Report: New funding mechanisms needed for EVs and charging to spur low-carbon transport uptake
Vehicle and charging bundles, health certification for batteries and local authority engagement are among 18 recommendations from the Green Finance Institute in order to accelerate the uptake of electric vehicles (EVs) in the UK.
The Green Finance Institute (GFI) has marked Transport Day at COP26 by publishing a new set of recommendations for the UK Government to deliver commitments made in both the Transport Decarbonisation Plan and the Net-Zero Strategy.
The GFI’s Coalition for the Decarbonisation of Road Transport (CDRT), contributed to by more than 200 experts from across the sector, has put forward 18 recommendations to finance the uptake in EVs and help decarbonise the sector.
The GFI is advocating for increased loan capacity for EVs to help boost sales in the short-term, coupled with finance bundles of vehicle, energy and charging infrastructure through monthly payments. A standardised battery health certification would, according to the GFI, provide more confidence to buyers.
On the delivery on charging infrastructure across the UK, the report claims that improved collaboration between local authorities, data providers, chargepoint operators and energy companies is critical.
The GDI claims that financial products for charging will be needed to de-risk investment, namely by providing utilisation-linked loans for installing more widely distributed chargepoints, an infrastructure facility comprised of public and private finance to address market failures and the creation of local authority toolkits to simplify the process of creating an extensive charging network.
The GFI’s chief executive Dr Rhian-Mari Thomas OBE said: “Decarbonising road transport, key to meeting our national emissions targets, is a challenge that’s too large and interconnected for any one part of the market to solve alone.
“We need radical collaboration through public and private partnerships across finance and industry focused on tackling the barriers and unlocking the estimated £150bn of investment that’s required to accelerate the pace of change.”
Members of the CDRT include Lloyds Banking Group, Octopus Electric Vehicles, Arval, NatWest Group, Gridserve, and the Global Infrastructure Investor Alliance.
Transport is the UK’s highest emitting sector and decarbonisation levels have stagnated in recent years.
Earlier this year, the Government moved forward the commitment to end the sale of new petrol and diesel cars to 2030, with an extra mandate that all cars must be zero-emissions capable by 2035. The Net-Zero Strategy aims to build on this by ensuring consumers have a smooth transition to electric vehicles (EVs). “A zero-emission vehicle mandate to improve consumer choice”, the Strategy notes.
Additionally, £620m will be made for zero-emission vehicles and EV infrastructure (although the Government doesn’t disclose how this is split). A further £350m will be invested on top of the existing £1bn Automotive Transformation Fund (ATF) to support the electrification of UK vehicles and their supply chains.
Commenting on the report, the CDRT’s programme director Lauren Pamma said: “Our inaugural report has identified a number of barriers to EV adoption by consumers, and the roll out of public charging infrastructure which, if not overcome, risk disrupting the orderly transition needed to move the UK towards zero emission motoring.
“Our solutions have been co-designed with members to unlock those barriers and accelerate the pace of change.”
edie’s Transport Primer
edie’s COP26 Primer Reports are about seizing the green opportunity. Produced in the run-up to the official talks, this mini-series of reports are based on the five key themes of COP26: Clean Energy, Clean Transport, Climate Resilience, Nature-Based Solutions, and Climate Finance. This report examines approaches to clean transport.
This report examines how crucial clean transport is in delivering the net-zero transition and responding to the climate crisis. It also explores the role that COP26 will have in incentivising the shift to zero-emission modes of transport and how that will impact markets and communities moving forward.
From the enablers and accelerators to the global transport transformation, to the political challenges and consequences of failing to take a holistic approach to charging and infrastructure for shipping and aviation, this report acts as a timely state-of-play for global efforts to deliver a green recovery and kickstart the net-zero trajectory.