Local planning policies in England are guided by the National Planning Policy Framework which plays an important role in future proofing new developments. Whilst government is considering its response to the consultation on revising National Planning Policy Framework the draft revisions make clear that that developments should be designed to enable charging of plug-in vehicles, and encourages residential and non-residential developments to ensure adequate provision of spaces for charging plug-in vehicles through setting local parking standards. Building on this framework, we will create accompanying guidance on infrastructure provision, so that local planning authorities can best ensure the delivery of charging networks. Local authorities also have an important role in future proofing roads for on-street charging when streetworks are underway. Government is committing to provide guidance to local Highway Authorities in England on how they can consider the installation of infrastructure when roadworks are taking place, working with utility companies and chargepoint operators. Encouraging this will in the long run make the installation of chargepoints on streets easier and reduce the disruption to road users. We recognise that local authorities may need support in getting the right solutions for their local area. We are therefore committing to produce guidance for local authorities to inform them about EV infrastructure and encourage best practice on levers that they have at their disposal to incentivise infrastructure, including planning, At the centre of our vision for infrastructure is the consumer experience of charging. Charging must be straightforward and hassle free. The public charging network must therefore reliable, widespread, accessible, convenient and affordable. The Alternative Fuels Infrastructure Regulations 2017 will improve the experience of using chargepoints. They ensure that users have ad-hoc access to every publicly available chargepoint, allowing recharging without a pre-existing contract; compel infrastructure operators to make the The National Planning Policy Framework has encouraged some local authorities to take an ambitious approach to their local planning policies. For example, in ‘The London Plan’, the Greater London Authority mandate that “developments in all parts of London ensure that 1 in 5 spaces (both active and passive) provide an electrical charging point to encourage the uptake of electric vehicles”. This is currently under public The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

geographic location of their chargepoints publicly available; and mandate minimum technical specifications for chargepoint connectors, ensuring greater interoperability. The Automated and Electric Vehicles Bill will provide powers to greatly improve the charging experience for current and future EV drivers by ensuring improved accessibility and interoperability for users of the chargepoints. The Bill will enable government to mandate a common minimum method of accessing public charge points, enabling interoperability between different types of EVs and charge points. It will also enable government to set reliability and maintenance standards to ensure chargepoints are accessible. In addition, EV drivers need to know where chargepoints are located, whether they are available for use and whether they are in working order. The powers in the Bill will enable us to ensure this data is made freely available in an open source format, building on the Government’s National Chargepoint Registry. In addition, these powers could require chargepoint operators to make reliability information available, which could be used to improve the consumer We believe that pricing models are ultimately commercial matters for chargepoint network operators or host sites and appreciate that charging to access chargepoints is important for the creation of a commercially sustainable network in the longer term. Neither the Alternative Fuels Regulations nor the Automated and Electric Vehicle Bill will prevent operators from continuing to offer attractive membership deals. However we are clear that we do not want to see prohibitive pricing of public chargepoints become a barrier to the greater take up of electric vehicles, and we will continue to monitor market developments closely and work with industry to ensure pricing for EV charging is proportionate at this early stage in the market, and meets the needs of Additionally, following consultation, we have proposed to use existing legislation to standardise pricing information for electric vehicle recharging and refuelling under existing regulatory powers. This could make public charging easier for electric vehicle drivers and encourage a more competitive Chargepoints are new entrants to the streetscape and we want these to be aesthetically pleasing. We will therefore be launching a chargepoint design competition. Delivering EVs and upgrading our The electricity market is already set up to bring forward investment in generation capacity to meet demand. The Contracts for Difference scheme supports investment in low carbon generation and importantly, the Capacity Market, which is specifically designed to ensure there is generation Capacity Market auctions procure the capacity that is needed four years ahead, and one year ahead, meaning the regime is designed to bring forward generation in a timely way even if EV take-up is faster than We will bring together government and the energy and automotive industries in an EV Energy Taskforce. It will focus on smart charging and how to plan for future EV

uptake and ensure the energy system can meet future demand in an efficient and sustainable way. It will launch in the summer and report back to government with proposals for government and industry over In terms of transporting the power, Ofgem’s RIIO price control process helps ensure timely investment in network infrastructure. National Grid, as the System Operator, and the network companies are responsible for forecasting and monitoring new demand on the network, in order to shape their investment plans for reinforcing the local network, deploying smart grid technologies or procuring smart, flexible services from third parties. This ensures the network infrastructure can transport the power to In line with the joint Ofgem and BEIS Smart Systems and Flexibility Plan, Distribution Network Operators are transitioning to a distribution system operator role.
The transition is being coordinated by the Energy Networks Association through the Open managing networks to enable more competition for network services, including considering smart solutions (potentially using flexibility services provided by EVs) rather As EVs are rolled out, they may be taken up in some areas more quickly than others, an effect known as ‘clustering’. Smart solutions will help and industry is consulting on the best way to manage any effects from 177 The government looks forward to understanding stakeholder views and the best way of managing this issue in the best Electric Nation – smart charging to support mass roll-out of Electric Nation has recruited 700 electric vehicle (EV) drivers, across 40 different EV makes and models, to test the latest smart charging technology and is developing their understanding of customer acceptance of domestic managed charging. Electric Nation is a Western Power Distribution (WPD) and Network Innovation Allowance funded project. WPD’s collaboration partners in the project are EA Technology, DriveElectric, Lucy Electric, GridKey and TRL. Early findings show that charging behaviour does create flexibility for smart charging at the key time of day for distribution networks, which has the potential to delay or reduce the need for costly and disruptive reinforcement work. The trial is due to complete in The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

