This snapshot taken on 06/09/2007, shows web content selected for preservation by The National Archives. External links, forms and search boxes may not work in archived websites.
Reducing fuel consumption
Obtaining the reduction in use of fuel by cars that we consider to be necessary on environmental grounds will depend on a package of measures designed to change perceptions and expectations and have mutually reinforcing effects. They must include forcing the development of vehicle technology and changing customer preferences. That in turn will require both economic instruments, with the policy of fuel price increases applied more effectively and reinforced by graduated vehicle excise duty, and direct pressure on manufacturers, either through agreements or if necessary through legislation. Because of the integration of the European market, agreements and legislation will have to be at European level. But neither the reductions at present being offered by motor manufacturers nor those being sought by the European Commission are on a sufficiently large scale. To achieve targets for reduction of carbon dioxide emissions, the package will also have to include measures of other kinds, in particular measures to encourage use of alternative modes which are more efficient in energy terms (2.88).
Urgent consideration should be given to the best way of making manufacturers take up the challenge of producing more energy-efficient road vehicles. To this end the UK Government should be prepared to support EC legislation to limit carbon dioxide emissions from cars and to ensure that increases in motor fuel prices are made on a phased basis throughout the EU (2.100)
- A range of measures will be needed from the transport sector. These will form an essential part of a balanced approach to reducing greenhouse gas emissions. Of the initiatives in the White Paper, those directed at improving the fuel efficiency of road vehicles, especially those which target fuel consumption of cars, have the greatest potential to reduce transport CO2 emissions. Reducing the overall rate of road traffic growth, and local action designed to achieve a switch to less fuel intensive forms of transport, will also play an important part.
- Increasing fuel duty has proved an effective way of directly influencing CO2 emissions from road transport as part of the strategy for tackling climate change. It encourages drivers to consider their transport choices when planning journeys and when buying, maintaining and using their vehicles; it also provides an incentive for manufacturers to improve the fuel efficiency of new vehicles. The Government has adopted a strategy of annual increases in fuel duty of at least 6% on average above inflation, 1% higher than the previous Government's commitment. The Government agrees on the value of higher fuel duty being adopted across the EU, and is continuing to push for increases in minimum duty rates on road fuels such that prices in other Member States more closely approximate to those in the UK. The review of Vehicle Excise Duty (VED) announced in the March 1998 Budget will support this strategy, reinforcing the incentives for more fuel-efficient vehicles.
- The Government agrees with the Royal Commission that, while new cars are improving progressively in terms of emissions, there has not been the same improvement in fuel efficiency. Indeed, the average (sales-weighted) fuel consumption of new cars increased in 1997 and is poorer than in 1987. Manufacturers are starting to make more progress and there are new models on the market which show considerable improvements. The Cleaner Vehicles Task Force, a partnership between Government, industry and other organisations to promote more fuel efficient and less polluting new vehicles and to reduce the environmental impact of existing vehicles, has as a key objective considering policies for improving the fuel efficiency of new vehicles.
- The Government is fully committed to the EU strategy to reduce emissions of CO2 from new cars sold in the EU to an average of 120 grammes per kilometre by no later than 2010. This represents an improvement of about a third on the current average. As part of this strategy, the Commission has reached agreement in principle with European car manufacturers to deliver the major part of the EU emissions target and is bringing forward proposals for a fuel economy labelling scheme to help influence consumer preferences. The Government believes that a voluntary agreement with industry, supported by a rigorous monitoring system, remains the quickest and most cost-effective route to securing early emission cuts. The regulatory route remains an option should the voluntary approach fail, but it is complex and controversial and not likely to deliver early results.
We...do not believe that a switch to diesel should be a main element of the strategy for reducing carbon dioxide emissions until at least [the date for implementation of EC stage IV legislation] (2.63).
(Policy on the use of diesel is covered at paragraph 27.)
Published 23 December 1998
Royal Commission on Environmental Pollution Index
Environmental Protection Index
Defra Home Page