New £30m fund for Green Buses

The Government has announced a new £30 million fund to encourage the purchase of low carbon buses. Increasing fuel efficiency from existing buses is an important outcome, but I and I am sure many people in St Helens who welcomed the introduction of our electric buses and who contact me about low-carbon technologies, will also be pleased that the Government wants to go further.

The fund is part of the Department for Transport’s wider strategy to encourage a radical shift to low carbon transport and improve air quality in our cities. We need to move over time to a greater penetration of hybrid, electric and fuel cell technology for buses, as with other road vehicles.

The new fund will provide £30 million worth of help so that bus operators and local authorities in England can apply for grants towards the additional up front cost of buying low carbon buses.

There are already a number of hybrid buses on the market, which can reduce carbon emissions by 30-40% compared to conventional buses. Low carbon buses also use at least 30 per cent less fuel. They therefore have the potential to significantly reduce the impact of road transport on climate change. They will also meet the most stringent air quality emission standards to help improve air quality.

But the high up-front costs of a hybrid bus in comparison with a conventional bus has been hindering up-take. The Government wants to ensure this barrier can be broken down and has already taken steps to do this. From 1 April 2009 operators of low carbon buses will receive an additional 6p per km as part of Bus Service Operator Grant (BSOG).

As more low carbon buses are produced and sold, costs will reduce. This will encourage bus technology and will stimulate the market for low carbon buses, an industry in which the UK is a world leader.

This investment will safeguard 900 jobs in the UK bus industry. Bidders will also be asked to provide details of how many new apprentices will be taken on as a result of their order. It will boost the development of a green technology market and encourage the development of new skills.

At present, low carbon buses make up just 0.2 per cent of buses on the road today .The fund is intended to put low carbon buses within the reach of as many operators and local authorities as possible throughout England.

Importantly these incentives pioneered by the Government will deliver the next generation of public transport our cities and communities need.