The development and deployment of hydrogen fuel cell electric vehicles (FCEVs) is at an earlier stage than for plug-in hybrid or battery electric vehicles. Our approach in considering the appropriate government support to the development of hydrogen as a transport fuel in the UK has been based on moving in step with international progress on standards and technology, ensuring that the UK retains its position in the forefront of the adoption of zero emission vehicle technologies whilst retaining flexibility and managing risk in order to secure the opportunities at this early stage of the market. A lack of refuelling infrastructure remains a key barrier to the future roll out of FCEVs. Since 2014, government has sought to help address this market barrier by providing £4.8m and a co-ordinating function turning the refuelling facilities from various demonstrator projects into an initial network of 15 hydrogen refuelling stations (HRS) – these are operational and publically The early nature of the market means vehicle costs are still high. £2m has been provided to directly support public and private sector fleets to become early adopters of FCEVs. There are limited volumes and models of FCEV’s currently being produced globally. Despite this, the UK has been successful in securing allocations of these first and second generation models, facing strong competition from other lead markets. Major vehicle manufacturers are publicising their plans to increase production and bring new models to market over the next few years. The funding will deliver a fourfold increase in the number of FCEVs on UK roads firmly placing the UK at the forefront of early adoption, alongside California, Japan, and Germany. This is important because fuel cell technology could offer a longer-term solution in the freight and bus sectors. In the long term, hydrogen may be more suited for use in HGVs and by fleets where range and fast The UK is well placed to be a global leader in hydrogen and fuel cell powered transportation. We have high quality and growing engineering and manufacturing capability in relevant supply chains. Hydrogen for Transport Programme In March 2017 , the Government announced £23m of additional funding to increase the uptake of FCEVs and grow the number of HRS. The Hydrogen for Transport Programme (HTP) is providing support out until 2020. The funding competition for the first phase of the programme offered £9m capital budget to provide match funding for eligible projects. The successful bidders were announced on 26 March 2018. The project is being delivered by a consortium which includes Shell, ITM Power, Toyota, Hyundai and Honda as well as fleets users such as the Metropolitan Police and Green Tomato taxis. It will see four new HRS being built, upgrades to five existing stations and the

Our approach has been to align deployment of FCEVs with the appropriate infrastructure investments to ensure significant levels of station utilisation. ‘Healthy’ station utilisation should create levels of revenue for refuelling station operators that will encourage further private sector investment in expanding the network and support the case for investing in regular maintenance. Maintenance is important as it ensures high levels of availability, which in turn creates a positive consumer experience. Our ambition is that with these strategic interventions the market for hydrogen refuelling and vehicles moves to a genuinely sustainable footing as quickly as possible with growing industry An increasing number of studies and reports are presenting a range of visions for both global and UK hydrogen economies. Globally, a number of countries are taking steps to reap the benefits of integrating hydrogen vehicles into the wider energy system. Japan, for example, is seeking to build a ‘hydrogen society’, with hydrogen delivering energy across the economy, as There is more to do to understand how far the UK hydrogen economy could expand, decarbonise and apply to other sectors. Government is supporting a range of innovation activity looking at the potential role of hydrogen in heat and industry as well The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Part 4: Leadership at all levels The UK’s devolved administrations in Scotland, Wales and Northern Ireland possess, through their devolved powers, levers not available to central government to encourage motorists to make the switch to ultra low emission vehicles. This includes local incentives and/or regulations, and leading by example by making bold changes to public sector fleets, buses and taxis. We recognise and welcome the progress made in Scotland, Wales and Northern Ireland have already made to reduce emissions from road transport, and promote the uptake of ultra low emission vehicles. Each of the devolved administrations already has its own programme of measures in place.
The ambitions we have set out in this strategy are for the whole UK, and it is vital that no area is left behind. Central government will continue to work closely with the devolved administrations to reduce emissions from road transport. The grants for plug-in cars, taxis, vans and motorcycles are available UK-wide, as well as the grants for domestic, workplace and on-street Support for ultra low emission vehicles in the devolved ●● The Scottish government has said it will phase out the need for petrol and diesel ●● In June 2017 , Transport Scotland published ‘Switched on Scotland Phase An Action Plan For Growth’. This document establishes a 10-point plan to define the actions that Transport Scotland and its partners will take between 2017 and 2020 to accelerate the uptake of electric vehicles and overcome barriers to adoption. ●● Scotland has announced that it will accelerate the procurement of ultra low emission vehicles in the public and private sector car and van fleets by the mid-2020s and into the commercial bus fleet by the early 2030s. ●● The plan includes an expansion of electric charging infrastructure, including charging hubs. The Scottish government has announced a plan to create an ‘electric highway’ on the A9, including charging points along the route. ●● Through the Energy Saving Trust Scotland, Transport Scotland funds an interest-free loan for electric vehicles of up to £35,000 to cover the cost of purchasing a new ultra low emission vehicle, or up to £10,000 to cover the cost of a new electric motorcycle The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Local areas can play a key role in encouraging the transition to zero emission vehicles. For instance, London alone has accounted for 1% of global sales of ultra low leadership. It is these numerous, diverse centres of innovation that will underpin the transition to zero emission vehicles. We want all areas of the UK to consider the role they can play in tackling local air quality problems. ●● The Welsh government wants Wales to have a leading role in the development of the ultra low emission vehicle industry and has set out its aims in the Wales Economic Action 182 The Wales Transport Strategy, in development, will set out how the transport sector can be decarbonised and maximise its contribution towards these aims. ●● Welsh government has the ambition for the public sector in Wales to be carbon neutral by 2030, and expects ultra low emission vehicles to have a key role in 183 EV charging points have been installed at Welsh government offices, and are being planned for the wider Welsh government estate, education ●● An Automotive Technology Park will be developed at Blaenau Gwent with a wider remit for the Valleys area to become a leading location for the development of emerging technologies by 2027 . 184 Projects will include research into battery and powertrain technology, 5G testing, and the infrastructure needed for automated and ultra low emission vehicles. A Welsh National Battery Development Centre is also planned, based around the University of South Wales’ industry-renowned Centre for Automotive Power Systems Engineering (CAPSE). ●● The Welsh government will be investing £2m in electric vehicle charging points over the next two years to improve publicly accessible provision throughout Wales. ●● A Clean Air Zone framework is being developed for Wales which will encourage the uptake of ultra low emission vehicles. ●● The Northern Ireland Department for Infrastructure led a consortium which installed a network of over 336 fast and rapid chargepoints at 176 locations in Northern 188 These chargepoints are fully interoperable with the network in the Republic of Ireland providing a cross-border, all-island solution for users. These are owned and operated commercially by the Electricity Supply Board. ●● The Department for Infrastructure’s Ecar team provides support to consumers and the private and public sectors to promote ultra low emission vehicle growth. have facilitated the installation of a further 54 chargepoints in the Public Sector Estate. Part 4: Leadership at all levels

