A breath of even fresher air? Acquiring assets as emissions standards tighten

01.02.21

The Society of Manufacturers and Traders (SMMT) has been taking a close look at the changes in emissions standards that are in the pipeline for the road transport sector.

In a message to its members, the SMMT noted that, while Euro 6 standards have made a significant contribution to improving air quality over their predecessors, there’s ‘more work to be done’ as new and even more ambitious targets come into view.

It seems that policymakers might be looking at far tougher Euro 7 standards than previously anticipated. Although at this stage nobody knows what will finally be involved, it’s understood that currently unregulated substances such as ammonia (NH3) will be included. Also expected is a more consistent testing regime across engine types and, possibly, a lifetime compliance requirement.

There will, of course, be significant additional costs associated with any changes. For a COVID-19-restricted industry in the midst of adjusting to new demands on moving goods in the post-Brexit market, this is yet another challenging economic and operational consideration.

The current task of reducing emissions has seen a quickening of the pace for new electric and hybrid LCV models coming to market, alongside gas alternatives, with hydrogen still looming large in the background.

In its valuable message, the SMMT points out that ‘policymakers need to carefully consider the best steps to facilitate fleet renewal during this transitional period.’ To be fair, I think this is something UK transport operators have been doing for some time now, but the SMMT is right to underline the point.

Right across our Dawsongroup businesses - from vans to trucks, trailers, buses, coaches, sweepers, forklifts and more - we see a growing trend among companies to embrace rental, leasing and contract hire as the flexible and economic way to acquire and manage these key assets, while also using short-term rental to plug any gaps during busy seasons.

They are realising increasingly that owning assets is more often a liability than a luxury – and they are right!

John Fletcher, Managing Director

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