16:30 Sarah Edwards (Labour)

That this House has considered the transition to zero emission vans.

It is an honour to serve under your chairmanship, Mr Efford. Vans are the workhorses of the UK economy, with one in 10 workers, across a range of industries, relying on a van for their job. From engineering to construction, and from food delivery to emergency and rescue services, many of these industries are part of the backbone of our economy, and we must support them as we make the journey to net zero.

Currently, emissions from vans are increasing year on year, which contributes to the detrimental impacts of climate change across the UK and globally. In my constituency of Tamworth, residents have been hit by flooding for centuries, but it is in recent decades that extreme flooding events are becoming more common, and the flooding season is now lasting three months instead of one, putting a huge strain on our rural economy’s farmers and on our food security. Those floods, which have left people in our rural villages isolated and trapped, have been a key issue, blocking routes for vans and HGVs, with fleets forced to do 15-mile diversions to get back on track. The devastating effect of climate change is impacting both residents and businesses, and we must take every step we can to reduce emissions.

We must do that by using zero emission vehicles. Since 1990, emissions across the UK fleet have risen by 63% via the increased use of diesel vans. In our bid to reach net zero, we must explore the challenges within this sector and address the limitations on infrastructure, including the hurdles and higher costs. We must move some of our most polluting vehicles off our roads and move towards cleaner, more environmentally friendly vans. We cannot do that unless there is a step change in the approach to investment and infrastructure, and we must ensure that we do not leave small and medium-sized enterprises behind in the process. In this debate, I shall argue that the 4.25 tonne e-vans should face the same rules and regulations as the 3.5 tonne diesel vans, and that more should be done to deal with the ad hoc installation of the electric infrastructure needed to lay the foundations for our transition towards a net zero economy.

While the move to zero emission vans is vital, it does not come without challenges. Currently, the target for zero emission vans is about 70% by 2030, and operators need support with that. Small and medium-sized enterprises are already struggling with the weight of increasing energy costs. In order to support them through this transition, there must be targeted incentives and a roll-out of suitable infrastructure, but there is no protection for businesses from energy costs.

The challenges of infrastructure regulation, affordability and availability of suitable projects is holding back businesses in their move towards e-vans, which in turn slows down the laudable goal to reach net zero. A giant leap is therefore needed to move the market from the 5.9% of e-van sales that we saw last year for the UK to meet its emissions targets.

At present, schools are receiving a higher incentive for the installation of charging infrastructure, whereas commercial premises are receiving a much smaller incentive through the workplace charging scheme. Schools can get 75% off the cost of a buy-and-install charge point up to a maximum of £2,500 per socket. In contrast, the EV infrastructure grant for small and medium-sized enterprises gives them money off the cost of wider building and installation work, which is needed to install multiple charge points. The grant covers 75% of the cost of the work, up to £15,000, and they can get £350 per charge point socket installed and up to £500 per parking space enabled with supporting infrastructure. Although that grant is a good step, it is not considered large enough to incentivise SMEs to accept the risk and financial burden of installation and transition to net zero.

If we are to move towards the widespread use of zero emission vans, we must ensure that infrastructure such as charging facilities is available and affordable and, crucially, in the right places. The burden of cost for both the installation of EV chargers and the upgrade to power for e-vans falls at the feet of small and medium-sized enterprises, which is no way to drive our journey to net zero and grow our economy. We need a spatial strategy to assist with this, and one which does not rely upon solely the private sector and those who may have the capital to invest.

Those challenges are not limited to the transition for zero emission vans. The logistics industry is essential to our economy, and many companies operate fleets with vehicles of varying sizes, providing different coverage for different parts of the business operation. The heavy goods sector currently accounts for just under 20% of UK transport CO 2 emissions, yet only 0.8% of heavy goods vehicle fleets are zero emission. For HGV fleets, there are limited options for the heaviest vehicles, and those that are available are expensive. The Road Haulage Association anticipates that the overall cost of decarbonisation for HGVs will likely exceed £100 billion. Electric trucks are at least three times the price of an equivalent diesel. The RHA also estimates that up to £2 billion of investment in energy infrastructure is needed to power zero emission vehicles. Since 2014, the logistics sector has invested an additional £2.2 billion in new HGV fleets to reduce their nitrogen oxide pollution. It seeks to replicate that for CO 2 emissions, but there is a lot of work to do when the target for phasing out new diesel HGVs below six tonnes is 2035 and the target for all HGVs is 2040.