In July 2017 , we required 29 local areas to bring forward plans for Clean Air Zones, to possible.192 We encourage those local authorities developing plans to deliver how their plans can support and enable the transition to zero emission vehicles in the long term. Local authorities identified in the 2 Plan to take action are able to submit proposals to support such measures from the £255 million Implementation Fund and the £220 million Clean Air Fund, provided these deliver the objectives of these funds and can demonstrate they are in addition and complementary to existing government funding to support the associated £24.5 million from the Implementation Fund was made available to local authorities in March 2018 to support a range of measures to take immediate action locally. This included support for installing electric charge point hubs in car parks, bus priority measures, building cycle routes, and incentivising ultra low emission taxis through licensing schemes and leasing electric vehicles. We will continue to work across the UK to champion best practice and ensure that the benefits of the transition to zero emission vehicles are felt across the country. A Clean Air Zone (CAZ) defines a geographical area where targeted action is taken to improve air quality, shaping the urban environment in a way that delivers improved health benefits and supports economic growth. CAZs aim to address all sources of air pollution, including NO public exposure to them using a range of specially tailored local measures. These measures can include charges for vehicles which do not meet defined minimum emission standards (‘Euro VI/6’ for diesel and ‘Euro IV/4’ for petrol). The Government is currently working with 62 cities and local authorities where air pollution is above legal limits to develop local Air Quality Plans, which should consider a wide range of innovative options to improve air quality.
Where these measures are not sufficient, a local authority may choose to implement a CAZ – although this is unlikely to To help people understand what this means for them, the Government has taken steps to improve the information available to consumers and businesses. Since April 2018, point of sale data for new cars has included the Euro standard (all new cars are Euro 6), a brief explanation of when the Vehicle Excise Duty supplement for diesel cars applies and confirmation that Euro 6 cars meet current minimum standards for CAZs. As some used cars will not meet the standard for CAZs, the used car label, voluntarily adopted by most dealers, will be amended in 2018. The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

This section sets out some of the levers available to devolved administrations and local authorities across the UK to drive progress and the steps we are taking to support them to do so. Support for local authorities considering the provision of infrastructure is outlined in Part 3 above. Post-purchase incentives for ultra A number of studies indicate that post- purchase indirect incentives are effective at driving people to make the switch to ultra low emission vehicles, with higher numbers of supportive policies correlated with higher Electric Vehicle Experience Milton Keynes To encourage the uptake of EVs, Milton Keynes Council has provided an innovative approach through its launch of the Electric Vehicle Experience Centre in July 2017 . Supported by OLEV’s Go Ultra Low City Scheme, this is the UK’s first brand-neutral Centre for EVs. Its aim is to attract would-be owners of EVs and provide them with sufficient information, experience and support to inform their decision to purchase or lease. The Centre gives people the opportunity to talk to highly trained EV experts (‘EV Gurus’), and is open 7 days a week. The Gurus talk through the benefits of electric vehicle ownership, the available vehicle choices on the market, how to charge an EV, the savings in running costs and then offer a brief test drive from one of the ten car brands in the EV Experience Fleet, which are parked a few steps away from the Centre. It also has a loan fleet of over 50 vehicles enabling a short-term or longer-term “try before you Milton Keynes Council has been collecting data to establish the number of short-term and long-term test drives, number of leads generated and total footfall. In its first 6 months it had a total footfall of over 7 ,000 people per month, with almost 1,860 sales leads generated. It is clear that it is already having an impact in improving understanding Part 4: Leadership at all levels

uptake.196 Globally, the cities with the highest uptake of EVs each employ various direct and indirect incentives to encourage sales.197 In 2016, we funded eight exemplar cities to accelerate the roll-out of ultra low emission vehicles through a £40 million Go Ultra Low In addition to providing valuable learning points and examples of best practice for all local authorities, the GUL City Scheme will deliver around 1600 new chargepoints including up to 1000 on-street chargepoints. These projects also support the uptake of ultra low emission vehicles in adjacent rural areas. For example, infrastructure planned under the Bristol and West of England project includes installations in surrounding district council areas. Dundee and York are installing chargepoint hubs to link up wider local areas, enabling commuters and others ●● Free or subsidised parking for ultra low emission vehicles – as in Milton Keynes ●● Support for local businesses transitioning their fleets to ultra low emission vehicles – as in Nottingham and Bristol; and ●● Incentives through preferable access to low emission and clean air zones (London provides free access for ultra low emission vehicles to its Congestion These are already proving to be successful. To continue to support local authorities to introduce post-purchase incentives for ultra low emission vehicles, we ●● Disseminate best practice and learning points from the eight GUL cities to enable other authorities to promote ultra low emission vehicles and support the installation of chargepoint infrastructure. We will run a series of regional events ●● Launch a new service on the Go Ultra Low website that captures in one place all the local incentives that exist across the UK to help promote them to motorists. In order to promote ultra low emission vehicles, local areas may need to define which vehicles are ultra low or zero emission. There is a case for a national standard to give clarity and consistency to consumers and businesses. But local areas will also need flexibility to reflect local circumstances. We will aim to set out guideline definitions in early 2019 which local areas may wish to adopt in setting their own The move to zero emission taxis will deliver significant local benefits because taxis are typically used more intensively than private cars and often in urban centres where congestion and poor air quality are issues. There are around 250,000 taxis operating across the 75,000 hackney carriages and 175,000 private hire vehicles. The transition of this fleet to ultra low emission vehicles is a priority to help prevent the most polluting vehicles from entering areas with air There is now a new market in purpose built zero emission black cabs. The Coventry based London Electric Vehicle Company’s new zero emission taxi is on the road in a The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

