A new report by the Institute
for Public Policy Research argues that breaking the link between
road transport and oil is not only possible, it would benefit the economy,
create jobs and reduce carbon emissions.
The report, commissioned by Greenpeace, argues that ending the UK’s dependence on oil is critical if we
want to cut carbon emissions, improve energy security and increase the chances
of future economic stability. With transport responsible for around 75 per cent of oil
consumption, breaking the link between transport and oil offers huge opportunities
for the UK. A large-scale shift to a low carbon transport system could create
jobs and attract investment. Economic prosperity would be less vulnerable to
volatile oil prices and the UK would be in a better position to deliver on its
commitment to substantially reduce carbon emissions.
The IPPR report, Untying the Knot:
Decoupling oil and transport, identifies three key challenges
the UK transport system faces over the coming years.
If the UK
government is to tackle climate change, support a stable economy and improve
access to transport, it must:
- improve vehicle efficiency and support UK
manufacturing
- distribute the benefits of a more efficient transport
system fairly throughout society
- find ways to fund transport in an era of reduced
oil consumption.
To improve
efficiency the government has to support and advocate within the EU ambitious
targets for vehicle efficiency, specifically 95gm/km for car fleets by 2020.
The IPPR report shows that the technology is there to easily meet this target.
Not only that but having the target
taken up by the EU would play to the advantages of UK manufacturing,
specialising in engine building (30 per cent of Europe’s car engines are built in the
UK) and battery technology. An industrial strategy designed to support the
target could put the UK at the forefront of what is likely to be one of the key
technological developments of the coming century.
More efficient
cars use less fuel, meaning those who can afford to upgrade will save money
in the long run. However, those on low incomes who would benefit most from the
reduced costs cannot afford these cars. Whilst being clear that supporting
walking, cycling and public transport is the most effective means of combating
transport poverty, the report also outlines policy which could spread the advantages
of these new cars.
Finally, IPPR
explored the relationship between oil production, fuel duty and motoring costs.
With production falling in the North Sea, imports are on the increase which
basically means exporting income and jobs. In addition to improved efficiency,
tax receipts from fuel duty are likely to fall significantly, raising
questions about how to compensate for this decline in government revenue in the
coming years. This gives us a chance to create a way of charging for transport
that encourages efficiency and is less regressive.
It is clear that
if the motoring lobby is resisted then an integrated policy on transport and
car efficiency would have multiple benefits for the UK. Change is coming
whether the UK government acts or not. These changes could be of huge benefit
to industry and transport users, however if politicians fail to rise to the
challenge the UK will be left trailing other more dynamic nations.
Read our summary of the report or the full IPPR report.