1. Freight Transport Association
Chris MacRae
Freight Transport Association

2. Air Quality – the issue
Air quality massively improved – and will continue to get better…
…but impacts on human health being identified at lower and lower levels of NOx and PM emissions
UK in breach of legally binding targets for NO2
New Scottish Low Emission Strategy to
be launched 4 November; England/Wales
plan by end 2015
Local authorities to act
Slide 1 Air Quality – the issue
• Air quality is now a more high profile issue than ever before and is receiving much attention from Government, local authorities and the press.
• Demonizing diesel is happening more and more! Whilst diesel road vehicles are not the main culprit for local emissions, they do play a substantial part and it is likely that freight will receive the brunt of the attention and focus. Recent VW scandal has reinforced this.
• A key turning point this year was a case brought by Client Earth that took the UK to court for failing to meet EU air quality targets. They won, and the UK Government has to come up with a new plan by the end of the year to achieve their targets on improving local air quality. This work was happening already but the publicity brought by Client Earth has certainly meant more pressure.
• Scottish Government will launch their new Low Emission Strategy at a conference next week and a consultation from Defra for England and Wales has just been published to gather feedback.
• The effect of the Government policies will be to push local authorities into more aggressive action on air quality.

3. Air Quality – impacts on freight
Purchasing:
HGVs - Euro VI since 2014
Vans type approval Euro 6 now, new sales September 2016
Will Euro VI deliver?
Managing public relations/image
Contracts: emissions standards incorporated in procurements of major construction projects
Routing HDVs/HGVs away from
highly polluted routes
Slide 2 Air quality – impacts on freight
So what will be the effects on operators of commercial vehicles in the near future?
• Obviously we are all buying Euro VI lorries now. New type approval for vans is now set at Euro 6 too, and from next September all new vans will be required to meet that target.
• Though there is a level of concern about whether Euro VI deliver in practice
• On contracts, we are aware that to help with their planning permissions, High Speed 2 is planning to stipulate that all HGVs serving their sites in Greater London and possibly other cities, will need to be Euro VI from the start – so around This is the first such case we’ve heard, but we doubt it will be the last
• We will also have to watch for calls for lorries to routed away from certain busy roads – local air quality problems can sometimes be very local indeed and restrictions on heavy duty vehicles on affected roads is one approach campaigners are advocating.
• But the most likely impact will be from Low Emissions Zones – the blanket requirement that vehicles should be a certain Euro standard in order to be allowed to operate in a given urban area.

4. Low Emission Zones London Scotland Defra Clean Air Zone Framework
Central London Euro VI/6 ULEZ to come into force 2020 – or earlier?
Greater London LEZ to go Euro VI 2024/5?
Scotland
Low Emission Zone framework to be introduced as part of national Low Emission Strategy
To prioritise LEZs and timetable possible introduction
Push local authorities into Euro VI/6 requirements
Registration scheme for HGVs and vans?
Defra Clean Air Zone Framework
Plan to ensure consistent national approach
Slide 3 Low Emissions Zones
So, where do we stand on LEZs?
• You’ll be aware of the existing London LEZ, and the plans for a central London Euro 6 standard for all vehicles in However there is a Mayoral election in 2016 and several candidates are talking about trying to bring that date forward. Van operators, small HGV fleets and those with specialist vehicles will want to keep a close eye on that one.
• The next most likely area to see LEZs that affect freight will be Scotland, as the Government there is developing a framework for Low Emission Zones in that country and its Low Emission Strategy to be published next week will push local authorities down that route. We’d look at Glasgow and Aberdeen as locations where LEZs are most likely, at least as far as impacting HGVs is concerned – vans may be impacted more widely. The real question is the date. Their first draft Plan seemed to be looking at 2017/8 for start dates, we think this will move back closer to 2020, we’ll know more soon.
• One unwelcome aspect of this is the mooted idea that unlike London you would have to go through a registration scheme for each vehicle to demonstrate compliance – including putting a disc in every window. This is something we are pushing against.
• Beyond Scotland, Defra is now developing a framework for Clean Air zones – designed to enable local authorities to establish low emission zones but ensure a national approach so that it is more straightforward for businesses to operate across UK cities. The main implication for freight – both HGVs and vans - would be further Euro VI requirements in London and the West Midlands and West Yorkshire conurbations in around 2020, but there is no detail or certainty around this.

5. Actions – Air Quality Utilise Euro VI Utilise the off-peak
Consolidate loads
Driver training
Manage ancillary equipment
Alternative fuels and low carbon technologies
Slide 4 Actions – Air Quality
So that is what is going on, what can you as Transport Managers be doing about the issues today? Not just to be technically compliant but also to be able to demonstrate when asked that you as a company have considered the social impacts of what you do.
• To start with air quality, the first point is to purchase Euro 6 vehicles in time for 2020 to protect your ability to operate. But beyond this, we would recommend where you have Euro 6’s, seek to utilise these on the busiest urban routes now
• Talk to your customers about out of hours deliveries – traveling in less congested hours massively reduces emissions – just as it does fuel use, so well worth considering if possible
• Think about consolidating loads or be able to explain how you make use of consolidation. You’d be amazed how much the media, local people and politicians will assume consolidation never happens and has never occurred to anyone
• Driver training for fuel economy is not a new idea, but placing some emphasis on how to minimise emissions in urban environments would be a useful addition
• There are increasing questions about refrigeration units and other items of equipment – be aware of what you have and consider emissions as a factor when renewing equipment
• Finally the most dramatic option – and the one that would get you the most public attention and approval. Trialling alternative fuel vehicles and low carbon technologies – be it for example electric, hybrid, hydrogen or dedicated gas, it's well worth considering if not now, but in the future. Better models are slowly becoming available to make these a practical option in urban operations. Though we do note there needs to be more public refuelling infrastructure which FTA is lobbying for.

