The Death of Diesel
A Business Green guide to driving your organisation into the future of transportation
Those companies that reap the rewards from the seismic shift will view it not as a distraction, or a frustrating imposition by the government, but an opportunity. Ultra-low emission zones and the banning of conventional vehicle sales represent the chance for companies with the will and the initiative to distinguish themselves from the competition, embrace the benefits, overcome the challenges, and launch their organisation into the future of transportation. Beyond the business-centric advantages, the long-term health and environmental benefits cannot be measured solely in pounds and pence. A hundred years from now we will look back on our dependence on fossil fuel-powered vehicles in much the same way as we do coal-fired factories today – as a necessary stepping-stone in industrial, economic and technological advancement, but predominantly as an archaic and archetypal image of air pollution. As outlined by the UK government’s Clean Air Strategy 2019, the poor air quality in the UK’s cities is one of the country’s greatest public health challenges, shortening life expectancy and damaging quality of life for millions of people, with concentrations of Nitrogen Dioxide (NO2) around busy roads often at dangerous levels.(1) The UK is currently undertaking a system-wide change in energy strategy, of which electric vehicles form just a part. Renewable energy and energy efficiency strategies complete the three-lane highway that is the wide and winding Road to Zero.
Energy strategy and fleet decision makers throughout the country will be at the forefront of ensuring their organisations aren’t left in the dust as their competitors speed into an electric future.
The world is changing and businesses must change with it. With the UK Government aiming to eliminate the sale of new diesel and petrol vehicles by 2040, the clock is ticking for the internal combustion engine.
Andrew Hobbs Technology Analyst, Business Green
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Road to Zero
An unseen killer
What the death of diesel means for your business
Beyond EV charging
The UK government’s Road to Zero strategy is introducing investment, incentives, grants and daily charges, which combine to drive the adoption of low emission vehicles.
Transport in the UK accounts for a third of the country’s carbon dioxide emissions, making emissions from conventional vehicles a major cause of public health issues and climate change.(2)
With as many as 11 million electric vehicles expected on the UK’s roads by 2030(3), the onus is on organisations to enable and support the transition today – with significant advantages to doing so.
Regulatory, public, environmental and ethical pressures all combine to ensure that ‘carbon footprint' is a key item on the agenda of almost every organisation. There’s a strong case for integrating the advantages of EV charging infrastructure in the workplace within a wider energy efficiency ecosystem.
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Source: (1) Department for Environment, Food & Rural Affairs, “Clean Air Strategy”, 2019
Source: (3) National Grid, Future Energy Scenarios, 2018
Source: (2) Department for Business, Energy & Industrial Strategy, 2018 UK Greenhouse Gas Emissions, 2019
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Contents
Faced with the question of when (not ‘whether’, as new petrol and diesel cars and vans will cease to be sold in 2040) to transition away from conventional vehicles for their organisation’s fleet, fleet decision makers must understand the nuanced nature of the decision. It isn’t simply a commercial one, though it can have serious commercial implications. Focusing first on the regulatory element of electric vehicle adoption, The UK government has made significant strides towards an EV future in the past two years – with the future of mobility forming a significant part of its industrial strategy. The government is investing in the technology and infrastructure that will underpin our electric transportation systems, providing grants to accelerate the adoption of EVs, and introducing regulations that will protect the country’s urban populations from dangerous levels of pollution and combat climate change.
The carrot and the stick
The catalysts of company fleet change are threefold: technology advancement (which is incentivising the adoption of electric vehicles), environmental (necessitating change in the first place and forcing that adoption to happen faster), and regulatory (facilitating and incentivising that faster adoption). Across all of this is an umbrella of cultural, financial, and ethical motivations surrounding investment in EVs and EV charging infrastructure.
Introduction
Transport in the UK accounts for a third of the country’s carbon dioxide emissions, making emissions from conventional vehicles a major cause of public health issues and climate change.(7)
With as many as 11 million electric vehicles expected on the UK’s roads by 2030(8), the onus is on organisations to enable and support the transition today – with significant advantages to doing so.
Source: (4) A tale of two cities: is air pollution improving in Paris and London?
