Low Carbon Vehicle Partnership Steering Group Meeting

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1 Low Carbon Vehicle Partnership Steering Group Meeting Wednesday, 9 April at Shell, Elizabeth House, York Road, London SE1 7NQ SG-M MINUTES Attendees Andrew Eastlake - Millbrook/CHAIR Andrew Everett TSB Bob Bryson ADL Caroline Watson EST Emma Cliffe DfT Freya Latimer LowCVP Greg Archer LowCVP Harry Morrison Carbon Trust Jessica Chalmers LowCVP Jonathan Murray LowCVP Malcolm Watson UKPIA Nick Blake Mercedes-Benz UK Stephen Powton DfT Tim O Brien TSB Apologies Andrew Mair - FTA Chris O Keefe Toyota Chris Walsh Cenex David Greenwood Ricardo Nicholas Lee PSA Nigel Underdown EST Tanya Morrison Shell 1 Welcome & apologies The Chair welcomed members and apologies were noted. 2 Minutes and matters arising The Chair reviewed the minutes and actions. The minutes were accepted as an accurate record of the meeting. Actions were noted as complete bar the expansion of the BERR one-pager. Action: Secretariat to expand further upon the BERR one-pager based upon Ashley Roberts presentation to the Board and circulate to the Steering Group. 3 Secretariat Report The Director gave an overview of the LowCVP activities as outlined in paper SG-P The following were highlighted: LowCVP 5 th Anniversary LowCVP Chairman, Graham Smith, awarded OBE in New Years Honours list Biofuels sustainability activities influence global debate LowCVP invited to participate in the COMPRO project to procure low carbon buses Director meets with Liberal Democrat Shadow Transport and Environment Ministers.

2 The need for the Secretariat to move again was also brought up, with the Director indicating that it was the intention to remain within the Victoria/Westminster area although the exact premises were yet to be found. It was also noted that it was likely that the cost of leasing an office would increase significantly however this rise has been accounted for in the budget for this financial year. 4 Membership fees update The Director provided an update regarding the progress surrounding the introduction of membership fees as laid out in paper SG-P The Board had agreed to membership fees on 4 conditions: Fees to be set at the low level All members to become partners by 2010 Trade organisations may make a collective contribution on behalf of their members In-kind contributions must directly benefit LowCVP, relate to its agreed work programme and be agreed in advance. It was flagged that the Secretariat were still awaiting the proposal from SMMT regarding a collective payment. The proposal will be put to the board upon receipt. 5 Low Carbon Vehicle Innovation Platform Andrew Everett and Tim O brien from TSB gave an overview of Programme 1. The Low Carbon Vehicle Innovation Platform was formed in the summer of 2007 and issued its first call for proposals on 21 st September There was a two stage process for selection of proposals, firstly outline proposals had to be submitted by 12 th November. Those who were invited to submit to the second stage had to provide a full proposal by 28 th January It was expected that offer letters going out to successful candidates April A significant level of interest was demonstrated in the competition with 55 projects, to a funding value of 76m, being invited to complete outline applications with 38 passing on to the full stage (funding value 58m). 119 separate organisations involved in the application process overall. 16 projects were finally successful in their applications (funding value 23m) comprising of 58 separate partners with an average funding level per project of 44%. The funding for these proposals was provided from three sources as follows: 10m LCVIP 12m DfT 1m Energy KAA Successful applications were received from all sizes of organisations (OEMs to smaller organisations) and covered a wide range of technologies. Projects are due to commence around June. A comprehensive list of funded projects will be made publically available late April/early May. The Director raised some concerns as to the transparency of the selection process but was assured that an outline as to the process had been always in the public

3 domain and that all candidates had been made aware as to what was involved and their briefing sessions. TSB went on to outline Programme 2 Low Carbon Vehicles Integrated Delivery Programme with the aim of encouraging a forward commitment approach combining basic R&D with full fleet demonstration. Programme 2 is looking to provide funding support up to a project value of 200m over 5 years. 70m funding has been secured to date, although this figure is hoped to rise to 100m by the autumn. The existing funding has been committed from the following sources: 20m TSB 10m DfT 10m EPSRC 30m Advantage West Midlands (to be spent in region) A preannouncement for this programme is planned for May 2008, followed by an official launch in Autumn 2008, with projects due to commence 2009/10. It was highlighted that Programme 2 was for the sole purpose of funding 2009/10, there will be further programmes with alternative emphasis over the life of the Low Carbon Vehicle Innovations Platform. The Director offered the assistance of the Partnership wherever required. It was also underlined that knowledge of the 70m public funding was already in the public domain and that all additional monies would be coming from the private sector. The Director asked as to when the review of the KTNs was due to commence to which the answer was June/July. Although it was noted that the Low Carbon KTN has been extended to March Work programme update The Deputy Director summarised the current status of the work programme as outlined in paper SG-P The status of the Commercial Vehicle Working Group (CVWG) was raised and it was explained that the activity of the CVWG had been reduced to bi-annual seminars with no specific work programme as the view was that fundamental reseach is required before taking the programme forward usefully. Nick Blake demonstrated some concern that a clear direction was still needed regarding commercial vehicles and that, although light commercial vehicles were being touched upon by PCWG, some organisations are not involved in passenger cars. Bob Bryson added that commercial vehicles was too large an area for the Partnership not to have a stance on. It was suggested that this issue be taken offline and reviewed. Action: GA to meet with NB to discuss future of commercial vehicles work programme. 6.1 Low Carbon Bus Procurement Feasibility Study The results of the Low Carbon Bus Procurement feasibility study, detailed in paper SG-P-08-06, was presented by the Deputy Director.