number of cities around the country and we expect ADV Dynamo to launch its new taxi in the near future. We have supported this early market through a new plug-in taxi grant of up to £7 ,500 to help reduce the upfront price premium for a purpose built taxi. The plug-in car grant supports other ultra low emission vehicles that are used as taxis. To support this new taxi market it is important that suitable chargepoint infrastructure is in place.
We are therefore providing ten local authorities across the country with £14m up to 2020 (which also will enable match funding) to install chargepoint infrastructure. Several of these ten local authorities service wider rural To support this funding, these authorities are using their taxi licensing regime and other local levers to drive the uptake of these new taxis. For example, London introduced new requirements so that from January 2018 all newly licensed taxis must be capable of zero The combination of national and local measures means we expect taxi fleets will be capable of zero emission journeys faster than the wider private fleet. We recognise that there may need to be interim steps for some operators, particularly where air quality is an immediate issue. For example, in the short term this may mean choosing a Euro VI petrol vehicle or considering alternatives such as converting existing vehicles to run Part 4: Leadership at all levels

There is still much more to do across the country to complete the taxi fleet’s transition to zero emission vehicles. That’s ●● we have established a £50 million plug-in taxi grant, providing up to £7 ,500 off the price of a purpose-built taxi. ●● we have established and will continue to support a best practice network for the 10 local authorities where we have invested £14 million for taxi chargepoint ●● we will provide a minimum of £6m further funding to help more local areas install ●● we are working to revise best practice guidance to local taxi and private hire vehicle licensing authorities in England. As part of this work we are exploring whether to mandate that all taxi fleets in urban areas should be capable of zero ●● the Low Carbon Vehicle Partnership is developing guidance on ultra low emission taxis for local authorities to be published in early summer 2018. Buses are a vital part of the public transport system and critical to the government’s objectives to encourage modal shift to more sustainable modes of travel. One full double decker bus can take up to 75 cars off the 202 That means that buses take millions of car journeys off UK roads every year, reducing greenhouse gases and congestion. Buses also play an important role in providing more accessible transport for Overall, buses emit less air pollution than the equivalent number of car journeys they replace. However, on urban routes – where the majority of buses operate – the slower speeds, stop-start conditions and presence of multiple bus routes mean that older diesel buses can be responsible for significant local emissions. We are therefore taking urgent action to clean up the bus fleet. As things stand the majority of buses on the road in the UK use diesel engines – but ultimately, as for all vehicle types, we want a transition to zero emission vehicles. The bus industry has seen a significant increase in the number and range of market-ready zero emission technologies in recent years, as well as widespread action to retrofit emission-reduction technology to the Zero emission buses have significantly lower greenhouse gas and air quality pollutant emissions compared to those powered by other liquid or gaseous fuels. Battery electric buses provide greenhouse gas savings of around 80%, whilst hybrid electric buses provide greenhouse gas savings of about 40%, compared to a standard diesel bus. Electric operation can be particularly beneficial in low speed, stop-start conditions where traditional combustion engines powered by diesel or gas are least efficient. There are already more than 2,500 low emission buses on UK roads, out of the 40,300 across Great Britain. However, we want to see these more across the country as soon as possible, especially in the areas with the most pressing air quality issues. We have already invested £130 million to support the purchase of over 1,700 low The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

infrastructure through the Green Bus Fund and the Low Emission Bus Scheme. Since 2013, we have also awarded £67m to retrofit 5,700 buses through the Clean Bus Technology Fund with technology to reduce 2 emissions, as set out in Part 2a. There will be a further opportunity for local authorities developing local air quality plans to bid for funding for bus retrofit through the Clean Air Fund. All of this is supported by the Clean Vehicle Retrofit Accreditation To provide further support for the transition to zero emission buses, we have launched a new ultra low emission buses scheme. £48m will be provided to accelerate the uptake of ultra low emission buses and related infrastructure in England and The Bus Services Act 2017 includes a range of measures to improve bus services through franchising and better partnership working. Local authorities and bus operators will be encouraged to agree a package of improvements to introduce bus priority With nearly £5 million support from the Low Emission Bus Scheme in late 2017 , Liverpool City Region in partnership with Arriva Merseyside delivered 72 low emission buses, including 12 single decker electric buses on routes from the city centre to Everton Valley, Anfield and Kensington. The buses can operate for 130 miles on a single charge. The Liverpool City Region Alliance has launched the ‘Better by Bus’ campaign communicating the advantages of travelling by bus and the experience passengers can expect on the new fleets. Passengers can enjoy exclusive ticket offers, smarter mobile ticketing apps and on-board technology solutions such as free Wi-Fi and USB charging points. Part 4: Leadership at all levels

measures to reduce idling and journey times, or to introduce ultra low emission options 25% of the central government fleet will be ultra low emission by 2022 and we want 100% of the central government car fleet to be ultra low emission by 2030. We want to see similar ambition from local government and other public sector fleets.
We will provide fleet transition advice through the local roadshows we are planning to run The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Annex Transport Energy Model – performance of fuel and powertrains This Annex appraises the relative environmental performance (in terms of air pollutant and greenhouse gas emissions) of different fuel and powertrain options available to consumers based on the outputs of the Transport Energy Model. The diesel emissions scandal and the ongoing gap between laboratory and real world emissions performance of new cars has undermined public confidence and has made it difficult for consumers to determine the environmental impact of their vehicle choices. Vehicle manufacturers must do better to deliver the environmental performance the UK public expect. Uncertainty over real-world environmental performance is having an impact on individual purchasing decisions and industry investment. Consumer groups and stakeholders from across the automotive, fuels and environmental sectors have called for a transparent assessment of the environmental impact of different road vehicle fuels and technologies, and for clear signalling from government to help focus investment and purchasing decisions. To respond to these calls, the Department for Transport has developed the Transport The model allows us to estimate the tailpipe MJ = mega joules, GHG = greenhouse gas, gCO2e = grams of CO2 equivalent, NOx = nitrous oxide, PM = particulate matter The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

