A Dundee company has said the launch of a grant offering drivers £5000 to switch to low-carbon vehicles will drive its business forward.
Axeon Technologies manufactures lithium-ion batteries used in electric cars.
Transport secretary Philip Hammond on Wednesday confirmed the “Plug-In Car Grant” would begin in January.
Motorists will be entitled to the £5000 grant if they buy an electric, plug-in hybrid or a hydrogen fuel cell car if it meets standards set by the Office for Low Emissions Vehicles.
The £43 million funding could help pay for 8600 cars, if each person receives the full £5000.
“The coalition government is absolutely committed to low-carbon growth, tackling climate change and making our energy supply more secure,” said Mr Hammond.
“This will ensure that the UK is a world leader in low-emission vehicles.”
Axeon chief executive Lawrence Berns said, “We are excited about the potential for the new clean energy but, as with all new technologies, early adopters will require assistance to make their purchasing decisions and the news that the coalition has maintained the grant in the face of its pressing task to reduce the national debt is greatly to be welcomed.”
Society of Motor and Manufactures and Traders chief executive Paul Everitt said, “This is great news for industry and a significant commitment by the new government to create UK jobs in the emerging market for ultra-low carbon vehicles.
“The UK is well placed to exploit the global opportunities in the transition to low carbon technologies and is already making significant progress through research and development, the low carbon supply chain and vehicle manufacturing.”
However, some environmental groups said the coalition government has put £43 million into the scheme 80% less than the previous Labour administration had promised.
Although both schemes would pay out £43 million in their first year, the scheme will be reviewed after its first year, whereas the Labour government said it would be renewed annually without review.
Vicky Wyatt from Greenpeace said, “Electric cars are one of the ways we can cut our dependence on oil and move towards a clean, green transport system.
“That’s why it’s good news that the government has announced this first chunk of funding.
“But if the government is serious about putting hundreds of thousands more electric cars on Britain’s roads, it’s vital that Phillip Hammond makes a long-term commitment and stumps up the full £230m, as promised by the previous government.”
Dr Sam Gardner, climate change policy officer at WWF Scotland, said more needs to be done to reduce emissions.
“We welcome this much needed support to encourage the purchase of electric and ultra-low carbon vehicles,” he said. “Although support is limited to just £5000 per car it marks a much needed signal from the new coalition government that it’s serious about tackling emissions from our transport system.
“However, the reality is that if we are really going to slash transport emissions then some additional measures and incentives will still be required.
“We need to see the Scottish Government’s recently announced funding in this area backed up with a commitment to make the public sector vehicle fleet entirely low carbon by 2020.
“This is the ambition we must see if we are to hit the targets required by the Climate Change Act.”
Image used under Creative Commons licence courtesy of Flickr user joelcgarcia.