Government invests £200 million to drive innovation and get more zero emission trucks on our roads

Published: 18 October 2023
By Chris Haycock

• new funding to roll out up to 370 zero emission trucks across the country
• investment will help deliver on our net zero commitments, create new jobs and grow the economy while also avoiding food price hikes caused by fluctuating petrol costs
• more than £2 million also set to be given to small and medium-sized businesses in a separate competition to boost innovation and green tech in freight

More zero emission trucks are set to drive on UK roads thanks to a £200 million boost to decarbonise freight vehicles, drive innovation and create new jobs as part of a week of government action to support the sector.  

With heavy goods vehicles (HGVs) alone contributing 20% to all transport emissions across the UK, the £200 million in government funding announced today (19 October 2023) will be invested across 4 innovative green projects to roll out up to 370 zero emission HGVs and help set road freight on the path towards net zero, driving innovation and creating new jobs.  

Delivered in partnership with Innovate UK, the £200 million government investment from the zero emission HGV and infrastructure demonstrator programme will also deliver around 57 refuelling and electric charging sites, providing the crucial infrastructure to help the haulage sector decarbonise. 

Roads Minister, Richard Holden, visited Voltempo in Birmingham yesterday – one of the recipients of the £200 million – whose eFREIGHT 2030 project is set to create up to 200 new jobs by 2030 and provide Birmingham with one of the UK’s first electric vehicle charging hubs dedicated to HGVs.

The funding will help popular grocery companies such as Sainsbury’s and Marks & Spencer lower their transport emissions while protecting them from rising delivery costs associated with changing petrol and diesel prices. This could help prevent price hikes across supermarkets, allowing people to save money on food and groceries to help with the cost of living.  

This funding comes as part of the government’s commitment to make the right long-term decisions for a brighter future. Decarbonising the freight sector is a key part of building a sustainable future for the industry and achieving our net zero commitments in a fair and pragmatic way that lowers costs, creates jobs and grows the economy.  

Roads Minister, Richard Holden, said:? 

Freight and logistics are the beating heart of our economy and it is only right that we celebrate the sector so that it gets the recognition and support it deserves. 

Decarbonisation Minister, Jesse Norman, said: 

The UK is at the forefront of the global transition to net zero and today marks another important milestone to decarbonise freight, one of the economy’s most vital industries.

The measures come during a week of action from the government, including ministers visiting multiple freight stakeholders, to understand how the sector can continue to drive innovation and play a crucial role in creating new jobs, growing the economy and helping the UK get closer to net zero. 

Richard Smith, Managing Director of the Road Haulage Association, said:

We strongly welcome today’s announcement from the government on the zero emission HGV and infrastructure demonstrator programme.

This week has also seen the publication of the zero-emission vehicle (ZEV) mandate. This sets out the percentage of new zero emission cars and vans that manufacturers will be required to produce each year up to 2030 as part of a new pragmatic and realistic pathway to 100% zero emission vehicle sales from 2035.  

Indro Mukerjee, CEO of Innovate UK, said:

As the UK’s innovation agency, Innovate UK is committed to supporting innovative UK businesses working to decarbonise the UK’s road freight industry.

To further drive innovation in freight and logistics, an additional £2.4 million has also been unlocked through the second round of the Freight Innovation Fund (FIF). As part of the fund, the FIF Accelerator – open for applications from today – will help up to 10 small and medium enterprises develop new ways to make freight greener, more efficient and more resilient. 

The £7 million, 3-year FIF aims to scale up and roll out innovative technology across the industry to decarbonise freight. It is at the heart of the Future of Freight Plan, the first-ever cross-modal and cross-government vision to help the industry improve planning, boost innovation in data and technology and facilitate the transition to net zero.?? 

The first round of the FIF supported a series of groundbreaking projects, from using drones to deliver mail and services to the Orkney Islands, implementing AI and data to reduce costs, to deploying zero-emission technology to track and move freight across London.? 

Nicola Yates OBE, Chief Executive Officer at Connected Places Catapult, said:

Freight is a crucial sector for the UK and contributes around £127 billion to the economy, but it is not without its challenges. Reducing the sector’s carbon footprint, cutting journey times and easing traffic congestion are key areas of focus, alongside the development of efficient and better-connected logistics hubs.

Freight Week will also see the launch of 2 calls for evidence to continue exploring new ways for the freight industry to decarbonise and become more efficient. 

The first is the call for evidence to inform and support the Development of the zero emission HGV and coach infrastructure strategy, which is due to be published in 2024. This will ensure the delivery of the infrastructure required to meet the 2035 and 2040 phase-out dates for non-zero emission HGVs.  

The second is the call for evidence on Volumetric concrete mixers (VCMs), which will consider whether a temporary weight allowance should remain, be removed or amended for the vehicles beyond the current deadline of 2028.?It will consider the best options to reduce waste, limit costs and ensure fair competition while taking into account how to