Most recently, the introduction of the Ultra Low Emissions Zone (ULEZ) in central London, in April, saw many conventional vehicles subject to a £12.50 charge (on top of the congestion charge) for entering the area each day. The measure covers diesel cars and vans produced pre-2015 and petrol cars and vans from pre-2006. It is thought to affect around 40,000 vehicles daily, though this will increase greatly when the ULEZ expands all the way to the North and South Circular roads in 2021 – 28 times its current size. Many businesses are seeing their hand forced when it comes to transitioning to cleaner vehicles. However, the regulatory change represents an opportunity as well as a challenge. Can your organisation position itself as green, clean, ethical and forward-looking – attractive to potential employees and customers alike? The UK’s other major cities are likely to follow. The Government expects Birmingham, and several other cities, to introduce a Clean Air Zone (CAZ) from 2020 – not least because of the need to meet obligations to legal pollution limits. Alongside steps taken to make London’s buses and taxis greener, ULEZ is expected to make the city compliant on NO2 limits by 2025. Research suggests that milestone would otherwise have taken 293 years to achieve.(4) The Government’s Road to Zero initiative consists of almost £1.5 billion of investment.(5) Crucially for businesses, this includes grants for both electric vehicles and the charging infrastructure needed to support them. The Workplace Charging Scheme (WCS) provides upfront financial support of up to £10,000 for the purchase and installation of EV chargepoints (75 percent of purchase and installation costs, up to a maximum of £500 for each socket, up to a maximum of 20 across all sites for each applicant). Qualifying brand-new low-emission vehicles also have an automatically applied grant of up to £3,500. This includes numerous plug-in cars, vans, taxis and trucks. End users are also incentivised to install charging stations at home by the Electric Vehicle Homecharge Scheme (EVHS), which provides a grant of up to 75 percent of the cost of one chargepoint and its installation, up to a maximum of £500. The initial financial outlay of making the move to EVs is also compensated by not having to pay vehicle tax, which is calculated based on CO2 emissions. These measures are aimed at tempting businesses and individuals away from a century of reliance on the conventional vehicle. They are the ‘carrot’ to the ‘stick’ of low emission zones and vehicle taxation, before the sale of fossil-fuel powered vehicles are banned outright in 2040:
As set out in the NO2 plan, we will end the sale of new conventional petrol and diesel cars and vans by 2040. By then, we expect the majority of new cars and vans sold to be 100% zero emission and all new cars and vans to have significant zero emission capability. By 2050 we want almost every car and van to be zero emission. We want to see at least 50%, and as many as 70%, of new car sales and up to 40% of new van sales being ultra low emission by 2030.(6)
The Road to Zero, Department for Transport
Source: (5) HM Government, “The Road to Zero”, 2018
Source: (6) Ibid
Challenges & cheques
The Future of Mobility Grand Challenge is one of four Grand Challenges established in the Industrial Strategy. It is focused on making the UK’s transport system safer, cleaner and more reliable. It includes…
£1 billion over 10 years for the development of low carbon powertrains through the Advanced Propulsion Centre £246 million for the Faraday Battery Challenge to develop safe, cost-effective and high-performance batteries for electric vehicles Grants to help people buy ultra low emission vehicles, as part of a £1.5 billion investment between 2015 and 2021 to support the growth of this market Investments in electric vehicle charging infrastructure and hydrogen vehicle refuelling stations An Automotive Sector Deal setting out how government and industry will work together to achieve this strategic vision
Since its announcement, the government has published the Road to Zero strategy, made a commitment to massively expanding electric and low emission vehicle infrastructure across the country and announced a £100 million boost for R&D in zero emission vehicle technology. It has also injected £78 million from the Industrial Strategy Challenge Fund (Stephenson Challenge) to drive the electric revolution. Meanwhile, the Automated and Electric Vehicles Act has given the government new powers to improve the customer charging experience, require chargepoints to be smart and increase chargepoints at key locations.
A Business Green guide to driving your organisation into the future of transportation.
Source: (8) National Grid, Future Energy Scenarios, 2018
Source: (7) Department for Business, Energy & Industrial Strategy, 2018 UK Greenhouse Gas Emissions, 2019
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The Government’s Road to Zero initiative consists of almost £1.5 billion of investment.(5) Crucially for businesses, this includes grants for both electric vehicles and the charging infrastructure needed to support them. The Workplace Charging Scheme (WCS) provides upfront financial support of up to £10,000 for the purchase and installation of EV chargepoints (75 percent of purchase and installation costs, up to a maximum of £500 for each socket, up to a maximum of 20 across all sites for each applicant). Qualifying brand-new low-emission vehicles also have an automatically applied grant of up to £3,500. This includes numerous plug-in cars, vans, taxis and trucks.
