The Government invests £200m to drive net zero EV innovation

More zero emission trucks are set to drive on UK roads thanks to a £200m boost to decarbonise freight vehicles, drive innovation and create new jobs as part of a week of Government action to support the sector.

With heavy goods vehicles (HGVs) alone contributing 20 per cent to all transport emissions across the UK, the £200m in Government funding announced today (Thursday 19 October) will be invested across four innovative green projects to roll out up to 370 zero emission HGVs and help set road freight on the path towards net zero, driving innovation and creating new jobs.

Delivered in partnership with Innovate UK, the £200m Government investment from the zero emission HGV and infrastructure demonstrator programme will also deliver around 57 refuelling and electric charging sites, providing the crucial infrastructure to help the haulage sector decarbonise.

The funding will help popular grocery companies such as Sainsbury’s and Marks and Spencer lower their transport emissions while protecting them from rising delivery costs associated with changing petrol and diesel prices. This could help prevent price hikes across supermarkets, allowing people to save money on food and groceries to help with the cost of living.

This funding comes as part of the government’s commitment to make the right long-term decisions for a brighter future. Decarbonising the freight sector is a key part of building a sustainable future for the industry and achieving our net zero commitments in a fair and pragmatic way which lowers costs, creates jobs and grows the economy.

Decarbonisation Minister Jesse Norman said: “The UK is at the forefront of the global transition to net zero, and today marks another important milestone to decarbonise freight, one of the economy’s most vital industries.

“That’s why I’m pleased to reveal that we’re investing £200 million to roll out 370 zero emission trucks, and a further £2.4m to pioneer green tech through the Freight Innovation Fund, as we work closely with the sector to create new jobs, grow the economy and reach net zero by 2050.”

The measures come during a week of action from the Government, including Ministers visiting multiple freight stakeholders, to understand how the sector can continue to drive innovation and play a crucial role in creating new jobs, growing the economy and helping the UK get closer to net zero.

Indro Mukerjee, CEO of Innovate UK, said: “As the UK’s innovation agency, Innovate UK is committed to supporting innovative UK businesses working to decarbonise the UK’s road freight industry. Together with the Department for Transport, the £200m in Government funding will develop world-leading battery and hydrogen trucks and demonstrate at a large scale, creating greener jobs, and boosting our net zero economy.”

To further drive innovation in freight and logistics, an additional £2.4m has also been unlocked through the second round of the Freight Innovation Fund (FIF). As part of the fund, the FIF Accelerator – open for applications from today - will help up to 10 SMEs develop new ways to make freight greener, more efficient, and more resilient.

The £7m, three-year Freight Innovation Fund aims to scale up and roll out innovative technology across the industry to decarbonise freight. It is at the heart of the Future of Freight Plan, the first-ever cross-modal and cross-Government vision to help the industry improve planning, boost innovation in data and technology, and facilitate the transition to net zero.  

Nicola Yates OBE, chief executive officer at Connected Places Catapult said: “Freight is a crucial sector for the UK and contributes around £127bn to the economy, but it is not without its challenges. Reducing the sector’s carbon footprint, cutting journey times and easing traffic congestion are key areas of focus, alongside the development of efficient and better-connected logistics hubs.”

By Mark Adair – Correspondent, Bdaily

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