Regulation is also a big challenge in this transition, particularly regarding the weight of vehicles. A battery is heavier than fuel, and for e-vans to be able to perform like diesel vans they will be heavier. E-vans, weighing 4.25 tonnes, also face HGV MOTs, because their weight tips them into the next category of commercial vehicle, and this regulation places significant burden and additional expense on operators, impacting their downtime. It also means that there is less choice and flexibility, as fewer testers are qualified to do an MOT on an HGV. Logistics companies argue that 4.25 tonne e-vans should face the same rules and regulations as 3.5 tonne diesel vans. They are delivering the same amount of goods, but their battery puts them outside current legislative parameters. The vehicles are now classed as HGVs, meaning that they must be driven in a fleet with an operator licence and those driving them must have HGV qualifications, which cost money and time in training and must be kept up to date. No one wishes these safety requirements to be removed for HGVs, but the technical point of the weight difference between the e-van and the standard diesel van should be reconsidered as a large financial barrier to what looks externally to be an identical vehicle. It is important that these issues are considered by hon. Members and noted as a policy that has limited the transition to zero emission vans.

Various countries are successfully leading the way in the transition to electric vehicles. The Netherlands’ e-van share is more than double that of the UK. Its clear policy framework for urban logistics has introduced a number of zero emission logistic zones, starting from January 2025, and as a result the wider policies supporting its transition are leading the way among European countries for electric van uptake. We see a similar use of policy in the US, which is supporting the transition to electric vehicles under the EV acceleration challenge. Since 2021, electric vehicle sales have tripled in the US, and the number of publicly available charging ports has grown by more than 40%. The US’s Inflation Reduction Act 2022 has added and expanded tax credits for purchases of new and electric vehicles by taxpayers, and provides a $7,500 tax credit for every new green vehicle weighing up to 14,000 lbs, which equates to approximately 6.3 metric tonnes. Above that weight, it is $40,000 per vehicle. The UK could consider whether, in order to get growth, we need additional support for businesses that assist the Government in their ambition for a greener economy that promotes growth throughout the UK. If we are to transition successfully to zero emission vans, we must consider the blueprints in other countries and their successes and failures as the UK plans for growth.

Although we can incentivise businesses to move towards the use of zero emission vans, we must ensure that sufficient infrastructure, legislation and policy are in place to support that. The challenges around charging facilities, cost and infrastructure are large but not insurmountable, especially when the earlier we invest, the earlier the payback begins. The new partnership between this Government and businesses could help to transform the van sector, tackling a huge environmental impact and growing our economy. I thank hon. Members for their contributions to this debate and the Chamber for its consideration of this important topic.

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16:45 Chris Bloore (Labour)

We have heard from many colleagues about the vital role that vans play in businesses across the country, and the contribution that electrification would make to meeting net zero targets. I hope that the Minister will be able to give an assessment of the country’s current charging infrastructure and its ability to meet electric fleet and e-van business operations in the future.

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16:46 Paul Kohler (Liberal Democrat)

It is a pleasure to serve under your chairmanship, Mr Efford, and I congratulate the hon. Member for Tamworth (Sarah Edwards) on securing this important debate. As we have heard, the current state of the electric van roll-out is simply not good enough. We are way behind what is needed to meet the target of 100% electric vehicle sales by 2035. Currently, less than 2% of light goods vehicles are electric, while so far this year, little more than 5% of new registrations are electric. That is behind not just the Government’s zero emission vehicle mandate of 10%, but what is being achieved in comparable European countries, including, as we heard, the Netherlands, Germany and France.

