Urgent Measures Required to Electrify UK’s Most Polluting Vehicles, According to New Industry Report

A recent report published by the Green Finance Institute (GFI) has called for immediate action to electrify over half a million heavy-polluting HGVs in the UK in order to meet the country’s net zero targets for transport. The report emphasizes the urgent need for collaboration and investment of approximately £100 billion from government, industry, and private investors to decarbonize the transport sector.

Entitled “Delivering net zero: unlocking public and private capital for zero emission trucks,” the report outlines the various barriers to financing the decarbonization of the HGV sector, including perceived technology risks, higher costs, and inadequate charging infrastructure. It proposes 10 financial mechanisms to support the decarbonization of the freight sector and help the UK achieve its net zero targets.

According to the report, the UK’s HGV fleet contributes to almost 20% of total transport emissions despite accounting for just 1% of all vehicles on the road. By investing in infrastructure such as chargepoints in depots and across the strategic road network, the country’s entire HGV fleet could be decarbonized, which would be equivalent to removing 12 million cars from the road.

The report highlights the importance of providing finance to operators and landowners to acquire Zero Emission Trucks (ZETs) and install infrastructure. With the availability of greener electric trucks, the access to finance could facilitate the replacement of over 280,000 lighter HGVs in the UK, which is equivalent to taking more than 3.5 million cars off the road.

Some of the proposed financial solutions to support the freight sector include Utilization Linked Financing (ULF), Shared Charging Infrastructure Agreements, and Residual Value (RV) Guarantee. These mechanisms aim to de-risk investment in charging infrastructure, reduce finance costs for operators, and encourage widespread adoption of zero emission HGVs.

The report also highlights the efforts of various organizations in the UK who are already taking steps to adopt electric HGVs in their fleet, such as Westminster City Council, Tesco, Amazon, and Welch Transport. It also emphasizes the financial barriers faced by small businesses that own approximately half of the HGV fleet in the UK.

The GFI’s report has received positive feedback from industry experts, with various stakeholders acknowledging the importance of the proposed financial solutions in transitioning to zero emission HGVs. They emphasize the need for collaborative efforts between industry and government to address the challenges and facilitate the transition towards a sustainable and green future.

In conclusion, the GFI’s report underscores the critical need for urgent action to electrify the UK’s most polluting vehicles. It provides valuable insights and financial mechanisms to support the decarbonization of the HGV sector, offering a significant investment opportunity and contributing to the country’s net zero targets for transport.