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CO2 Targets for Vans

In June 2011, Regulation EC/510/2011 entered into force. It follows a similar format to the Regulation for cars, but applies to light-duty vans (that is N1 vehicles, under the definitions used in European legislation). It set a near-term European fleet average target of 175g CO2/km to be achieved from 2017 (phased-in from 2014).  A longer-term target of 147g CO2/km has been set from 2020. Different arrangements apply to manufacturers registering <22,000 vans in any given calendar year.

In the UK, a number of measures have been introduced to promote the purchase of zero-emission vans.

  • Zero emission vans currently pay 20% of the van fuel benefit charge for vans which emit CO2. In Budget 2014 the Government announced this support will be extended to 5 April 2020 on a tapered basis.

  • Electric vans are also exempt from the van fuel benefit charge, as electricity is not a fuel.

  • Since 2012, the Government has offered grants of up to £8000 off the price of an ULEV van.  

  • In January 2017, OLEV and Innovate UK awarded £20m of grant funding to 20 winning projects through the Low Emission Freight and Logistics Trial. The aim is to demonstrate and encourage the widespread introduction of new low and zero emission vehicle technologies for commercial fleets in the UK.

  • The Plug-in Van Grant pays for 20% of the purchase price for eligible vehicles, up to a maximum of £8,000. Since late 2016 up to £4m funding has been available for low emission vans and HGVs between 3.5 and 44 tonnes, which are now eligible for plug-in grants worth up to £20,000 for the first 200 vehicles purchased using the grant.

  • Government has recently published a response to the consultation on proposals to seek an EU derogation to allow Category B (car) driving licence holders to operate alternatively fuelled vehicles up to 4.25 (rather than 3.5) tonnes. Government has confirmed that it will seek this derogation. This should help address payload penalty issues and encourage uptake of cleaner vans.