emissions of air pollutants, the greenhouse gas emissions and the energy consumption of a range of fuel and powertrain options for cars, vans, buses and heavy goods vehicles (HGVs) over the period to 2050. The Government has worked extensively with vehicle, fuel and other stakeholders to develop the model and it has been subject to an external quality assurance review. The detailed methodology and outputs of the Transport Energy Model are set out in the Transport Energy Model Report, published alongside this strategy. The outputs of our modelling have been used to consider the current and likely future environmental impact of the range of energy sources and technologies that are currently Figures A2–A7 (see pages 118–123) illustrate the greenhouse gas emissions and tailpipe emissions of oxides of nitrogen (NO medium car, a panel van, a bus and an HGV running on a range of energy sources. For fossil fuels the greenhouse gas impact includes current average biofuel blend levels. For electricity the greenhouse gas impact is based on UK marginal grid electricity. Charts illustrating emissions of particulate matter can be found in the Transport Energy Model The use of diesel is widespread in cars and dominates in vans and heavier vehicles (buses and HGVs) in the UK. For diesel cars and vans the relatively better efficiency of diesel engines compared with petrol engines results in improved fuel economy and lower greenhouse gas emissions per kilometre cars and vans that do not meet the new Real Driving Emissions (RDE) standards are typically much higher than petrol equivalents. Particulate matter emissions have reduced substantially with the use of diesel particulate filters, and NO from these vehicles are expected to decrease considerably with the introduction of more stringent real-world emissions testing in coming years. However, current best estimates suggest that future NO emissions from diesel cars and vans will remain higher on average than petrol For heavier vehicles, particularly HGVs, the fuel efficiency and high torque (pulling power) of diesel engines make diesel a popular and practical option, especially for those doing high mileage. In addition, real vehicles (buses and HGVs) have reduced significantly as a result of tougher regulatory standards from Europe – by an estimated 97% for a 44 tonne HGV (long haul duty cycle) going from Euro IV to Euro VI. The UK played an active role in supporting and It is important to note that our modelling work takes into account the potential impact of selective catalytic reduction (SCR) technology on greenhouse gas emissions. This technology is increasingly being tailpipe emissions. It emits small amounts Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

Tailpipe Nitrogen Oxide (NO x) Emissions (gNOx/km) Well-to-wheel Greenhouse Gas (GHG) Emissions (gCO 2e/km) [1] RDE Limits included a factor accounting for measurement error. [2] Future projections (vehicle energy consumption held at 2017 levels). Hydrogen 2050 (Electrolysis) [2] The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Tailpipe Nitrogen Oxide (NO x) Emissions (gNOx/km) Well-to-wheel Greenhouse Gas (GHG) Emissions (gCO 2e/km) [1] RDE Limits included a factor accounting for measurement error. [2] Future projections (vehicle energy consumption held at 2017 levels). 0 50 100 150 200 250 300 350 400 Hydrogen (Electrolysis)Plug In Hybrid (Petrol) Hydrogen 2050 (Electrolysis) [2] Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

Tailpipe Nitrogen Oxides (NO x) Emissions (gNO x/km) Well-to-wheel Greenhouse Gas (GHG) Emissions (gCO 2e/km) 0 100 200 300 400 500 600 700 800 900 1000 Hydrogen 2050 (Electrolysis) [1] [1] Future projections (vehicle energy consumption held at 2017 levels). The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

generation of these vehi cles. Tailpipe Nitrogen Oxide (NO x) Emissions (gNOx/km) Well-to-Wheel Greenhouse Gas (GHG) Emissons (gCO 2e/km) 0 200 400 600 800 1000 1200 1400 1600 Hydrogen 2050 (Electrolysis) [1] Diesel Euro VI CNG Hydrogen (Electrolysis) [1] Future projections (vehicle energy consumption held at 2017 levels). Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

Tailpipe Nitrogen Oxide (NOx) Emissions (gNO x/km) Well-to-Wheel Greenhouse Gas (GHG) Emissions (gCO 2e/km) 0 200 400 600 800 1000 1200 1400 1600 1800 Efﬁcient DieselHybrid Diesel (s erial) [1] Future projections (vehicle energy consumption held at 2017 levels).
The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Tailpipe Nitrogen Oxide (NO x) Emissions (gNOx/km) Well-to-Wheel Greenhouse Gas (GHG) Emissions (gCO 2e/km) 0 200 400 600 800 1000 1200 1400 1600 1800 [1] Future projections (vehicle energy consumption held at 2017 levels). Bus test cycle (average speed 14.9 km/h) Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

regulated limits has increased, but new RDE limits should help close this Pre-Euro 6 Diesel Cars Euro 6 Diesel Cars Diesel Car NOX emissions (gNOx/km) Euro 2 Euro 3 Euro 4 Euro 5 No RDE COPERT RDE limit Tested vehicle estimate (COPERT factors) Regulated limit Forecast estimate (COPERT) DfT (2018), Transport Energy Model COPERT emission factors for Euro 6 diesel cars sold in current or future years (2017-19 and 2020 onwards) are not based on testing, but are forecasts of potential real world emissions which take into account that RDE compliant vehicles will make up an increasing proportion of Euro 6 diesel car sales over this time period, as well as that real- world usage conditions may not be fully captured by RDE requirements. In order to meet all RDE test requirements, which cover around 95% of all driving conditions, RDE compliant vehicles are expected to emit NO X levels much lower than the test limit in standard driving conditions. Early evidence suggests this is the case. RDE changes to the Euro standards For NOX emissions the new Euro standards require that new vehicles meet both laboratory and real world limits. The limits for the Real Driving Emissions (RDE) test are fixed in relation to the laboratory test by a ratio known as a conformity factor. This is the maximum permitted ratio by which the emissions recorded in the RDE test can exceed the laboratory emissions test limit. RDE test limit = Conformity factor x laboratory limit The changes will be implemented in two steps. The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

