EXCLUSIVE: As the government deliberates on bringing forward its ban of new sales of fossil fuel cars into the first half of the next decade, the Scottish energy company has called for a separate rule mandating corporate fleet decarbonisation by 2030
Energy giant SSE has urged the government to introduce a ban on diesel and petrol cars and vans across all corporate fleets in the UK by 2030.
A new rule mandating that all businesses switch their fleets from fossil fuel powered vehicles to zero emissions alternatives by 2030 would not only drive down transport sector carbon emissions, but it would generate economies of scale that would bring down the overall cost of fleet decarbonisation, the company said.
In a letter sent to the Department for Transport, SSE chief executive Alistair Phillips-Davies wrote: "We believe commitments from government on corporate fleets will be important in helping to reduce the costs of decarbonising fleets and addressing potential barriers, thereby encouraging other companies to follow the lead set by SSE."
SSE is one of just 27 UK businesses to have signed up to the Climate Group's EV100 initiative, which has seen the company pledge to decarbonise its 8,500-strong fleet by 2030.
In the letter, Phillips-Davies argued all businesses should be able to shift their fleets to electric models within 10 years. "Given that our fleet operates in some of the most remote locations across Great Britain, including the highlands and islands of Scotland, we believe the full decarbonisation of cars and vans across all corporate fleets in the UK is achievable within a decade," he wrote.
With half of new vehicles in the UK bought by corporates, the purchasing decisions made by businesses set the direction of travel for the broader industry. SSE estimated that if all UK businesses were to commit to decarbonising their fleets, roughly 1.5 million vehicles could be switched to EVs.
Phillips-Davies also stressed that a new mandate for corporate fleet decarbonisation could further strengthen UK climate leadership ahead of its presidency of the COP26 climate conference, set to be held in Glasgow in November 2021.
Transport is the most carbon intensive sector in the UK, accounting for roughly a quarter of all emissions. The government is reportedly deliberating on bringing forward the current 2040 phase out date for the sale of internal combustion engine vehicles by anywhere between five and 10 years, with an announcement expected later this month.
The DfT was considering a request for comment on SSE's letter at the time of going to press.
In related news, SSE this week announced it is to sell its interest in energy-from-waste plants in West Yorkshire for £995m, in a bid to to support its plans to ramp up investment in green infrastructure.
An infrastructure fund owned by First Sentier Investors is set to purchase the energy firm's 50 per cent stake in two operational plants at Ferrybridge and a third that is under construction at Skelton Grange, subject to the deal being approved by the European Commission.
SSE finance director Gregor Alexander emphasised that the sale would allow the company to reallocate funds into infrastructure aligned with the UK's 2050 net zero emission ambition.
"Our disposal programme demonstrates how the company can create value from our assets and supports our plans to invest £7.5bn over the next five years in the low-carbon infrastructure needed to stimulate a green economic recovery and help the UK transition to a net zero future," he said.