End users are also incentivised to install charging stations at home by the Electric Vehicle Homecharge Scheme (EVHS), which provides a grant of up to 75 percent of the cost of one chargepoint and its installation, up to a maximum of £500. The initial financial outlay of making the move to EVs is also compensated by not having to pay vehicle tax, which is calculated based on CO2 emissions. These measures are aimed at tempting businesses and individuals away from a century of reliance on the conventional vehicle. They are the ‘carrot’ to the ‘stick’ of low emission zones and vehicle taxation, before the sale of fossil-fuel powered vehicles are banned outright in 2040:
Most recently, the introduction of the Ultra Low Emissions Zone (ULEZ) in central London, in April, saw many conventional vehicles subject to a £12.50 charge (on top of the congestion charge) for entering the area each day. The measure covers diesel cars and vans produced pre-2015 and petrol cars and vans from pre-2006. It is thought to affect around 40,000 vehicles daily, though this will increase greatly when the ULEZ expands all the way to the North and South Circular roads in 2021 – 28 times its current size. Many businesses are seeing their hand forced when it comes to transitioning to cleaner vehicles. However, the regulatory change represents an opportunity as well as a challenge. Can your organisation position itself as green, clean, ethical and forward-looking – attractive to potential employees and customers alike? The UK’s other major cities are likely to follow. The Government expects Birmingham, and several other cities, to introduce a Clean Air Zone (CAZ) from 2020 – not least because of the need to meet obligations to legal pollution limits. Alongside steps taken to make London’s buses and taxis greener, ULEZ is expected to make the city compliant on NO2 limits by 2025. Research suggests that milestone would otherwise have taken 293 years to achieve.(4)
Commenting on the move to ultra-low and zero emission vehicles, the 2017 UK plan for tackling roadside nitrogen dioxide concentrations says:
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With as many as 11 million electric vehicles expected on the UK’s roads by 2030(16), the onus is on organisations to enable and support the transition today – with significant advantages to doing so.
Source: (10) Public Health England, ‘Estimating local mortality burdens associated with particulate air pollution’, 2014.
Air quality in the UK has improved significantly over the past few decades. Since 1970 sulphur dioxide emissions have decreased by 95 percent, particulate matter by 73 percent, and nitrogen oxides by 69 percent. However, the failure of the European regulatory system to deliver expected improvements in vehicle emissions through the ‘Euro Standards’ – a fact mired in controversies around the gaming of rolling-road emissions tests – has meant dangerously poor air quality persists in many areas of the country.
This shift will resolve our air quality problem as combustion engines gradually disappear from the streets of our towns and cities. However, this will not happen quickly enough and the impact that air pollution continues to have on the health of this nation means we must do more, sooner.(9)
Source: (12) King’s College London, ‘Health impact assessment of air pollution on asthma in london’, 2019
Source: (9) Department for Environment, Food & Rural Affairs, UK plan for tackling roadside nitrogen dioxide concentrations, 2017
Dirty diesel
Diesel vehicles are producing real world emissions many times higher than laboratory tests indicate, making a massive contribution to pollution levels and the subsequent damage on health. The Volkswagen emissions scandal, and the greater awareness of diesel’s environmental and healthcare effects that came with it, has left an indelible stain on what was once seen as the reliable, economical and even relatively clean workhorse of the modern economy. Public Health England has revealed that poor air quality is the largest environmental risk to public health in the UK(10), while evidence from the World Health Organization (WHO) shows that older people, children, people with pre-existing lung and heart conditions, and people on lower incomes may be most at risk.(11) This is echoed by Mayor of London Sadiq Khan, who has said that London's air pollution is a “public health emergency” and it was the “poorest Londoners that suffer the worst quality air”. At least 360 primary schools are in areas exceeding safe legal pollution levels, affecting their pupils’ lung development. Exacerbation of asthma by air pollution is estimated to have led to around 1,000 asthma admissions from 2014 to 2016 in children in London, 10 percent of all asthma admissions in this group.(12) Meanwhile all Londoners, and millions of people in other cities throughout the UK, are currently exposed to concentrations of particulate matter exceeding World Health Organisation (WHO) guidelines. This has left the UK government with the task of paving a better way forward – the Future Mobility Challenge. The programme, which comes under the government’s Road to Zero emissions initiative (and the new Industrial Strategy), will see electric cargo bikes, vans, quadricycles, and micro vehicles replace fossil-fuel-powered vans in UK cities, in an effort to reduce emissions and congestion.
Source: (16) National Grid, Future Energy Scenarios, 2018
Source: (13) Mayor of London, London Environment Strategy, 2018
Source: (14) Department for Transport, The Last Mile, 2018
There are currently 300,000 HGVs and over 4,000,000 vans on the UK’s roads.(14)
They contribute to illegal levels of nitrogen dioxide (NO2) and particulate matter (PM), exacerbating chronic illnesses, shortening life expectancy, and damaging lung development.
