Despite several financial incentives designed to encourage the uptake of ultra-low emission vehicles, there has been little take up so far, reports the Campaign for Better Transport.

With the Government committed to reducing greenhouse gas emissions by 80% on 1990 levels by 2050, the Campaign for Better Transport says electric and hybrid vehicles are one of the main planks of the Government’s carbon reduction strategy.

But a range of measures, including graduated Vehicle Excise Duty (VED), Plug-in Car Grants and graduated company car taxation rules have failed to have the desired effect.

Stephen Joseph, chief executive of Campaign for Better Transport, said: “Our report suggests that now is the perfect time to consider a more radical approach and a ‘feebate’ system could work.

“The Treasury could learn from a similar scheme in France and develop one that is cost-neutral and encourages the take-up of low emission vehicles.”

A feebate scheme gives buyers of low emission cars a significant rebate – potentially several thousand pounds – while buyers of high emission vehicles pay an extra fee.
 

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