4 It was asked whom would be taking forward the recommendations laid out by the study. The LowCVP will be taking forward some specific recommendations, but there a number of organisations which could lead in this area. As funding support is required for the procurement of the low carbon buses the organisation providing the funding would be the obvious choice to lead the progression in this area. 6.2 Biofuels Sustainability Label Survey and Feasibility Study JC outlined the preliminary findings on the feasibility study regarding a sustainability label for biofuels detailed in paper SG-P The question was raised as to how this fitted into tradable credits. It was suggested that RFA reporting could be used as the basis for tradable credits and with regulation could create something of real value. It was cautioned that there might be potential for double counting of carbon credits. The findings are due to be presented to the FWG this month. 7 Ongoing and proposed activities in response to the King Review The Deputy Director gave an overview of the car advertising survey and the green claims guide work detailed in paper SG-P It was noted that bar a fairly large tranche for 4x4s compared to their market share, there was little bias in advertising spend towards higher emitting vehicles. It was also noted that there was an increasing trend in car advertising to include a CO2 message in body text. The DfT found this interesting considering that in general consumers do not find CO2 messages meaningful. It was noted that there is no agreement as to how to incorporate CO2 messages into adverts, one approach being considered is a rating for CO2 similar to that of NCAP for safety, which might help consolidate the message. It was asked what proportion of car ads have misleading messages. While specific figures were not available the Partnership is aware that the Advertising Standards Authority (ASA) were receiving a high number of complaints relating to green claims in all ads, including car adverts. It was confirmed that the approach agreed was to provided better clarity of best practice regarding green claims in car advertising based upon the existing regulatory framework. In addition it was hoped to influence the development of the ASA codes of practice which were under review. It was suggested that the guidelines could be expanded to cover fuels as there may be a desire for green claims to be made in this area in the future. GA indicated that the focus would remain on cars at this point but that this could be looked into in the future at this time, the Partnership is unaware of any complaints against fuel advertising however it is on the increase for cars. However, the ASA codes would cover fuels as they apply to all goods and services. 8 Work programme 2008/9

5 The Deputy Director outlined the work programme for the forthcoming year. It was asked which of the King Review recommendations the Partnership would be covering with the work plan. Action: GA to re-evaluate work programme, reassess priorities and map to King recommendations HM offered to share the information/research undertaken by the Carbon Trust in the area of biomass. Passenger Car Work programme priorities 08/09 were indicated as being items 1, 2, 4, 6 and 7 from paper SG-P addendum. DfT stated that they saw item 8, Dashboard Technology, as a very low priority as this really should be considered at a European level. EC went on to state that the DfT would welcome a Partnership opinion on colour coded tax discs. The Steering Group agreed the priorities as laid out for the work programme. 8.1 Evaluation of the opportunities for high blend biofuel and biomethane markets in the UK JC outlined a proposal for this cross cutting study detailed in paper SG-P The project would be overseen by a cross working group with the final report to be delivered in October Some concern was raised regarding the biofuel element given the current uncertainty regarding sustainability however it was indicated that it was not appropriate to work on inconclusive information. It was suggested that cost should be assessed as part of the study, a position supported by NB who went on to highlight the serious cost implications for heavy haulage. NB was enthused at the Partnership s intention to look further into biomethane and offered his services as part of the advisory group. Further comments were invited in writing to JC. 9 Annual Conference 2008 The Director outlined plans for the 2008 LowCVP Conference as per paper SG-P Both the EU Commissioner and Ken Livingston have declined invitations to speak however there is a possibility of going back to Mr Livingston upon the conclusion of the mayoral elections. Ruth Kelly has also been invited to participate her response is pending. The content should be finalised in the next few weeks. EST offered to provide a speaker on the review of fleet advice or European work on eco-driving if required. 10 Board meeting draft agenda The Director presented the proposed Board meeting agenda (SG-P-08-10).

6 11 AOB The Director thanked all those present for attending however expressed concern at the falling attendance. Action: GA to meet with AE to discuss possible restructuring/role of Steering Group It was asked who would be the owners of the Partnership upon incorporation with the Director informing that the owners would be the members. It was also asked whether SMMT would be an owner on incorporation or whether its members would be. It was explained that both SMMT and its members would be owners. The next LowCVP Steering Group meeting will take place on 2 July 2008, EST, 21 Dartmouth St, London, SW1H 9BP

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