Opinion: Government decision to remove low carbon fuels from derogation disappointing

By Denise Beedell, senior policy manager at Logistics UK

Decarbonisation has been a high priority for the logistics industry in recent years, with many operators making the switch to alternatively fuelled vehicles (AFVs).

While these vehicles can offer positive emission reductions, the fuels or electric battery they use are typically heavier than conventionally fuelled vehicles, making their overall weight greater.

In the UK, category B licence holders can drive a vehicle of up to 3.5 tonnes, beyond which the vehicle is technically classified as a heavy goods vehicle (HGV) and would require a different class of licence.

As logistics businesses continue to decarbonise their operations in line with the 2050 net zero deadline, it is vital that operators can utilise their fleets without loss of payload capacity from using these greener vehicles.

To avoid hampering decarbonisation progress, in 2018 the UK secured a temporary five-year derogation from the European Commission which allowed category B licence holders to drive alternatively fuelled goods vans with a maximum authorised mass (MAM) of 4.25 tonnes.

After the UK’s departure from the EU this derogation was confirmed as permanent however, in 2022 the government consulted on changes to driving licence flexibility for alternatively fuelled vehicles.

In its response to the consultation, Logistics UK recommended DfT continue to allow all AFVs up to 4.25 tonnes to be driven on a category B licence and remove the further five hours mandatory training, for which members expressed concerns surrounding costs acting as a barrier to further AFV uptake.

In addition, the business group recommended these vehicles should be able to tow a trailer up to seven tonnes MAM.

Subsequent to the consultation, in October of this year, the Department for Transport (DfT) and Office for Zero Emission Vehicles (OZEV) responded to the consultation announcing that only zero emission vehicles (ZEVs) will be able to access the category B flexibility, the five hours compulsory classroom training requirement will be removed and ZEVs operating under the derogation will be able to tow a trailer up to seven tonnes MAM.

It was also announced that the flexibility will be permitted for all ZEVs up to 4.25 tonnes, not just those vehicles carrying goods, as this will simplify and streamline vehicle allocations for non-goods carrying sectors.

The new regulations require legislation before they come effect and this is subject to the parliamentary timetable, so the date for the changes is unknown, but is expected to be in this parliamentary session.

The decision to extend the derogation to all vehicle types, remove the compulsory training requirement and allow towing of a trailer up to seven tonnes MAM was encouraging for the sector, however the decision to remove low carbon fuels was disappointing as it will prevent immediate greenhouse gas emission savings to be made by operators that cannot fully electrify until the market can provide appropriate zero emission vehicles.

Logistics UK will continue to engage with government about the need for a clear strategy for low carbon fuels and fundamental reform of the regulatory weight thresholds, to support our industry as it undertakes the necessary transitions to meet net zero deadlines.