Government warned not to rely too heavily on EVs

It may be “unwise” to rely on consumers buying electric vehicles (EVs) to decarbonise transport, the House of Commons Environmental Audit Committee has warned.

In its new report, published today (17 February), the committee makes a series of recommendations on how to “green” the post-Covid pandemic recovery.

The committee calls on the government to front-load public investment in green measures that will help to counter rising unemployment.

On transport, the report says further tax incentives should be introduced to make ultra-low emission cars more affordable.

However, it expresses concern that the strategy to decarbonise transport relies “heavily” on consumers switching to electric passenger cars and vans by banning the sale of petrol- and diesel-fuelled vehicles by 2030.

“Such heavy reliance on a single policy lever to deliver such a substantial policy outcome appears unwise.”

The committee recommends that the government’s forthcoming transport decarbonisation strategy should also outline plans for “substantial long-term” investment in better public transport and traffic reduction measure, while new roadbuilding proposals should be “rigorously” assessed.

The report also calls for the government to begin scoping work on an economy-wide carbon tax. A proposal for such a tax, which the committee concludes is one of the most economically efficient ways to incentivise low-carbon changes across the whole economy, was floated by the government earlier this month.

Wider tax changes could offer an opportunity to “reset” the economy for net-zero, the report says.

The committee also recommends that the troubled Green Homes Grant energy efficiency voucher scheme should be “urgently overhauled” and the deadline for applications extended.

It is “disappointing” that the administration of the scheme appears to be “putting green jobs at risk, rather than creating them”, says the committee, which has published claims by installers that they are having to lay off staff due to delays in issuing vouchers.

“Delivery has been poor for consumers and has led to perverse consequences for installers, and the scheme remains too short-term to have any prospect of achieving its initial targets.”

Other recommendations to the government include setting out a clear strategy for CCUS (carbon capture, usage and storage) and the publication of a hydrogen strategy as soon as possible, including clear mechanisms to support the development of green hydrogen systems in the UK.

The committee’s chairman, Philip Dunne, said: “The Covid-19 crisis must be treated as a wake-up call. It is a symptom of a growing ecological emergency. The economic recovery will shape our national economy for decades to come, and it is crucial that tackling climate change and restoring nature is at its core.

“A tax system fit for net-zero Britain is key. It will encourage innovation, give confidence to the sector and support companies to make the low-carbon transition.

“There are endless initiatives that can lead to a greener future and the Chancellor should use his upcoming Budget statement to start this process. Boosting energy efficiency of homes by reducing VAT on retrofits can spur growth in low-carbon manufacturing. The funding allocated to the Green Homes Grant should be rolled over to meet the target to issue 600,000 vouchers. The electric vehicle transition must be accelerated with further tax incentives to encourage take up.”