Guidance to help local authorities understand the benefits of fleet electrification and how to transition from petrol and diesel vehicles.

To achieve Net Zero, greenhouse gas emissions generated by providing council services need to be reduced significantly, requiring zero-emission fleet vehicles. Operating zero-emission vehicles (ZEVs) also demonstrates leadership on tackling air pollution and, due to their lower running costs, can generate cost savings for councils.

For fleet electrification, local authorities need to:

• identify which vehicles are suitable for replacement with electric vehicles (EVs).
• formulate a procurement strategy based on whole life costs.
• install chargepoints at council depots and review the options for charging.
• implement supporting measures, such as driver and mechanic training.

Why zero-emission fleets?

Fleets and businesses are responsible for over half of new car and van sales in the UK, according to the SMMT and many are at the forefront of ZEV adoption.

As highlighted in the government’s transitioning to zero-emission cars and vans: 2035 delivery plan and through the UK Electric Fleet Coalition, organisations have committed to switching over 700,000 vehicles to zero-emission by 2030.

The government has committed that 100% of central government cars and vans will be fully zero-emission by 2027, which is about 40,000 vehicles. It has committed to end the sale of new petrol and diesel cars and vans by 2030.

Like many others, local authority fleets need to develop and implement a plan to transition their fleet to ZEVs.

The plan should outline:

• which vehicles will be switched each year, reflecting the existing fleet renewal cycle.
• the models available from manufacturers.
• charging requirements and the cost-effectiveness of a ZEV fleet.

Many local authorities already have ZEVs as part of their fleet, so the next stage is to scale up plans and tackle the ‘harder to decarbonise’ vehicle classes, particularly heavier vehicles.

The benefits of zero-emission vehicles for fleets

For local authorities, switching to ZEVs can generate substantial cost and emission savings, as well as help to deliver Net Zero targets.

Impact on carbon emissions

ZEVs emit zero tailpipe emissions, but there are emissions associated with generating electricity for EVs.

Transport & Environment concludes that in Europe, battery electric cars currently emit on average 3 times less carbon dioxide (CO₂) than the equivalent petrol or diesel car, after factoring in emissions from electricity generation, car and battery production.

In the UK, CO₂ emissions from electricity consumption have fallen by about two-thirds since 2014 to reach 212g CO₂e/kWh in 2021, as less coal is used and more generated from renewable energy sources. Referred to as ‘carbon intensity’, this trend is set to continue enhancing emission savings throughout the lifespan of EVs.

As set out in the government’s net zero strategy, plans are to fully decarbonise the power system by 2035.

ZEVs are significantly more energy-efficient than petrol or diesel vehicles and the energy use (MWh) of an all-electric fleet will be up to 75% less than the equivalent petrol or diesel fleet.

In 2020, transport produced almost 24% of the UK’s total emissions, with 91% of this from road transport.

Cars and taxis account for 52% of the emissions from road transport, followed by 19% from heavy goods vehicles (HGVs) and 16% from vans.

Diesel-powered refuse collection vehicles (RCVs) often generate a substantial proportion of a local authority’s fleet emissions.

In 2020, environmental consultancy, Eunomia, estimated that replacing local authority operated diesel RCVs with electric would reduce carbon dioxide-equivalent (CO₂e) emissions per year from 330 kilotonnes to 40 kilotonnes.

Cost savings for fleets

Although ZEVs can currently cost more than their petrol or diesel equivalents to buy or lease, they can still be highly cost effective across their operational life for fleets, especially where the vehicles are travelling significant daily mileages and kept on fleet or leased for several years.

A whole life cost model calculates all the predicted costs of owning and operating a vehicle over its operational life. For example, this includes:

• the funding method (outright purchase or lease)
• the fuel or energy cost
• servicing
• vehicle excise duty
• other costs, such as National Insurance (NI) contributions when applicable

Offsetting higher lease or purchase costs of EVs

The cost of electricity is lower compared to petrol or diesel. Over a battery electric vehicle’s (BEV) operational life, the reduction in energy costs may be as high as 75%.

It is important to consider how vehicles are used when comparing costs. The more miles EVs are driven the more likely or sooner a higher lease or purchase cost is recouped in running cost savings. Where fleets or individuals (for company cars or vans charged at home) have access to a variable rate (time of use) electricity tariff, smart charging during off-peak hours can result in further cost savings.

EVs have lower servicing and maintenance costs compared to petrol or diesel. They are mechanically simple, with fewer components in the drive train and without a complex transmission and exhaust system. As a result, servicing and maintenance costs are lower, typically 40% less.

Over the extended operational life of eight to ten years, savings may be even greater as petrol and diesel vehicles can experience a rise in costs in later years. Regenerative braking in EVs also reduces wear and tear on the brakes. There are also various tax incentives available, which can enhance the business case for EVs, including:

• Vehicle Excise Duty
• Corporation Taxi Liability
• Benefit in Kind

EVs can be exempt from Clean Air Zones and the Ultra Low Emission Zone (ULEZ), as well as the London Congestion Charge (until December 2025).

For worked examples of whole life costs comparisons (correct as of 2020), see Energy Saving Trust’s step-by-step guide to electric vehicles for fleets. Some leasing companies and the Crown Commercial Service fleet portal will provide an estimate of whole life cost.

Additional benefits for fleets

For fleets, moving to ZEVs could also:

• deliver air quality benefits through reduced tailpipe emissions of nitrogen. oxides (NOx) and particulate matter, which have a harmful impact on health
• provide a smooth, quiet driving experience.
• encourage wider ZEV adoption through enhancing visibility and confidence – a positive experience of an electric pool car may encourage staff and the wider public to switch their private or company car to an ZEV.
• demonstrate the council’s leadership on the path to Net Zero and cleaner air.

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