Around 50% of emissions of nitrogen oxides (NOx) come from road transport.(13)
They are also increasingly linked to: • Diabetes • Cognitive illnesses • Dementia
Climate change
The shorter-term health benefits are clear to see but what about the long-term environmental implications? Climate change research increasingly indicates that key tipping points in our planetary climate systems may already have been passed. In October 2018 the IPCC report on the impacts of global warming, revealed that limiting the temperature increase to 1.5°C above pre-industrial levels would require rapid, wide-spread change and would be crucial to ensuring a sustainable and equitable society.(15) The current increase stands around 1.0°C. If the rate of climate change isn’t slowed, and ultimately halted in time, the resulting rising sea levels, melted ice caps, increased temperatures and extreme shifts in climate will have colossal implications for the planet’s ecosystems and societies. Transport in the UK accounts for a third of the country’s greenhouse gas emissions. A figure that has remained largely unchanged since 2003. With the use of electric vehicles expected to take off over the next few years, this is finally predicted to change.
Source: (15) IPCC, Special Report, Global Warming of 1.5 °C
UK plan for tackling roadside nitrogen dioxide concentrations
(11) World Health Organization, ‘Review of evidence on health aspects of air pollution – REVIHAAP Project’, 2013
Diesel vehicles are producing real world emissions many times higher than laboratory tests indicate, making a massive contribution to pollution levels and the subsequent damage on health. The Volkswagen emissions scandal, and the greater awareness of diesel’s environmental and healthcare effects that came with it, has left an indelible stain on what was once seen as the reliable, economical and even relatively clean workhorse of the modern economy. Public Health England has revealed that poor air quality is the largest environmental risk to public health in the UK(10), while evidence from the World Health Organization (WHO) shows that older people, children, people with pre-existing lung and heart conditions, and people on lower incomes may be most at risk.(11)
This is echoed by Mayor of London Sadiq Khan, who has said that London's air pollution is a “public health emergency” and it was the “poorest Londoners that suffer the worst quality air”. At least 360 primary schools are in areas exceeding safe legal pollution levels, affecting their pupils’ lung development. Exacerbation of asthma by air pollution is estimated to have led to around 1,000 asthma admissions from 2014 to 2016 in children in London, 10 percent of all asthma admissions in this group.(12)
Meanwhile all Londoners, and millions of people in other cities throughout the UK, are currently exposed to concentrations of particulate matter exceeding World Health Organisation (WHO) guidelines. This has left the UK government with the task of paving a better way forward – the Future Mobility Challenge. The programme, which comes under the government’s Road to Zero emissions initiative (and the new Industrial Strategy), will see electric cargo bikes, vans, quadricycles, and micro vehicles replace fossil-fuel-powered vans in UK cities, in an effort to reduce emissions and congestion.
If the environmental and health arguments for transitioning to EVs and offering EV charging stations at your organisation aren’t enough on their own, there are significant business advantages to taking the leap ahead of your competitors.
Businesses today will be conscious of the fact that EVs are the future. Those with vehicle fleets will either already be transitioning, at least in part, or weighing up doing so. Even organisations without fleets should consider the value of providing EV charging stations to employees. EV commuters will be far more likely to consider a position at a workplace with EV charging, making the provision crucial to tapping into the largest possible talent pools in the years to come. Similarly, charging stations can also benefit and attract customers and business partners. A limited Business Green survey of 45 fleet decision makers revealed that almost half had either partly converted their fleet to EVs or were in the process of doing so. Of the remainder, half were either planning to use EVs or evaluating them. Likewise, just a quarter of respondents weren’t using EV charging stations or had any plans to evaluate or implement them. The wheels of change are very much in motion.
Tipping points
The cultural sentiments around restrictive ranges, slow charging times, and high purchase prices historically associated with electric vehicles are gradually being eroded, aided by new technology, economies of scale, better charging infrastructure and government grants. For many, the reasons for making the switch aren’t purely economic. Fleet and energy infrastructure decision makers expressed the importance of reflecting the company ethos when it came to fleet vehicles, sustainability and attracting potential employees. These drivers were reinforced by government actions such as emission zone charges (both existing and potential) and government grants. Cost savings also play an important factor in deciding to use EVs. While the initial outlay can prove greater than conventional vehicles, the ongoing running costs, including energy, maintenance, and vehicle tax, are typically much lower. For many the leading motivator is simple and irrefutable: they simply must prepare for an EV dominant future and the death of diesel. Many organisations are eagerly embracing the benefits to public perception that come with green business strategies. They reflect a more modern, ethical, community minded approach to doing business, that goes far beyond the bottom line.
