Fleets call for tax cuts on 'clean' biofuels

Business leaders and environmental campaigners are calling on the Government to provide greater support to organisations seeking sustainable alternatives to diesel fuel.

More than 30 industry leaders, including representatives from large fleets, have urged ministers to cut duties on clean replacements for diesel.

Despite an increased focus on rolling out electric vehicles, the group states that fewer than 5% of the UK’s required electric vehicle charging capacity currently exists. Industry leaders argue that Government should support cleaner fuels while EV infrastructure is developed.

Julian Keites, director of sustainability at Green Biofuels, said: “Electric vehicles are not the be all and end all of sustainable transport, and scrapping existing vehicles is not a green solution.

“Sustainable alternatives to harmful diesel fuels – used particularly in heavy goods vehicles, trains and maritime – have a vital role to play in rapidly cutting greenhouse gas emissions and improving air quality.

“The collaboration of support shown by uniting these diverse range of business leaders and environmental campaigners demonstrates the positive and practical role advanced biofuels play in the future of the UK’s transition to net-zero.”

In a letter to Transport Minister Jesse Norman, the group cites the “urgent imperative” to reduce harmful pollutants, with one in 20 deaths across the UK directly attributed to poor air quality.

The letter states: “while some incentives do exist in the UK, these do not achieve price parity with diesel. As such, we believe your department, in collaboration with the Treasury, should look at reducing duties and creating tax incentives to catalyse the switch to renewable diesel.”

The UK transport was responsible for 27% of all emissions last year but advanced biofuels could cut greenhouse gas emissions from the sector by up to 90%.

Led by Green Biofuels, the letter argues price reductions in renewable diesel fuel can be achieved at no cost to the taxpayer, with consumers encouraged to switch to sustainable alternatives by creating price parity with diesel.

Signatories of support come from firms such as Skanska and JW Suckling Transport.