Finance Monthly - October 2021

48 Finance Monthly. Bus i ne s s & Economy his petrol and diesel ban could help cut car emissions to 46m tonnes of carbon dioxide by 2030, down from an equivalent of 68 MtCO2e (metric tons of carbon dioxide equivalent) emitted today. The sale of electric vehicles has increased in the UK by 185.9% year on year; however, the majority of cars that are imported from other countries still have an internal combustion engine (ICE) – meaning they are either petrol, diesel, or hybrid. Around 26 countries are huge exporters of ICE vehicles to the UK, including the Czech Republic, Turkey, South Africa, Poland, and Italy. In the Czech Republic, the car industry accounts for 9% of the country’s gross domestic product (GDP). 154,468 petrol and diesel models were exported to the UK in 2019. Challenges posed While yes, the move to electric vehicles will drive down global emissions, which is becoming a crucial consideration for governments and populations worldwide following the United Nations’ ‘code red for humanity’ climate change warning, it will be expensive. Road Haulage Association Managing Director Ttold Sky News that alternative fuels for transport such as hydrogen and electricity will be too costly or won’t offer enough range. For such a drastic shift to a different method of fuel, there needs to be less doubt and more certainty for something that is hugely relied on. McKenzie commented: “This proposal is unrealistic. Alternative HGVs don’t yet exist. We don’t know when they’ll exist, and we don’t know how much they’ll cost, and it’s not clear what any transition will look like. “So this is blue-sky thinking way ahead of real-life reality. For many haulage companies, there are big fears around the cost of new vehicles and a collapse in the resale value of existing ones.” Businesses involving heavy goods vehicles will be faced with many significant challenges – it will likely take a while for the price of alternative HGVs to be Rod McKenzie Managing Director Road Haulage Association