News

Lack of incentives stifling green agenda

11 September 2009

The government's lack of focus on a single low-carbon alternative to fossil fuels, along with limited incentivisation, is to blame for the slow take-up of alternative fuel sources, argues Mercedes-Benz.

A spokesman says: "Three or four years ago, LPG (Liquefied Petroleum Gas) looked quite attractive; it was half the price of petrol and the Powershift  grant meant users could offset 70% of the conversion cost through the government-funded scheme. However, following an increased levy on LPG, and the abolition of the Powershift grant, LPG was longer as viable as it was before, therefore, stifling any further development."

The AA also believes that LPG "suffers from confusing taxation policy and reduced duty differential" between it and petrol.

Vanessa Guyll, technical specialist for fuels, environment and safety at the AA, says: "It is unlikely that the UK will adopt just one fuel, and although much work is going into the development it is difficult to identify an obvious replacement for [these fuels]. It is anticipated that until at least 2020, we will remain reliant on petrol and diesel." Guyll adds that improvements in efficiency will gain momentum, and this will ultimately drive down fuel consumption and emissions.

In response, Lord Drayson, a minister  for Business, Innovation and Skills, says: "Our priority is to make the UK the worldwide leader in low-carbon vehicles. It is our duty to allow customers to dip into the [green technology] market without burdening them with major costs, and there is a clear role for government here to provide subsidies, infrastructure and market certainty."

The government in Italy has focused on compressed natural gas as an alternative to diesel and petrol. Thanks to a combination of tax breaks, incentives and infrastructure provisions, the country has the most number of CNG-powered vehicles in Europe, and the fourth-most worldwide.


Ian Tonkin
Email at ian.tonkin@rbi.co.uk
Powered by RoadTransport.com

Search the News

--------- Sponsored Links ---------
----------------------------------------

Related Blogs