Net Zero Targets and Decarbonising Transport

Paul Blomfield Excerpts

Tuesday 4th February 2020 Westminster Hall

[Damian Hinds]

Steel is of great importance, and the hon. Lady knows better than most people how important it is to our industrial base. It is also important to the development of many green technologies. As she knows, steel has its own challenges. It is a very energy-intensive sector; in time, hydrogen technologies and others might help in that regard, and we need to ensure that we maximise our efforts towards them.

We now have over 22,000 public charging points for electric vehicles. There is a particular concentration in London, but also in places such as Dundee. We have 125 rapid charge points per 100 km of highway, compared with the EU average of 25. In 2018, the UK was the second-largest market in Europe for ultra low emission cars and the fourth-largest market for electric cars, and one fifth of battery electric cars sold in Europe had been made here in the UK. For actual sales as a percentage of the total car market, we were above France and Germany but, as colleagues will know, we were below some of the very high-percentage countries, particularly the Scandinavian nations and others such as the Netherlands. It is the growth curve—the year-on-year growth, albeit from a small base—that is particularly encouraging.

Alongside changes in electric vehicle technology, a lot of other relevant changes are happening in society and the economy. We have been changing the way we shop, and how and where we work, and those things potentially have material implications for the number, type and length of people’s journeys. The product itself—the performance of cars—has been improving. At the same time, the charging technology has been evolving with things such as induction pads. We have the development of autonomous vehicle technology, which is likely to be particularly significant in the future for heavy goods vehicles.

I suggest that the most important change of all is one that has already started: a change in how we buy our own transportation. “Mobility as a service” includes everything from Boris bikes to car clubs. In the car market, it includes the growth of personal contract purchase plans and, significantly, personal contract hire plans. Why do I say that is so significant? Is it not just a way of financing a vehicle? It is significant because it changes the way that people think about the cost of a vehicle. Historically, people would compare the sticker price of a car separately from the monthly running cost, but with different types of paying for mobility, the formula has changed significantly.

[Paul Blomfield (Sheffield Central) (Lab)]

I thank the right hon. Member for securing the debate, and he is making some important points. He says we need to change the way we do things. Does he agree that we need a modal shift away from cars and towards less carbon-emitting transport? Buses are key, and we need to shift bus pricing to invest in that sort of transport. If two or three people are travelling together in Sheffield, it is cheaper for them to get a taxi than to go on a bus. Does he agree that we have to change that by investing properly in our bus services?

[Damian Hinds]

As ever, the hon. Member makes an important and incisive point. A modal shift is clearly part of the response to this issue, but it will not be the whole response. As I mentioned earlier, buses are an important factor too, but there will always be a need for domestic passenger transport—cars, as we tend to call them. In a constituency such as mine, which is very rural and spread out, people need cars if they want to go to work. Making cars as environmentally friendly as possible, in terms of both carbon emissions and air quality, is an important goal.

It feels as though we are on the cusp of some quite significant change or what might be called a watershed moment. With the conversion to electric vehicles, however, we are up against some quite significant challenges from a consumer perspective. The first is cost. There is a gap between the cost of electric vehicles and the cost of internal combustion engine vehicles. Although that gap is narrowing all the time, however, I do not think that, in general, the sector or the public sector has yet made the clear and compelling case for how close those costs are—looking not at the purchase price, but at the total cost of ownership over the car’s lifetime—as well as it could have been made.

The second challenge is so-called range anxiety—“What happens if I leave home and can’t get back again because the battery runs out?” That is a perfectly good, rational fear, part of which will be addressed by improvements in infrastructure. As an aside, although scientists would say that there is no benefit to having a spare battery, and that we should just make a bigger battery, I wonder what the psychological effect might be of having one.

The third perfectly rational worry is about the car’s residual value, particularly as a result of battery degradation. That is particularly rational, given what we have been told over the years about mobile phone and laptop batteries— we have been told, “This is the generation that will not lose any of its performance,” and it has never turned out to be true. Again, if the car is not owned in the same way, that worry should be somewhat dissipated.