Infrastructure Investment Needed Alongside Plug-In Van and Truck Grant Extension

The extension of the Plug-in Van and Truck Grant announced today will subsidise the initial investment needed to purchase electric vehicles and provide clarity and reassurance for the sector that the government is serious about a transition to zero emission vehicles, according to business group Logistics UK. However, the organisation's Head of Decarbonisation Policy Lamech Soloman says decarbonising commercial transport requires a multi-faceted approach:

"The Plug-in Van and Truck Grant is fundamental to the continued uptake of electric LCVs and HGVs and extending the scheme provides clarity for logistics operators looking to electrify their fleets.

"However, commercial and operational viability will always be the main driver for transport operators and alongside the cost of buying new vehicles, one of the main barriers they still face to fleet electrification is the lack of charging infrastructure. We regularly hear from our members that depot charging alone will not be enough and that there must be a mix of depot and en route charging to make operations viable.

"The sector needs greater clarity and support from government to give it the confidence to invest in these new technologies: we are urging that freight hubs and depot facilities are prioritised for grid connections to ensure confidence in the new technologies involved. It is also critical that the government does not continue to overlook the role of Low Carbon Fuels, such as HVO and biomethane, in decarbonising commercial transport and which can provide immediate Green House Gas emission savings.

"In addition, the Plug-in Van and Truck Grant should be delivered as part of a multi-year settlement, as procurement cycles for commercial vehicles can take longer than a year. Operators need certainty over the long term to plan investments and create confidence required to transition at scale."

Logistics UK is one of the UK's biggest business groups, representing logistics businesses which are vital to keeping the UK trading, and more than seven million people directly employed in the making, selling and moving of goods. With decarbonisation, Brexit, new technology and other disruptive forces driving change in the way goods move across borders and through the supply chain, logistics has never been more important to UK plc. Logistics UK supports, shapes and stands up for safe and efficient logistics, and is the only business group which represents the whole industry, with members from the road, rail, water and air industries, as well as the buyers of freight services such as retailers and manufacturers whose businesses depend on the efficient movement of goods. For more information about the organisation and its work, please visit logistics.org.uk