KPMG comment on UK Government Transport Decarbonisation Plan

Commenting on the UK Government’s Transport Decarbonisation Plan, published today, Simon Virley, vice chair and head of energy and natural resources at KPMG UK, said:

“Transport emissions now account for a greater share of total UK greenhouse gas emissions than any other sector of the economy, so the Government’s Transport Decarbonisation Plan is hugely important if the UK is to get to Net Zero. 

“There is a heavy emphasis in the plan on future standards and technology innovation to reduce emissions in the road, rail, aviation and marine sectors. The Government is hoping that, by banning petrol and diesel truck sales from 2040, or setting a target for Net Zero aviation by 2040, the supply chain will respond with alternative low carbon fuel types. To back this up, it plans to introduce a new Zero Emission Credits scheme for vehicle manufacturers.  

“These supply-side measures will be important.  But what is noticeable is the absence of measures to reduce demand, such as road pricing, or use of green taxes to encourage consumers to switch to low carbon alternatives.

“This stands in contrast to the EU Green Deal plans, also published today, which envisage a much greater role for green taxes to reduce pollution, including new levies on aviation fuels and a Carbon Border Adjustment Mechanism, which is effectively a carbon tax on imported goods from high emission countries.”

Commenting further on the plan, Ben Foulser, co-head of future mobility at KPMG UK, said:

“Committing to delivering a green public sector fleet by 2027 sets an example that should deliver impetus for others to hit their own targets by 2030. It will also stimulate demand for zero emissions vans, which have had a slower uptake than electric cars to this point.

“But the plans could be more ambitious. Rail is important to decarbonising UK transport and while today’s plans lay the groundwork for future announcements on achieving a net zero rail network, the 2050 goal is out of step with targets in automotive.

“There is also uncertainty about hitting certain targets. Whether we are thinking about road, rail or aviation, and hydrogen-fuelled or electric, significant improvements to existing infrastructure are required to benefit fully from greener transport. The goal should therefore be planning that evaluates and delivers for all modes of transport.”

 

ENDS

Notes to editors:

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KPMG LLP, a UK limited liability partnership, operates from 21 offices across the UK with approximately 16,000 partners and staff.  The UK firm recorded a revenue of £2.3 billion in the year ended 30 September 2020.

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