Archived press release

FOE calls for tax changes to favour greener vehicles

22 November 1996

"Fuelling the Debate: an appraisal of the role of advanced technologies in reducing vehicle emissions" was written by two of Britain's top experts on the environmental effects of motoring [3].

It concludes that cleaner engines and cleaner oil-based fuels offer the best technical opportunity for reducing toxic emissions from passenger cars, but that alternative fuels such as compressed natural gas and liquid petroleum gas should be used for buses and other"urban fleet vehicles". It recommends tax changes to spur use of greener options.

Roger Higman, Senior Transport Campaigner at Friends of the Earth said:

"The Chancellor has a real opportunity to cut pollution in next week's Budget. By encouraging cleaner cars and fuels and by discouraging 'gross polluters' he can help consumers take the greener option."

"Fuelling the Debate" also calls on the Government to back tougher European standards for cars and fuels which are due to be debated in the Council of Ministers next spring [4].

Roger Higman continued:

"Cleaner fuels and cleaner vehicles are essential components in the Government's Air Quality Strategy. Ministers must work with our European partners to impose the toughest standards technically feasible on motor manufacturers and oil companies."

[1] Analysis of Government data by Friends of the Earth (see Sunday Times 12/11/96)shows pollution levels in Britain regularly exceed the standards proposed by the Government to protect human health. Road traffic is the major source of pollution in the places people live and at the times when standards are exceeded.

"Fuelling the Debate: an appraisal of the role of advanced technologies in reducing vehicle emissions" was commissioned by Friends of the Earth to consider potential for improvements to vehicles and fuels to reduce emissions of toxic pollutants.

"Fuelling the Debate" concluded that significant reductions in emissions from petrol and diesel engined cars are possible, whereas alternative fuels like LPG and CNG are less suitable for these smaller vehicles. It therefore calls for tougher emissions standards for petrol and diesel cars to be introduced at European level.

However, "Fuelling the Debate" recognised the role that fiscal incentives could play in encouraging the purchase of cleaner cars. Currently, owners of cars in Britain pay the same rate of vehicle excise duty (VED) regardless of how much pollution their vehicle produces (currently £140 per car). "Fuelling the Debate" recommends that the Chancellor introduces varying rates of VED - a low rate for cars meeting future European emissions standards, a medium rate for cars meeting current emissions standards and a high rate for older "gross polluters". By charging lower rates for cleaner cars and higher rates for dirty cars, the Chancellor could introduce an incentive to reduce pollution without costing the Exchequer a penny.

"Fuelling the Debate" has been sent to the UK Government as part of Friends of the Earth's response to its consultation on the National Air Quality Strategy, which ended yesterday (Thursday).

[2] Technical difficulties limit the reductions in emissions that can be achieved from heavy duty diesel vehicles such as buses, dustcarts and street cleaners. However these vehicles, that run from depots, are ideally suited to conversion to alternative fuels, as the fuel can be supplied at the depot (thus circumventing the difficulties of supply that bedevil the use of alternative fuels in private cars and lorries). Fuels such as low sulphur "city diesel", compressed natural gas and liquid petroleum gas could significantly reduce emissions from these "urban fleet vehicles". "Fuelling the Debate" calls for the introduction of a lower duty for "city diesel" to encourage its use by existing diesel vehicles. It calls for the the duty differential on liquid petroluem gas(LPG) and compressed natural gas (CNG) to be increased beyond the existing 15%and for fiscal incentives or grants to be introduced to encourage conversions of heavy duty diesel vehicles to LPG or CNG.

[3] "Fuelling the Debate: an appraisal of the role of advanced technologies in reducing vehicle emissions" was written by Dr David Taylor and Malcolm Fergusson of the Institute for European Environmental Policy. Dr David Taylor is also editor of the Financial Times newsletter 'Automotive Environment Analyst' and has been working on pollution issues from transport since 1990. Malcolm Fergusson's work has specialised in the modelling of emissions and other aspects of transport and environmental policy.

[4] The European Commission has recently (June 1996) proposed tighter emission standards for new cars and tougher specifications for petrol and diesel. These will come into effect from 2000. Even tougher emission standards and fuel specifications will follow from 2005.

The proposals for the year 2000, contained in two proposed European Directives,are due to be discussed by the European Parliament and the Council of Ministers next spring.

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