CfIT proposes speed limiters for company cars

Date: 14 September 2007

The report, Transport and Climate Change, highlights the CO2-based company car tax as an environmental success and calls for it to be stengthed.

"There are signs that the effect is slowing down, not least as the regime was not strengthened in the recent Budget," claimed the report. "Further carbon benefits could result from removing the current penalty on diesel existing within the current company car tax structure. In order to mitigate possible disbenefits to air quality, we recommend this be considered following introduction of Euro5 emission standards. CfIT is also aware of a current consultation by HM Treasury on mileage allowance payments. We would encourage reform of the personal mileage allowance system into bands related to CO2."

The CfIT is considering the effects that the introduction of a voluntary intelligent speed adaptation (speed limiter) system across the road network would have in reducing deaths and injuries on the UK roads and in reducing carbon emissions, according to the report. The Speed Limit Adherence and Its Effects on Climate Change and Road Safety research project will be completed in summer 2008.

Other report proposals include:

• A mandatory EU CO2 target for new car sales of 100g/km but with a deadline (2020) that allows a more cost-effective response by the industry
• An incentive and reward approach to promoting more efficient use of cars through the price of fuel, greater promotion of eco-driving and better enforcement of speed limits
• More intensive promotion of smarter choices to encourage take-up of alternatives to car travel supported by improvements to the carbon performance of public transport
• Measures to capture the significant opportunities for carbon reduction in van and lorry fleets.

Subscribe