In the UK, petrol use is widespread in cars but is only available as an option for a limited number of vans, and is not used in heavy vehicles (buses and trucks). Petrol engines are generally less efficient than diesel engines and therefore have higher overall greenhouse gas emissions per kilometre than a diesel equivalent. However, petrol engine efficiency in cars and vans is improving due to the use of engine downsizing, turbo-charging and direct injection technology. This is in response to European new car and van 2 regulation and consumer demand for improved fuel efficiency, and will reduce the greenhouse gas emissions penalty In contrast, real-world emissions of NO from petrol cars and vans are typically substantially lower than from diesel equivalents. Petrol engines also produce much lower levels of particulate matter than diesel engines. As such, legislation has been introduced since 2007 that has driven the use in diesel vehicles of particulate filters, which are very effective at controlling tailpipe particulate emissions. As a result, even though they have similar limits, in the real world the number of particulates emitted from the tailpipe of some petrol cars and vans (particularly those with direct injection engines) can be higher than from diesel equivalents. The introduction of Real Driving Emissions standards will address this as, in order for direct injection petrol engines to meet particulate standards in real world use, it is expected that particulate filters will also Liquid Petroleum Gas (LPG) is a fossil fuel which is currently used in a relatively small number of vehicles in the UK, primarily cars, taxis and vans, which are served by an existing network of refuelling sites. Air pollutant emissions from LPG vehicles are generally lower than for diesel vehicles. X and particulate matter emissions are ●● Step 1 – From September 2017 new model type approvals had to comply with a X conformity factor of 2.1.209 From September 2019 all new cars being registered (i.e. all new cars for sale, not just new models) must comply with a NOX conformity factor of 2.1.210 ●● Step 2 – From January 2020 new model type approvals must comply with a NOX conformity factor of 1.0 (i.e. parity with the laboratory test), plus an additional factor of 0.43 to account for measurement uncertainty. From January 2021 all new cars being registered must comply with a NOX conformity factor of 1.0 (i.e. parity with the laboratory test), plus an additional factor of 0.43 to account for measurement uncertainty. RDE Step 1 vehicles are starting to be available in showrooms. These cleaner diesel vehicles are expected to have dramatically lower real world NO current Euro 6 “pre-RDE” diesel cars and vans. Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

estimated to be similar to petrol vehicles, although some industry stakeholders suggest particulate emissions can be LPG typically has lower greenhouse gas emissions per unit of energy than petrol or diesel, but LPG vehicles tend to have relatively inefficient engines (when compared to diesel) which affects the overall greenhouse gas impact of the vehicle. LPG greenhouse gas emissions per kilometre are therefore similar to diesel. Although the UK LPG market is small, and is likely to remain a niche market, LPG’s environmental performance relative to diesel makes it a good current alternative to diesel, particularly for vehicles being used in urban Natural gas (methane) is a fossil gas which is currently used in a relatively small but growing number of road vehicles in the UK, in particular in heavy goods vehicles and buses. It can be used in vehicles either as compressed natural gas (CNG) or liquefied Air pollutant emissions from natural gas vehicles are generally lower than for diesel vehicles. NOX and particulate matter emissions are estimated to be similar to petrol vehicles, although some industry stakeholders suggest particulate emissions Natural gas typically has lower greenhouse gas emissions per unit of energy than petrol or diesel.
However, gas vehicles tend to have relatively inefficient engines (when compared to diesel) which affects the overall greenhouse gas impact of a gas vehicle. Our analysis of 44 tonne gas HGVs (which is based on the latest available independent test data) shows a potential increase in greenhouse gas emissions of between 4% (CNG) and 20% (LNG) from heavy duty trucks running on natural gas when compared with an equivalent diesel truck.212 However, industry representatives claim that gas truck efficiency has improved significantly and that the latest generation of gas trucks are now delivering greenhouse gas emissions savings of 15% (CNG) compared to equivalent diesel vehicles. As we set out in Part 2c, government is working with industry to undertake further testing of the latest gas trucks; the test results will be used to inform decisions on future government policy and support for the use of natural gas in road transport. If significant greenhouse gas emissions savings are clear, then natural gas could be a good lower emission option for a sector where market-ready zero emission technologies are still in development. For buses, the use of natural gas is estimated to increase greenhouse gas emissions by 12% compared to a standard diesel bus over a mixed urban and extraurban drive cycle. However, when compared to the latest ‘efficient diesel’ models, which are increasingly becoming the default choice for operators, gas bus greenhouse gas emissions were found to be Low carbon fuels can be made from wastes or crops and can replace fossil petrol, diesel and natural gas (methane). There are a range of different types, including biodiesel, bioethanol, biomethane and bio-LPG. The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Since 2008, with the introduction of the Renewable Transport Fuel Obligation (RTFO), fuel suppliers in the UK must be able to show that a percentage of their fuel comes from sustainable renewable energy sources. Biofuels are currently blended with conventional petrol, diesel and natural gas in the these shares amounted to 5% bioethanol in petrol in 2017 , 3% biodiesel in diesel in 2017 and 0.2% biomethane in On average, low carbon fuels supplied in the UK provide greenhouse gas savings of around 70% compared to standard fossil fuels.213 In 2016/17 , they delivered over 2.5 million tonnes of CO2 savings, equivalent to taking over 1m cars off the road. It is possible to use (or claim the use of) biodiesel, bioethanol and biomethane in higher blends than are currently used in conventional petrol, diesel and gas. In particular, the operators of many of the UK’s gas trucks and buses using gas from the grid claim significant greenhouse gas emissions savings from the use of 100% However, low carbon fuels can also be used to decarbonise other sectors, such as the heat sector. Limited production capacity and, in the case of biofuels, availability of sustainable feedstock materials mean that there are limitations on the extent to which low carbon fuels can meet energy demand This cross-sectoral use of energy means the baseline environmental case for the use of alternatives to petrol and diesel vehicles (for example gas vehicles) should be justified on the basis of the marginal UK renewable/ fossil fuel mix to ensure additional greenhouse gas savings are being gained. For example in the case of biomethane where production is insufficient, and unable to be sustainably scaled up, to meet overall UK energy demand, any increase in total UK gas demand due to new gas vehicles will often largely be met by an increase in the Decisions on further increases in the use of bioenergy across sectors are taken in the context of the Government’s carbon budgets and advice from the Committee on Climate Change; the Committee is currently conducting a bioenergy review which is due to be published in autumn 2018. Research on the air quality impacts of low carbon fuels indicates emissions for low carbon fuels are not significantly different from those of their fossil equivalent, particularly where they are supplied in low-level blends of fossil fuels as is typically In Part 2a we set out how recent changes to the RTFO and supporting policies will support increased blends of biofuel and realisation of the greenhouse gas benefits, including taking into account indirect land Other fuels that are covered in our analysis include aqua-methanol; a liquid fuel (a blend of methanol and water) that can be used in petrol vehicles. Our analysis shows that the greenhouse gas emissions from the production and use of methanol vary significantly depending on the production pathway. Assuming production from remote natural gas (a typical production pathway), methanol used in cars and vans has Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

