UK’s Green Investment Bank Considers Backing Fleet Purchases of Plug In Vehicles

Nissan LEAF in the UK

APR 22 2014 BY ERIC LOVEDAY 2

Vauxhall Ampera

Vauxhall Ampera

The UK’s Green Investment Bank has announced that it plans to help businesses and the public sector deploy new fleets of low emissions vehicles, including plug in cars and buses.

Green Investment Bank is trying to secure  £3 billion in capital from private investors.  Some of that funding will go towards electric vehicles.

As Business Green reports:

“…the bank was now considering plans to invest in low carbon transport infrastructure, specifically new electric recharging networks for large fleets of low emissions vehicles.”

The Green Investment Bank is expected to make a final decision within the next three months on whether it regards the technology as financeable and fits into its mandate to back green technologies. A positive decision could offer a major boost for the low carbon vehicle market, which despite its recent growth, still requires major new investment in transport infrastructure to deliver a transformational shift to low emissions vehicles. It would also raise the prospect of new financing options for public transport and corporate fleets that would otherwise struggle to cover the upfront cost of switching to a greener fleet.”

So, it seems Green Investment Bank will do two things to promote electric vehicles:

  • Install public charging infrastructure
  • Provide financing options for the purchase of electric vehicles

Surely Green Investment Bank will need to make a profit on both counts, but still it shows more support could be coming for plug in vehicles and that’s the real plus here.

Source: Business Green

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2 Comments on "UK’s Green Investment Bank Considers Backing Fleet Purchases of Plug In Vehicles"

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(Eric, take a look at your last sentence)

Are there EV incentives in the UK right now? If it’s some kind of tax credit like the US, maybe the bank could loan the $ to get the tax credit up front, then pay it back later with a little interest when they get their tax returns. (Warning: I have no idea how income tax works in the UK)

I wouldn’t worry too much about not understanding the tax system few people do. The benefits you get from buying/owning a BEV in the UK are: Less sales tax, 5000 pounds price cut to the asking price, no road tax (ever), no congestion charge. Note only the 5000 pounds is specifically for plugin’s with the others being available for low emission cars (under 100g of CO2/km changing soon to 75g) The green bank is really related to the corporate world. They could only really help by providing low cost finance. IMO this would have quite a significant effect on the UK car market where a disproportionately large number of new cars are purchased by fleets and then sold on to the public second hand. I have a feeling that this is a sneaky way of subsidizing the car market without subsidizing the car market but I would have to have a look into who pays what tax on new cars before making too many wild claims. For reasons I have never really understood often small changes in the UK tax/benefit system can have a really big effect so lets hope this is one of those things that tips the balance… Read more »