Government encourages car companies to make motoring greener

Car manufacturers are being encouraged to participate in a £10m scheme to make motoring greener and create thousands of jobs

Geoff Hoon, the transport secretary, has today invited car manufacturers to bid to take part in an initiative to run electric car and ultra-low carbon vehicle demonstration projects, overseen by the Technology Strategy Board.

The project will also see about 100 electric cars provided to various towns and cities to allow families and other motorists the opportunity to give feedback on the practical steps needed to make greener motoring an everyday reality.

Building on an announcement made by the prime minister, Gordon Brown in July this year, today’s plans could lead to the creation of 10,000 British jobs and help preserve many thousands more.

The green motoring initiative is part of a wider government plan to make the most of the low carbon economy, with the possibility of about a million green jobs generated by 2030.

The government also said today that up to £20m had been dedicated to UK research into improving technology that could make electric and other green cars more practical and affordable.

This follows the publication of research which concludes, if correctly managed, the UK power system could support widespread use of electric cars and their charging needs, without requiring large numbers of new power stations.

The government has already committed to removing the barriers that could slow a changeover to greener motoring. This includes a commitment to facilitate the roll-out of charging infrastructure through the planning system, collaborating with other countries to develop international standards and considering how best to encourage the right consumer market to promote electric and other low carbon vehicles.

Work also continues with energy companies and the National Grid to assess the impact of the widespread use of electric vehicles on the electricity system.

As part of a £20m programme to ensure road transport emissions are reduced and to encourage the mass production of green vans, the Department for Transport has also announced that a number of companies have been shortlisted to bid to provide electric and low carbon vans to some councils and other public sector bodies, such as the Royal Mail.

Business minister Ian Pearson said: “Currently, less than 0.1% of the UK’s 26 million cars are electric. The government is committed to bringing lower carbon vehicles to Britain’s roads as soon as possible. We need to act now to ensure that the UK is at the forefront of this new industry.

“The UK’s automotive sector has a global reputation for research and development, design engineering and manufacturing. The development of electric vehicle technology is an opportunity for the UK to take the lead and, given the current state of the global economy, we need to seize that opportunity now.”

Professor Dan Sperling, the director of the institute of transportation studies at the University of California, Berkeley, who is speaking at a “green motoring” conference in London today, said: “I am delighted that Gordon Brown has shown such leadership by taking this first critical step forward in the UK. He is to be commended in calling this important international meeting and setting the ball rolling for a low carbon vehicle future for the UK.

“I am looking forward to discussing with experts from around the world how we can move forward one of the greatest challenges of the 21st century - the transformation of cars and the car industry.”

Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: “The automotive industry is committed to achieving significant and sustained reductions in CO2 emissions.

“It is working on a portfolio of technologies that include further improvement in conventional petrol and diesel powertrains, as well as a variety of electric, hybrid and fuel cell capabilities. It is important that the UK continues to attract investment into lower carbon vehicle research, development and demonstration, and today’s announcements are very welcome.”

Evert Geursten, the co-founder of No Internal Combustion Engine (nice), which supplies “green” vehicles, said: “Despite the economic downturn, the government knows it can’t afford to postpone action on climate change.

“Electric vehicles are emissions-free, but also a recession-busting form of transport, with motoring costs a fraction of those for standard petrol and diesel models. It’s a winning combination that benefits the environment and our customers today.”