greenhouse gas emissions 6% higher than equivalent petrol vehicles. Air pollutant emissions are similar to those from petrol Battery Electric Vehicles (BEVs) are driven solely by an electric motor, powered by a battery that can be plugged in to be recharged. No combustion takes place within the vehicle so there are no tailpipe emissions of air pollutants. BEVs use less energy per mile than conventional vehicles. A typical electric vehicle uses 19kWh of energy to travel 100 km, while the average petrol vehicle uses 67kWh.215 Therefore, electric motors are highly energy efficient. In addition, our modelling makes clear that, even with current UK electricity grid emissions, BEVs produce the lowest emissions of greenhouse gases irrespective of vehicle type and operation.216 For example, a battery electric car is estimated to have greenhouse gas emissions 66% lower than a petrol car and 60% lower than a diesel car. Between now and 2050, we project electricity grid emissions will fall by around 90%, with total greenhouse gas emissions from electric vehicles falling in parallel.217 As well as considering the greenhouse gas emissions from electricity production, we have also considered the emissions from battery production.
The results of adding battery production to our assessment of the environmental performance of battery electric vehicles are set out in the Transport Energy Model Report. As battery production currently requires a lot of electricity, these greenhouse gas emissions are also expected to fall over the period to 2050. The results are battery electric vehicles have substantially lower greenhouse gas emissions than conventional vehicles, even when taking into account the electricity source and electricity used for battery Like battery electric vehicles, fuel cell electric vehicles (FCEVs) use electric motors to drive the wheels. However, they store energy on-board as compressed hydrogen, rather than just in a battery. Hydrogen reacts with oxygen from the air in an on-board fuel cell to produce electricity. Water is the only by-product. No greenhouse gas or air pollutant emissions are produced meaning FCEVs are zero emission vehicles. Fuel cells are typically 40-60% efficient (comparing energy input to energy output) and since hydrogen occurs rarely in its pure form, energy is required to create it. Overall greenhouse gas emissions from hydrogen as a transport fuel are therefore highly dependent on its production method. Hydrogen is primarily produced for chemical feedstock applications. Used in a fuel cell, hydrogen produced via steam methane reformation (SMR) – currently the typical hydrogen production pathway – delivers greenhouse gas savings of between 10% (compared with a diesel HGV) and 43% (compared with a petrol car). The addition of carbon capture and storage (CCS) technology to the SMR production pathway could significantly increase greenhouse gas savings, but has yet to be demonstrated at a The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

Hydrogen can also be produced by using electricity to split water into hydrogen and oxygen. Assessed using current electricity grid emissions, this pathway does not deliver significant greenhouse gas savings compared to conventional fuels. Using electricity to produce hydrogen creates an efficiency loss compared to the direct use of electricity in a battery electric vehicle. However, as the electricity grid decarbonises, this pathway has the potential to deliver larger greenhouse A range of technological improvements in development, and there are significant potential energy system benefits to be derived from the high volumes of energy storage and flexibility hydrogen can provide. As well as being used in FCEVs, hydrogen can be used as a fuel in an internal combustion engine. Its combustion has not been assessed here, but the poor energy efficiency of combustion engines compared to fuel cells suggests that the greenhouse gas emissions would be considerably higher Hybrid electric vehicles are powered partly by electricity and partly by a conventional engine (most commonly a petrol engine). Hybrids can offer some of the same benefits as lower greenhouse gas and air pollutant emissions compared with conventional vehicles. The overall emissions performance of a hybrid vehicle is very dependent on how much the electric motor contributes to propulsion, the effectiveness of the vehicle exhaust after-treatment during hybrid operation, and the amount of time when the conventional combustion engine is There is a range of hybrid electric vehicle types, ranging from mild and full hybrids to plug-in and even range extended electric vehicles. The ways in which these work are explained below and, where they have been included in our analysis, details of their environmental performance are provided. Mild and full hybrids both have an internal combustion engine and an electric propulsion motor. In these vehicles, energy is typically captured by regenerative braking and stored within a small battery. They cannot be plugged in to be recharged. In mild hybrids the electric motor is used to support the main engine rather than to power the vehicle independently. Manufacturers are producing 48V mild hybrids which they claim reduce energy consumption by around 15% to 20%.218 In full (non-plug-in) hybrids, the electric motor is capable of propelling the vehicle in zero emission mode, but the zero emission range of these vehicles is currently very limited (typically 1-2 miles). Full petrol hybrid electric cars and vans are included in the Transport Energy Model. The model estimates greenhouse gas emissions for a full petrol hybrid car to be 20% lower than a conventional petrol car and 5% lower than a conventional diesel car. For a full petrol hybrid van the model estimates greenhouse gas emissions to be 17% lower than a conventional petrol van and 1% higher than a conventional diesel van. These differences are due to the relative Annex Transport Energy Model – summary of the environmental performance of fuel and powertrains

