction of CO2-graduated Vehicle Excise Duty (road tax), the reforming of the company car tax back in 2002, and the support of the emerging LPG and early hybrid car market through the now defunct PowerShift programme.

More recently, it successfully managed the Car Scrappage Scheme (which turned out to be greener than many expected), and saved the bacon of theUK motor industry at little cost to the taxpayer (due to the recouping of additional VAT receipts). And, despite the economic downturn, it has stuck to its guns and introduced the new ‘First year’ road tax, which penalises the most polluting cars at the showroom to the tune of £500, and cut road tax onthe lowest emission models.

While Labour certainly hasn’t got it all right (its stance on fuel duty being a particularly sensitive example), it’s safe to say that many of these policies are now taken as standard with little risk that the next government, whatever its colour(s), would undo any of these measures. That said, what are the main parties offering to further support the emerging green car market?

To start with the most recent incumbents, Labour has established a £400 million fund to encourage a mass market in electric and hybrid cars. Pioneering motorists will receive a Plug-In Car grant up to £5,000 to buy an ultra-low carbon car from January 2011, and the party pledge, to install 100,000 electric vehicle charging points by the end of the next Parliament.

Labour has also established a new £30 million Green Bus Fund to introduce 350 new hybrid and electric buses. To put these investments into context, however, Labour also plans to spend £6.2 billion on widening key sections of the M25.

Regarding regulation, being basically a pro-EU party, Labour would continue to work with European partners to further cut average carbon dioxide emissions from new cars to 95g/km by 2020, a 40% reduction on the 130 g/km limit already agreed.

Back at home, however, after having made numerous (environmental and political) assessments of road user charging, the party has backed away from such a radical policy – despite the success of the London Congestion Charge in stimulating the green car market in the capital.

In contrast, the Conservatives are the most technologically focused of the main parties, with significant emphasis on the shift towards electric and plug-in hybrid vehicles.

Unlike Labour, they (correctly) have identified the need for a 'smart (electricity) grid' before an electric vehicle revolution can take place. This will be a "highly interactive network based on a new smart grid that will interact with a smart meter in people’s homes, to manage supply and demand."

With Boris Johnson blazing the electric vehicle trail as London Mayor, the Conservatives seem to have all their eggs in one basket, relying upon the engineering and market success of EV technology and an updated grid.

Many of the current surveys, however, still show some consumer resistance to paying more for a car with limited range. Let’s remember that most EVs cost at least 50% more to buy and few can cover more than 100 miles on one charge.

In the Tory manifesto, less emphasis is given to carbon reduction using existing technologies, investment into public transport, green taxation to encourage low emission options or road charging.

The impression given is that it’s generally ‘business-as-usual’ as far as the motorist is concerned, with the single significant switch from inefficient combustion engines to (clean) electric motors. That said, if they back EVs and get it right they will be heroes, if they get it wrong, we’ll all be back at square one.

Towards the other end of the technology scale are the Liberal Democrats, where the use of less technical approaches is thought to be more effective for a greening of the transport sector. They advocate a significant expansion and improvement of the public transport network; thereby cutting car use but not limiting people’s opportunities to travel.

However, recognising that there will continue to be a need for car travel, the party recommends a mix of measures to green car use. This includes a “zero emissions target for all new cars by 2040” (although this is not substantiated and is way more ambitious than any of the other parties’ targets). This would be enforced by a combination of incentives and penalties, with much tougher restrictions on new cars.

Unlike Labour and the Conservatives, the 'Lib Dems' would also make preparations for the introduction of a national road charging system in a second parliament. They maintain that a road charging system would enable the abolishment of VED (road) tax and reduce fuel duty; resulting in a revenue neutral system designed to benefit those in rural areas with limited alternatives to road travel.

The Green Party would also invest heavily in public transport, the aim being to reduce the demand for private vehicle ownership. It also plans to "make the cost of private cars more effectively mirror their environmental cost to the wider society".

Car tax would be abolished, but be replaced with a new (revenue neutral) graduated vehicle purchasing tax based upon emissions which would penalise over-sized or over-powered vehicles. The aim is to stimulate a shift towards low carbon options at the time that matters most, when a vehicle is purchased new.

The Greens also advocate introducing road charging schemes if necessary, and strongly support congestion charge schemes such as the successful London Congestion Charge in other cities across the country.

(LB)

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