Government pledges £200m for zero emission trucks

The government has today (October 19, 2023) announced £200m of funding to decarbonise freight vehicles, drive innovation and create new jobs.

AdobeStock

With HGVs alone contributing around 20 per cent to UK transport emissions, the £200m will be invested across four innovative green projects, with the aim of rolling out up to 370 zero emission HGVs.

Delivered in partnership with Innovate UK, the government investment also aims to deliver around 57 refuelling and electric charging sites, providing the infrastructure to help the haulage sector decarbonise.

The funding is expected to help companies such as Sainsbury’s and Marks & Spencer lower their transport emissions while protecting them from changing petrol and diesel prices and rising delivery costs that are passed onto the consumer.

In a statement, Richard Smith, MD of the Road Haulage Association, said: “The commitment ministers are putting into this demonstrator significantly helps to de-risk the transition to net zero.

“The real-world demonstrators will answer many of the practical questions operators have and, in turn, give our members the confidence to invest in the zero emission lorries needed to drive down carbon emissions from our sector.”

An additional £2.4m is also available through the second round of the Freight Innovation Fund (FIF), investing £7m in total across a three-year scheme. The FIF Accelerator – open for applications from today – will help up to 10 small and medium enterprises develop new ways to make freight greener, more efficient and more resilient.

The first round of the FIF supported a series of projects, from using drones to deliver mail and services to the Orkney Islands, implementing AI and data to reduce costs, to deploying zero-emission technology to track and move freight across London.

Nicola Yates OBE, CEO at Connected Places Catapult, said: “Freight is a crucial sector for the UK and contributes around £127bn to the economy, but it is not without its challenges.

“Reducing the sector’s carbon footprint, cutting journey times and easing traffic congestion are key areas of focus, alongside the development of efficient and better-connected logistics hubs.”

Freight Week will also see the launch of two calls for evidence to continue exploring new ways to further decarbonise the industry.

The first is for evidence to inform and support the Development of the zero emission HGV and coach infrastructure strategy, which is due to be published in 2024; the second is regarding volumetric concrete mixers (VCMs), which will consider whether a temporary weight allowance should remain, be removed or amended for vehicles beyond the deadline of 2028.

The Mode Shift Revenue Support and Waterborne Freight Grant will also be reviewed to explore how to further decarbonise the sector, by shifting freight from road to rail or water, through the two schemes, in the future.