Motor industry and Mandelson outline low-carbon vehicles

Business secretary Lord Mandelson has re-emphasised the government's commitment to support the development of so-called low-carbon vehicles, while the UK car industry has released a report outlining sustainability levels of its operations.

In a speech to mark the publication of the government's UK Strategic Investment Fund (SIF) interim report, Mandelson reiterated the importance of low-carbon vehicles and sustainable transport to the UK's climate change efforts and economic recovery.

"We have part-funded the world's biggest demonstrator programme for ultra-low-carbon vehicles – which is an important step towards shifting consumer assumptions about what is viable in low-carbon transport," he said.

"We will also support lead users of ultra-low-carbon cars from 2011 with a contribution to the cost of a vehicle. We cannot afford to cross our fingers and simply hope these technologies get off the drawing board."

Mandelson made the comments at the New Industry New Jobs Conference designed to discuss the results of the government's SIF announced in the 2009 Budget.

The fund allocated about £750m for investment in a range of emerging technologies to help develop the economy.

"The challenge of long-term, low-carbon recovery and growth has pushed us to look more carefully at the way in which government can drive growth; how government policy can equip our country, companies and our people to compete in a global economy," added Mandelson.

In a separate announcement, the Society of Motor Manufacturers and Traders (SMMT) released its tenth annual sustainability report outlining the gains the UK car industry has made in improving the sustainability of its operations.

Over the past decade, UK car makers claim to have cut CO2 emissions per vehicle by 41 per cent and reduced water use per vehicle by 45 per cent. Landfill used per vehicle has also been cut by 71 per cent, the organisation said.

"I am proud of the achievements industry has made during the past decade and the way it has responded to the unprecedented challenges of the recession.

"Manufacturing will play an important part in the economic recovery, and the transition to low-carbon vehicles offers new and exciting opportunities for the UK motor industry," commented Paul Everitt, SMMT chief executive.

The report outlines steps already being taken by the government to support low-carbon vehicles, including through the Technology Strategy Board's Low Carbon Vehicles Innovation Platform.

"With the success of programmes supported so far, the government has
committed additional funding of up to £10m for accelerated deployment of electric vehicle-charging infrastructure in the UK, and up to £14m to expand support for the Low Carbon Vehicles Innovation Platform, including the demonstrator programme which has now resulted in a combined investment with other funders of £25m," the report states.

The government also said it expects to see more than 340 low-emission vehicles trialled on UK roads in the next six to 12 months, which it claims is the largest trial of its kind in the world.