Things are not improving, with worrying signs that the industry is stagnating. Since July, new electric van registrations have fallen every month. As the Climate Change Committee outlined last week, urgent action is needed for us to meet our national defined contributions under the Paris agreement. There is no time to delay. Transport is still the largest single emitter of greenhouse gases in the UK, responsible for 26% of the UK’s total emissions in 2021. Decarbonisation of the sector is consequently critical to meeting our targets.

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16:50 Alec Shelbrooke (Conservative)

I know we can all agree that vans play an integral role in our economy, and if the UK is to decarbonise successfully, vans will need to play a central part. Any measures in service of this welcome transition must offer a pragmatic and reasonable way forward, which the hon. Lady outlined so well. It is key to remember that too speedy a transition to electric vehicles can present challenges that we may not yet be ready to address.

It is probably no surprise that I want to draw attention, first, to the measures taken by the last Conservative Government and the manner in which they did so. They spent over £2 billion to transition the UK to zero emission vehicle use, and as of November 2023, the plug-in van grant alone had supported over 40,000 electric vans and HGVs across the UK. The previous Government also acknowledged the challenges presented by battery warranty requirements and amended battery warranty capacities, which was a welcome move. In 2023, the Department for Transport took the welcome step of announcing that the additional five-hour training requirement for drivers would be removed, and that it would make changes to towing allowances for electric vans weighing up to 4.25 tonnes. Again, the hon. Lady touched on some of the very important issues facing the industry.

The industry and drivers would appreciate more certainty about what measures the Government intend to retain and what action they intend to undertake. I hope that the Minister will offer some specificity. I also hope that the Government will commit to engaging with the industry on a range of issues, including MOT testing and drivers’ hours to further understand how the Government can pragmatically remove barriers to aid decarbonisation for fleets.

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16:55 Lilian Greenwood (Labour)

It is a great pleasure to serve under your chairmanship again, Mr Efford, and so soon as well. I am delighted to respond to this important debate. My hon. Friend the Member for Tamworth (Sarah Edwards) recently passed her first anniversary in this House, and she is proving a great champion for the people of Tamworth. I congratulate her on securing the debate and on setting out the challenges of the transition to zero emission vehicles so succinctly. I also thank other hon. and right hon. Members who have spoken and made important contributions.

I will summarise the actions that this Government are taking to address some of the issues that have been raised. The transition to electric vehicles is crucial to achieving the UK’s net zero target by 2050. As well as the environmental benefits, including lower carbon emissions, better air quality and reduced noise, the transition will help us to kick-start the economy and make Britain a clean energy superpower. Transport remains the largest source of greenhouse gas emissions in the UK. The domestic transport sector produced a staggering 28% of the UK’s total emissions in 2022. Road transport is responsible for 89% of those emissions, and vans are responsible for 19% of road transport emissions.

The challenge of eliminating that carbon and shifting to clean, green vehicles is immense, but it is also a huge opportunity for British manufacturers. Zero emission vans will be at the heart of the global economy, and making them in Britain will deliver well-paid green jobs for generations to come. To achieve that, we must ensure that there is certainty for industry and consumers, so that manufacturers have the confidence to invest and build vehicles here in the UK and consumers have the confidence to switch. When I talk about consumers, I mean not just individual drivers, but fleets and operators.

To provide certainty, we have stated our intention to phase out the sale of new cars solely powered by internal combustion engines by 2030, and we will set out further details on reducing emissions from vans in due course. All new cars and vans will need to be zero emission by 2035 and, of course, that is no change from the plan under the previous Government. There is a clear plan to get us from where we are today to where we need to be in a decade’s time.

The zero emission vehicle mandate sets annual targets for vehicle manufacturers for the registration of new zero emission cars and vans. Those targets provide a clear investment signal to vehicle manufacturers and the charge point industry. The hon. Member for Strangford (Jim Shannon), who is no longer in his place, will be aware that the mandate is being extended to also cover Northern Ireland.

