Road charging recommended by Climate Change Committee
Published by Rebecca Harty
The Committee on Climate Change, an independent organisation set up to advise the UK Government on setting carbon budgets, has recommended that price should be used to manage transport demand and cut CO2 emissions.
In April 2009, the EU adopted a 130g CO2/km emission target for all new cars by 2015. Across the EU, new car emissions are currently 153.5g/km, so this reduction requires a significant change, particularly in the UK where average new car emissions are 158g/km. The UK currently tracks above the EU target however the CCC recommend that there should be convergence by 2015 and concludes that a major shift in the pace of UK carbon emissions reduction must be achieved.
Manufacturers are working to develop lower emission vehicles, as the framework includes penalties for those not meeting the targets for car efficiency.
The progress report "Meeting Carbon Budgets - The Need for Step Change" published on 12 October 2009, suggests that emission reduction should be driven forwards in part by encouraging people to make "smarter choices".
The CCC states that amongst other measures, there is scope to reduce CO2 emissions through Vehicle Excise Duty (VED), fuel duty and road pricing. Statistics from the UK and other EU countries, including France and the Netherlands, suggest that purchasing decisions can be influenced by increasing fiscal levers.
The report highlights the fact that fuel price has a direct impact on both the number of journeys drivers make and the customer demand for more efficient cars. It is claimed that a 10% increase in fuel duty could result in a 4% decrease in fuel used per kilometre. Fuel duty is therefore highlighted as an "important lever in reducing emissions". The report recognises that raising fuel duty is a controversial proposal but goes on to say that it should not be ruled out as way of "triggering a short term response to meeting carbon budgets".
From an economic perspective however road pricing is highlighted as a more effective way of lowering CO2 emissions. With congestion predicted to increase significantly in the future, road pricing is highlighted as an efficient way of reducing the demand for car travel and also of increasing the speed of those vehicles that are on the road, which would increase fuel efficiency.
Modelling by the Department for Transport, on behalf of the CCC, suggests that a national road pricing system has the potential to reduce CO2 emissions by 5% in 2020. Meanwhile, a report by IBM on the use of technology in city planning, stated that a road charging scheme in Stockholm cut inner-city traffic by 25% and reduced CO2 emissions by 14%.
While it has often been assumed that if road pricing were to be introduced there would be an accompanying decrease in VED, the CCC report suggests that this should not be the case, stating "road pricing should be introduced as a complement to fuel duty rather than a substitute". The CCC also state that "road pricing would result in a significant emissions reduction [of around 6 MtCO2 in 2020] if there were no offsetting reductions in other aspects of transport pricing" and goes on to recommend that road pricing should be seriously considered by Government.
The CCC also highlights VED as a positive way of encouraging the use of electric vehicles, which are identified as the most viable option for emission reduction throughout the 2020's. Through VED the relative cost saving of electric vehicles could be increased when compared to conventional cars.
The report also notes that the recession is likely to result in a reduction in CO2 emissions, potentially creating a false impression of rapid progress in 2008 and 2009.
The Committee's next annual report to Parliament will be published in June 2010.