6. European Agenda for HGVs and CO2
European Commission White Paper (2011)
Target to reduce transport GHG emissions by 60% by 2050
Strategy to reduce HDV CO2 emissions (2014)
CO2 emission standards for new HDVs
Legislation expected in mid 2016
Computer simulation tool, VECTO to measure fuel consumption
and CO2 emissions
Mandatory limits on average emissions from new HDVs
could be potentially introduced, similar to car and vans
Concerns over accuracy and real world emissions
Slide 5 European Agenda for HGVs and Vans
Moving onto carbon....
• There are big ambitions and aspirational goals from the Commission to reduce transport GHG emissions by 60% by 2050 based on 1990 levels as part of its wider Climate Change Strategy.
• A strategy to reduce heavy duty vehicle CO2 emissions was published last year
• A key initiative has been proposed CO2 emission standards for new HDVs designed to help you, the buyer purchase the most CO2 efficient vehicle - legislation is expected in 2016
• A computer simulation tool, VECTO has been developed with the backing of manufacturers to measure fuel consumption and CO2 emissions.
For info only - This will cover the whole vehicle (including the engine, transmission, auxiliary elements, air drag, rolling resistance and also the trailer).
• In future, mandatory limits on average emissions from newly-registered HDVs could be potentially introduced, similar to car and vans but this is still to be decided.
• There are concerns over accuracy and real world emissions and potentially….
• A lack of understanding from policy makers who see that the largest vehicles emit the largest CO2 emissions – but don’t take into account how much freight can be moved when compared to a smaller vehicle.

7. • We have 110 members representing over 75,000 commercial vehicles
Actions: Carbon
Logistics Carbon Reduction Scheme
Free FTA voluntary initiative to record, report and reduce carbon emissions from freight transport
Provides evidence that industry can reduce CO2 without need for further regulation
Endorsed by Department for Transport
110 members representing over 75,000 commercial
vehicles
Join now
Slide 6 Actions - Carbon
• On carbon the best action you could take is to join FTA’s Logistics Carbon Reduction Scheme. This is great way to help make progress on carbon reduction but also to demonstrate to the public that you are doing this.
• It is a free voluntary initiative to record, report and reduce carbon emissions which has been running for over five years
• Provides vital evidence that industry can reduce CO2 without need for further regulation
• Endorsed by the Department for Transport and the Committee on Climate Change also recently supported the approach
• We have 110 members representing over 75,000 commercial vehicles
• Please consider joining, the more companies that participate, the stronger our voice

8. Energy Savings Opportunity Scheme
Under EU rules, companies with over 250 employees must conduct energy audits every four years
Or those with annual t/o circa £39 million and balance sheet circa £33.5 million
First audit must take place by 5 Dec 2015
but grace period until 29 Jan 2016
Covers transport and buildings
Purchased fuel for hgvs, vans, cars
Sub-contracted transport excluded
Slide 7 Energy Savings Opportunity Scheme (ESOS)
The main regulatory change affecting you right now will be ESOS audits
• Under EU Energy Directive requirements, in the main companies with over 250 employees must conduct energy audits every four years.
• ESOS is a continuous four yearly scheme but there has been a short run in time for the first set of audits and the deadline for the first audit must take place by 5 December 2015! However, there is a grace period until 29 Jan 2016 if you are having difficulty with meeting the deadline (this was announced on 8 Oct) - you have to be prepared to have evidence on why you have been unable to meet the December deadline e.g. unable to book a Lead Assessor in time
• This is not something new for FTA and we have also developed our own FTA ESOS offering.
• So this is really a reminder that if you haven’t taken action, you must do so now to avoid missing the deadline.
• ESOS covers transport and buildings including purchased fuel for hgvs, vans, cars but sub-contracted transport excluded
• The data collected for FTA’s LCRS is a good basis for ESOS

9. Points to remember Appoint a Lead Assessor, if you haven’t act now!
Recommendations do not have to be implemented
You must keep an evidence pack on file
Notify the Environment Agency online by December 2015 whatever the situation
Fines of up to £50,000 for non-compliance
FTA compliance briefing note in TM packs
FTA’s ESOS Audit offering
Slide 8 Points to remember
So briefly a few points to remember….
• You must appoint a Lead Assessor, this is a legal requirement and they must be listed on a Professional Register such as the Energy Institute to prove that they have the competency to act for you
• Strangely enough, recommendations do not have to be legally implemented but Government expects that companies will wish to adopt energy saving recommendations as a result of being audited
• You must keep an evidence pack on file of details such as the data compiled and the audit paperwork
• Note that Scottish Environment Protection Agency will be responsible for regulating the scheme in Scotland but you must notify the UK Environment Agency online by 5 December 2015 of either compliance or the reason for delayed compliance
• There are fines of up to £50,000 for non-compliance
• FTA compliance briefing note in Transport Manager packs including details of FTA’s ESOS Audit offering