The targets for vans rise annually from 10% this year to 70% in 2030, and were determined in close consultation with vehicle manufacturers. The Government recognise that the ZEV mandate targets are particularly challenging for vans. Industry figures for the year to September suggest that zero emission vans account for 6.2% of sales, and I agree with my hon. Friend the Member for Tamworth that they have remained steady at around 5% across 2023 and 2024. Clearly, we have further to go. That is why vans receive additional flexibilities under the ZEV mandate compared with cars.

Van manufacturers in 2024 can defer 90% of the target for this year to later years, meaning they can choose to sell fewer zero emission vans this year in exchange for selling more in future years as demand reaches critical mass, more models are available and prices potentially—hopefully—come down. Manufacturers can also use the carbon dioxide conversion flexibility, which allows them to sell fewer zero emission vans in exchange for reducing average emissions across their new non-zero emission vans, producing ICE vans that are less polluting. Vehicle manufacturers can therefore meet the requirements of the mandate without incurring fines, even if they do not achieve 10% of new van sales this year. However, we want to help industry to reach those targets, which is why the Government provide incentives to support the uptake of zero emission vans and trucks.

My hon. Friend the Member for Tamworth also mentioned HGVs. The phase-out date for new non-zero emission trucks is 2035 for vehicles up to 26 tonnes and 2040 for those above. The Government remain technology neutral, investing in both hydrogen and battery electrification, which is why we are providing up to £200 million as part of the zero emission HGV and infrastructure demonstrator programme. The programme will build sector confidence in the capabilities of the heaviest HGVs—40 to 44 tonnes—by supporting hundreds of battery electric and hydrogen fuel cell HGVs and kickstarting the deployment of the charging and fuelling sites. I got to ride in a battery electric HGV on a recent visit to Scania—these vehicles are here. They are not in a test phase; they are very real and available for deployment. My driver was very enthusiastic about the experience of driving an electric HGV, which, as anyone who has driven an electric vehicle will know, can accelerate really well, which is important for safety when pulling on and off roads.

We are already acting to make it as easy as possible for operators to make the switch to zero emission vans, and flexibilities are already in place on driver and operator licensing to align regulations for heavier electric vans with their petrol and diesel equivalents; as my hon. Friend the Member for Tamworth said, they look exactly the same. Standard licence holders can already drive alternatively fuelled goods vehicles up to 4.25 tonnes, rather than the usual 3.5 tonnes, provided the driver has completed five hours of additional training.

Alternatively fuelled vehicles up to 4.25 tonnes are also exempt from the need for operator licences, which place additional operational requirements on organisations operating vehicles above 3.5 tonnes. As the right hon. Member for Wetherby and Easingwold (Sir Alec Shelbrooke) said, a previous consultation sought views on the removal of the additional requirements for alternatively fuelled vehicles to access the driving licence flexibility, which included the additional five hours of training, the types of vehicles eligible for the flexibility and the towing allowance. The consultation also sought views on limiting the flexibility to zero emission vehicles only. Responses were mostly in favour of the changes, and the Government are now considering options to make it easier for both drivers and operators to move to zero emission vans. We are continuing the work of the previous Government in that respect, and reviewing options for amending roadworthiness or MOT testing, as well as drivers’ hours, tachograph and speed limiter rules for those heavier zero emission vans. The Government take road safety very seriously, and reducing the number of those killed or seriously injured on our roads is a key priority. Road safety is therefore a primary consideration in assessing any changes to regulatory weight thresholds.

The Government have a plan to deliver the UK’s transition to zero emission vans by maintaining our ambitious but achievable ZEV mandate targets, reviewing measures to make zero emission vans as accessible as possible, and accelerating the roll-out of charging infrastructure. We will continue to work closely with fleet operators, individual organisations and their trade associations to understand the barriers to their uptake of zero emission vans and identify solutions to help overcome them.

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17:10 Sarah Edwards (Labour)

I ask that the House approve the consideration of the transition to zero emission vans.

That this House has considered transition to zero emission vans.

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