Transport Committee challenges ‘disappointing’ Government response to Fuelling the Future report

The Transport Committee has written to the Transport Secretary, following a “disappointing” response to its to its Fuelling the Future report, urging ministers to put “more meat on the bone”. 

Published 2 March, the report made practical recommendations on how to decarbonise fuel supplies across aviation, maritime, rail and road vehicles. The Department for Transport’s (DfT’s) response to the report is attached and on the Committee’s website. 

Transport Committee Chair Iain Stewart MP said: 

“My cross-party colleagues and I found the Government’s response to our report disappointing as it failed to properly address some recommendations and sidestepped a key point altogether – that its overarching ‘technology agnostic’ approach on future fuels is long past its sell-by date. We believe ministers need to move on from this and give greater certainty to investors and others about which fuels in each mode of transport they should be backing. On this and other points, I have urged the Secretary of State to write to us again with some more meat on the bone. 

“There were some positives, however. I welcome the Government’s indication that it will assist the private sector in its race to produce low carbon fuels for aviation, a sector that will prove particularly difficult to decarbonise due to the size and weight of electric batteries aircraft would require.   

“My colleagues also urged government to stay committed to electrifying railway lines, or introducing alternative low-carbon motive power where full electrification is not viable, so that we can look forward to the day that vast swathes of the country are free of diesel-guzzling trains. We want to see a long-term strategy with costings, milestones and a credible delivery plan. The Government’s response indicates there is still some way to go before they will be ready to put pen to paper on a detailed plan. On the other hand, it was pleasing to see ministers commit to producing such a strategy for heavy goods vehicles.  

“We remain concerned that the Government has not fully thought through, or properly responded to, our scepticism about expecting ordinary motorists to bear the financial burden of transitioning to all-electric vehicles. We maintain that it is realistic and fair to expect a significant number of motorists to continue using hybrid or conventional-engine cars for years ahead. Synthetic low-carbon fuels that can be used in these engines without expensive modifications should be supported as a halfway house for a significant number of private car owners.” 

Aviation 

The report urged the Government to use its own finance to encourage private investment in low-carbon sustainable aviation fuels (SAF). The mechanism for doing this, the cross-party Committee recommended, was through ‘contracts for difference’. This is where the Government provides a company with capital for the upfront costs of developing a technology, while guaranteeing the price it will pay for the SAF when it comes on stream. 

The Government said it is “considering options” to “provide revenue certainty to SAF producers and investors, including a version of Contracts for Difference model used for low carbon electricity generation.”  

Heavy Goods Vehicles (HGVs) 

Agreeing to the Committee’s recommendation, DfT committed to developing a “Zero Emission Heavy Goods Vehicles (HGV) Infrastructure Strategy” which, it said, will outline the use cases, associated infrastructure needs and energy requirements for a zero-emission road freight sector. It said that “over the coming years”, hundreds of zero emission 40-44 tonne HGVs are expected to be on UK roads, along with the deployment of associated refuelling and recharging infrastructure, as part of its Zero Emission Road Freight Demonstrator Programme.  

Rail 

The Committee told ministers to produce a long-term decarbonisation plan for the railways, with a focus on electrifying lines to achieve its ambition to phase out diesel-only trains by 2040. Currently about 38% of the network is electrified. Recognising that electrification may not be economical in every part of the country, MPs said it should be supplemented by hydrogen, battery-powered and bi-mode or tri-mode traction trains.  

DfT said it “partially agrees”. The response reads: “The Great British Railways Transition Team will bring forward costed options for Government to carefully consider in terms of overall deliverability and affordability before any plan can be developed.” It also said its £96bn Integrated Rail Plan will entail electrification of lines on the Transpennine Route and Midland Main Line. The response reaffirms that diesel trains will be used on the East-West Rail line as an “interim solution”.  

Maritime 

In agreement with the Committee’s report, the Government said it is already working with the International Maritime Organisation to develop global standards for vessel construction that can enable ships to utilise alternative fuels such as ammonia, synthetic fuels and hydrogen. New IMO guidelines for maritime to use hydrogen and ammonia will be published in 2023 and 2024 respectively. The Committee published a report on the Maritime 2050 strategy in March 2023 which discusses in more detail the challenge of decarbonising the maritime sector.  

Electric vehicles 

The Committee made recommendations that government should facilitate the continued use of hybrid and petrol vehicles that could utilise synthetic drop-in fuels. The Committee said this could be a more “socially equitable” way of cutting emissions from private cars without the expectation of the vast majority of households needing to buy and charge electric vehicles, which some may struggle to afford. The Committee also argued that this is a more realistic option, as it expressed doubts that government will be able to sufficiently scale up the availability of charging infrastructure to meet widespread demand. 

The Government responded that it has “committed to making the transition to ZEVs affordable for everyone”, and that government incentives on infrastructure “are now targeted to where they will deliver the most impact and deliver the greatest value for money to the taxpayer”. 

The Government also said drop-in fuels face constraints around their cost and availability. The response reads: “The Government has committed to adopting a zero-emission vehicle (ZEV) mandate which will establish a trading scheme that will require car and van manufacturers to sell an increasing share of ZEVs each year from 2024, until a phase out from sale of all new non-ZEVs by 2035.” It also said the majority of car manufacturers have committed to selling 100% electric cars by 2030. It also points to increased sales and falling prices of ZEVs. 

ENDS  

Further information 

·       You can read about the Committee’s Fuelling the Future report here 

·       Written evidence received during the inquiry can be accessed here