Robert Goodwill MP, the UK Transport Minister announced at the end of April that the UK government will make £500 million available as part of a comprehensive package of measures intended to support the introduction of ultra-low emission vehicles (ULEVs) between 2015 and 2020, including £4 million specifically for HGVs.

The outline package of measures confirms the UK government’s strong commitment to making the UK a premier location for the design, manufacture and adoption of ULEVs. It aims to provide a long-term, stable and comprehensive policy framework backed by a significant funding commitment.

“I can confirm that the government is also seeking to adopt a flexible approach,” he said. “Not all the £500 million funding is allocated here, and minimum allocations are given which could be extended to reflect market conditions. Many elements of the package, including the consumer incentives, are also subject to securing the necessary state aid approvals from Europe.”

According to the Freight Transport Association (FTA), HGVs had not previously been supported in the scheme. The Association has been arguing for the need for financial support for the HGV sector to help invest in alternative fuels and technologies that will reduce carbon emissions and help improve air quality.

 
The announcement sets out £4 million in funding for HGV gas refuelling infrastructure. Gas is the most viable option for alternative fuel to reduce HGVs’ environmental footprint.  The package also continues funding for ultra-low emission vans, and raises the possibility of opening this part of the funding to commercial vehicles over 3.5 tonnes.
 
FTA’s Head of Urban Logistics, Christopher Snelling said, "This is a welcome development.  It is good to see that the freight sector has been recognised within the funding package allocation and that there is acknowledgment by government that heavy goods vehicles have as many challenges as cars in reducing emissions.  We anticipate that the funding package will contribute to increasing the uptake of gas and biomethane HGVs as the current lack of public refuelling infrastructure is one of the major factors preventing the market from taking off.  The HGV funding is a relatively small part of the package, but we hope more can be allocated in future to this important area.”