Pay as you pollute – new tax demanded by HVS

Time to charge companies based on their vehicle's carbon pollution footprint?

UK-based HVS (Hydrogen Vehicle Systems) is looking to help clean up the UK's air even quicker, by calling for the implementation of a ‘pay-as-you-pollute' carbon-based pricing scheme on fossil-fuelled heavy vehicles. The idea is that if commercial operations are charged for every kilo of carbon their vehicles emit, then it will expedite the transition to clean technology. HVS believes that setting carbon reduction targets alone will be insufficient, unless they are accompanied by stronger policy measures. Is ‘more tax' the way to go?

The call comes in response to a letter signed by over 40 prominent companies (including Nestle, Pepsico, and Nike), which was sent to the European Union (EU) this week. The letter urged European policymakers to draft more ambitious CO2 standards and accelerate the production of zero-emission electric and hydrogen trucks at scale. HVS emphasizes the need for strategic policy proposals to complement the targets set.

As it stands, Daimler believes that it will have a complete set of CO2-neutral vehicles available by 2039 and Volvo says that it will hit 50% by 2030, with a full range by 2040. Volvo's most recently reported sales figures say that less than 2% of the trucks it's presently shipping to the UK, Europe and the UK are electric.

To effectively reduce emissions, reach targets and accelerate the adoption of clean heavy goods vehicles, HVS proposes a series of ‘policy levers'. It advocates for a new taxation through the implementation of a carbon emissions price escalator on fossil-fuelled vehicles, following the principle of ‘making polluters pay'. This initiative would gradually increase the price of diesel, incentivising the adoption of zero-emission and alternative fuel vehicles by making their total cost of EV ownership more favourable.

HVS was founded in the UK back on 2017 with similar aims to those of Equipmake and Volta. Specifically, to create a disruption in the commercial vehicle industry through innovative powertrain design and ground-up production of advanced zero-emission commercial vehicles. HVS focuses on fuel cells designed to be coupled with a green hydrogen source.

In addition to the call for a new carbon-pollution tax, HVS is also calling for EU-wide support for operators purchasing zero-emission vehicles – based on their emissions from well to wheel. Furthermore, the company suggests the implementation of more comprehensive road pricing scaled to carbon emissions. These measures would strengthen the economic case for early adoption and drive faster uptake of sustainable solutions.

HVS aims to be at the forefront of developing cleaner haulage solutions. The company's 40-tonne zero-emission Heavy Goods Vehicle (HGV) boasts a class-leading 370-mile (600-kilometer) range, significantly contributing to the transition to zero-emission hydrogen commercial transportation.

The manufacturer is looking for stronger regulations for the EU's 2030 CO2 reduction mission – specifically to move the target from 45% to 65%, which it believe will drive greater progress. By taking proactive measures sooner, the coalition behind the letter to the EU, aims to see over 150,000 additional green trucks on Europe's roads in 2030 compared to the European Commission's proposed target.

With a clear phase-out date for internal combustion engine (ICE) heavy trucks, the industry would have a definitive timeline for transition, providing clarity and direction to manufacturers, fleet operators, and other stakeholders.

Jawad Khursheed, CEO of HVS, expressed the urgency for the transition to zero-emission heavy goods vehicles. He stated, “We need to do more than simply call for carbon reduction targets – these must be backed by a series of policy levers to effectively deliver them, which is why HVS believes the best approach is for carbon pricing”.

“The polluter must pay, whether that’s through escalating fossil fuel prices, EU support for operators buying zero-emission heavy vehicles based on well-to-wheel emissions, and more comprehensive carbon-based road pricing.”

HVS' hydrogen-electric HGV features advanced technology, including a fuel cell stack that enables longer range, higher load-carrying capacity, and faster refuelling compared to battery-electric technology alone. The vehicle's powertrain also incorporates a Kinetic Energy Recovery System (KERS) to recapture energy under braking and deceleration. HVS' advanced control system ‘SEMAS' monitors interactions between drivers and control systems, delivering class-leading fuel efficiency and durability. The HGV emits only water vapor, ensuring zero greenhouse gas emissions.

HVS projects that, based on conservative sales projections, the new fleet of hydrogen HGVs in the UK could prevent more CO2 and noxious air emissions than the reported annual emissions of Heathrow airport by 2030. if true, this would highlight the significant potential environmental benefits of adopting green hydrogen as an infinitely renewable fuel.

Green hydrogen, the fuel used by HVS' vehicles, is produced using renewable electricity to split water into hydrogen and oxygen. In the fuel cell, hydrogen recombines with oxygen from the air to produce heat, power, and water. According to Khursheed, the UK is a leader in green hydrogen production, supply and storage.

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