Delivering the goods
The use of electric vehicles for carrying cargo is a more nuanced consideration, as reflected by the government’s recent call for evidence into the use of EVs for last mile deliveries.
Source: (17) Department for Business, Energy & Industrial Strategy, 2018 UK Greenhouse Gas Emissions, 2019
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The need for electric vehicle charging infrastructure at destinations, places of work and home was also seen as a significant issue. Respondents raised the challenges associated with charging a large number of vehicles parked on residential streets, as well as the need for power generation, distribution requirements and storage possibilities to be fully considered.
Government Call for Evidence, Future of Mobility, The Last Mile
The government has responded by announcing continuing support for the sector through the Plug in Van Grant, which provides 20 percent of the purchase price of an eligible van, up to a maximum of £8,000, or £20,000 for the first 200 eligible large vans or trucks. They are also considering extending the Workplace Charging Scheme entitlement from 20 sockets per company to 20 sockets per site to increase the availability of charging infrastructure. While those Business Green surveyed often cited “the purchase price of EVs” as an obstacle to adoption over the past two years, many also confessed to both a lack of understanding when it comes to total cost of ownership (TCO) and the key benefits of EVs. Therefore, there is a burden of responsibility on fleet and energy infrastructure decision makers to do their research when it comes to EVs and EV charging, bearing in mind that it isn’t a direct apples-to-apples comparison with conventional vehicles. Perhaps most telling of all is the fact that over half of the 45 fleet and energy infrastructure decision makers we surveyed expected to be using an EV as their primary vehicle within five years. That is the sort of timeline that means businesses need to be starting the transition process today, or risk being left behind.
Transport in the UK accounts for a third of the country’s carbon dioxide emissions, making emissions from conventional vehicles a major cause of public health issues and climate change.(17)
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The move away from conventional vehicles is just one part of the UK’s carbon zero ambitions. This is reflected in the business strategies of many of the organisations we polled, as shown in the infographics above. Regulatory, public, environmental and ethical pressures all combine to ensure that “carbon footprint” is a key item on the agenda of almost every organisation.
Alongside this, there’s a strong case for integrating the advantages of EV charging infrastructure in the workplace within a wider energy efficiency ecosystem. Organisation with large electricity demands stand to benefit from generating their own. This is magnified as EV use grows. Photovoltaic (PV) solar panels can be combined with battery storage and smart grid technology to direct charging and energy usage efficiently. Smart energy systems will make use of lower rates at night, to charge batteries (both within EVs and those dedicated to energy storage) and then discharge batteries during the day (supplemented by PV panels) to avoid peak electricity rates. Such a system can form the backbone of an organisations approach to energy efficiency. From more advanced considerations, like intelligent heating, ventilation and air conditioning (HVAC) and building management systems, to simple LED lighting, a holistic approach to your organisation’s energy strategy is going to offer the best results.
With widespread adoption of EV expected in the next few decades, businesses throughout the UK will need to make large scale changes to their energy strategy and infrastructure. The growing popularity of EVs, the environmental and healthcare concerns, and the public perception changes that come with it, combine to make a strong case for integrating charging stations into an ecosystem that is geared towards making the most of the reduced running costs of EVs, and in doing so further reduce your company's carbon footprint. Diesel is dying – it's up to business leaders to define what that means for their organisation and to start planning and implementing change today.
Green tech adoption rates amongst the 45 organisations surveyed...
LED lighting
PV solar panels
Building management systems
Battery storage
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Source: (19) National Grid, Future Energy Scenarios, 2018
Source: (18) Department for Business, Energy & Industrial Strategy, 2018 UK Greenhouse Gas Emissions, 2019
Transport in the UK accounts for a third of the country’s carbon dioxide emissions, making emissions from conventional vehicles a major cause of public health issues and climate change.(18)
With as many as 11 million electric vehicles expected on the UK’s roads by 2030(19), the onus is on organisations to enable and support the transition today – with significant advantages to doing so.
Climate change and air pollution are two of the biggest challenges facing the world today. Industry and governments can help people and organisations to play their part, and we at E.ON are focused on what we can do to enable this, by finding and installing energy solutions for customers that will help make the air cleaner. Our solutions could help your business be more energy efficient, whilst contributing to clean air and even cutting costs along the way. With rising air pollution influencing the Government’s Road to zero policy, our electric vehicle charging points could help your fleet, employees and customers stay charged at work and on the road whilst doing your part to clean the air.
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