efficiency of petrol and diesel engines outlined previously. The model also estimates considerable air quality benefits from full petrol hybrids compared to diesel equivalents, with NOX emissions over 95% lower than a Euro 6 conventional diesel car or van sold before 2017 (before RDE came Plug-in hybrid electric vehicles (PHEVs) have an internal combustion engine and an electric motor which is charged from an external power source (i.e. the vehicle needs to be plugged in). Both the engine and the electric motor are capable of solely propelling the vehicle. Plug-in hybrids are therefore able to complete zero emission journeys. The environmental benefits of plug- in hybrids are heavily reliant on (i) their zero emission range (i.e. the battery capacity); The Transport Energy Model includes plug- in hybrid cars and vans. The model estimates greenhouse gas emissions for a petrol plug-in hybrid car to be lower than from a conventional petrol (by 43%) or diesel (by 33%) car. The model also estimates greenhouse gas emissions to be lower for a petrol plug-in hybrid van compared to a conventional petrol (by 58%) or diesel (by 48%) van. The model also estimates air quality benefits from plug-in hybrids compared to diesel equivalents, with car NOX emissions significantly lower than those from a conventional pre-RDE Euro 6 diesel car (by 98%) or van (by 99%). These figures assume efficient use of the vehicle, i.e.
73% Range extended electric vehicles Range extenders are battery electric vehicles which use an on-board internal combustion engine to recharge the battery. The internal combustion engine is not used directly to power the vehicle. Range extenders typically have relatively large batteries compared to other hybrids and longer electric-only ranges (e.g. the BMW i3 REx’s zero emission range is 100+ miles). As with plug-in hybrids, though to a far lesser extent, the environmental benefits of range extenders depend on their zero emission range (i.e. battery capacity) and The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

197. ICCT (2017). Electric vehicle capitals of the what markets are leading the transition to electric? (online). Available org/sites/default/files/publications/World-EV- capitals_ICCT-Briefing_08112017_vF.pdf. 198. The eight Go Ultra Low Cities are Bristol and the West of England, London, Milton Keynes, Nottingham City Council, Dundee, The North east Combined Authority, Oxford City Council 199. DfT (2017). Taxi and Private Hire Vehicle England 2017 (online). Available uploads/attachment_data/file/642759/taxi- private-hire-vehicles-2017 .pdf. 200. Office for Low Emission Vehicles (2018). Plug-in Taxi vehicle application form and guidance notes (online). Available assets.publishing.service.gov.uk/government/ uploads/system/uploads/attachment_data/ file/682046/plugin-taxi-grant-vehicle- 201. Birmingham, Cambridge, Coventry, Dundee, London, Nottingham, Oxford, Slough, West Yorkshire Combined Authority and 202. Greener Journeys (2017). Improving air quality in towns and cities. Why buses are an integral part of the solution (online). Available uploads/2017/04/Improving-Air-Quality-in- Towns-and-Cities-PROF-DAVID-BEGG-Final. 203. Battery electric buses produce no tailpipe emissions. Greenhouse gas emission savings are based on current electricity grid mix. 204. DfT (2016). Government awards £30 million funding for cleaner, greener bus journeys (online). Available news/government-awards-30-million-funding- for-cleaner-greener-bus-journeys. 205. DfT (2018). Government announces £48 million for cleaner, greener buses (online). Available announces-48-million-for-cleaner-greener- 206. DfT (2018) Transport Energy Model Report. 207. N2O emissions factors are sourced from the national atmospheric emissions inventory. 208. For vans these dates are one year later. 209. Step 1 of the RDE changes is also known as 210. For particle number (PN) the ‘all new cars registered’ date is 1 September 2018. 211. Step 2 of the RDE changes is also known as Euro 6d. The additional 0.43 factor is subject to annual review by the European Commission. 212. TEM modelling based on energy consumption data from Emissions testing of gas-powered commercial vehicles (online). Available www. gov.uk/government/publications/emissions- testing-of-gas-powered-commercial-vehicles. 213. Taking into account reductions due to indirect 214. DEFRA (2011). Road transport impact on UK air quality (online). Available documents/110322_AQEG_Biofuels_advice_ 215. European Commission Joint Research Centre (2014). Report EUR 26236 EN, Well-to-wheels Analysis of future Automotive Fuels and Powertrains in the European Context – WTW Appendix 1 – Version 4.a (online). Available jrc.ec.europa.eu.about-jec/files/documents/ wtw_app_1_v4a_march_2014_final.pdf. 216. Electricity emissions factors have been sourced from the Government’s Green Book supplementary valuation of energy use and greenhouse gas emissions for 217. BEIS (2017). Electricity emissions factors (online). Available uploads/system/uploads/attachment_data/ file/666406/Data_tables_1-19_supporting_the_ toolkit_and_the_guidance_2017 .xlsx. The Road to Next steps towards cleaner road transport and delivering our Industrial Strategy

218. Advanced Lead Acid Battery Consortium (2016). 48V Mild-Hybrids Can Meet Emissions 2 Reductions of 15-20% (online). Available releases/48v-mild-hybrids-can-meet-emission- reductions-targets-with-co2-reductions- of-15-20 Government has not verified these