The B2B platform for full-electric and plug-in hybrid electric vehicles: Policy News

British Prime Minister Gordon Brown has announced an “environmentally-friendly budget” for later this month. As part of the UK recovery plan, financial measures will go towards greening British roads and making Britain a world contender for EV production and exports.

In an interview with UK newspaper The Independent, Brown unveiled his desire to turn the country into a low-emitting vehicles producer/exporter with EV trials running in at least three cities as early as 2010. The government believes this would lead to the creation of at least 400,000 green jobs over the next five years.

Brown’s low-carbon dreams

"A different type of economy will emerge in the recovery – if we are prepared to invest in the future," said the UK Prime Minister. "Britain has a very strong and successful future ahead of us. We are leading in a number of key sectors."

Brown said he is confident that investing in green economy is the only way out of the economic recession. In order to become a low carbon economy, he is ready to increase environmental expenditures to £1.5bn (€1.67bn/$2.2bn) in the next few years.

Possible incentive for car buyers

Brown wants a fleet of EVs for all Ministers so as to set the example. The exact details of the plan are yet to be unveiled but various incentives are being considered to encourage the switch to low-emitting cars.

One possibility would be the adoption of a £2,000 (€2,230/$2,930) “scrapping incentive” similar to that being carried out in Germany and more recently in The Netherlands. The grant would be given to people switching from 9-year-old plus vehicles to EVs. But, this proposal has already received criticism from the auto industry who believes this would not have any significant effect on the ailing industry’s sales.

More incentives needed according to car industry

A spokesperson from the Society of Motor Manufacturers and Traders (SMMT) said that they "would welcome moves to encourage the take-up of any kind of low carbon technology. But purely having a scrappage scheme open to electric vehicles is not going to see a dramatic increase in sales."

Although Brown has confirmed talks with power companies to develop the adequate charging infrastructure, more needs to be done if the UK is to become an EV haven. Only six carmakers and suppliers currently produce EVs in the UK today and a lack of charging infrastructure makes it all the more difficult for people to foresee the change.

Cities filing for “green cities”

Councils are now invited to bid to become the “first green city” in the UK. Amongst others, London Mayor, Boris Johnson, has announced this week that he vowed to have 100,000 EVs in the capital's streets and build 25,000 charging points infrastructure in public streets, car parks and shops. He said he would pay for a third of the £60bn plan and count on the government to pay for the rest.

"The time for simply talking about electric vehicles is over – we need real action on the ground to make the electric vehicle an easy choice for Londoners," said London Mayor. "I am today committing millions to install the infrastructure needed for when, in just a few years time, these vehicles become much more widely available."