UK Transport Decarbonisation: Policy Gaps, Hydrogen Setbacks and EV Fleet Milestones

Welcome to Net Zero News, your daily briefing on the UK’s transition to a low‑carbon future.

In recent months, multiple pivotal developments have shaped the net‑zero transport landscape across the UK. First, Zemo Partnership, backed by the European Climate Foundation, has commenced a project to map out “missing” policies necessary to accelerate the decarbonisation of road transport. This initiative builds upon the Delivery Roadmap for Net Zero Transport and seeks to identify policy gaps across the four UK nations, producing a set of timely recommendations. Consultation is underway until 23 May, with the final report scheduled for release in June 2025.

Meanwhile, a major setback has arisen in the hydrogen mobility space. The government‑backed HyHaul project, part of the ZEHID programme, is being terminated due to insufficient customer commitments for fuel cell heavy goods vehicles. Although progress had been made on four of the project’s work packages, the inability to meet milestones in customer and fleet leasing led Innovate UK and the Department for Transport to withdraw funding. The project’s termination underscores ongoing challenges in scaling hydrogen refuelling infrastructure and securing fleet uptake for zero‑emission HGVs.

In contrast, battery electrification continues to make headway in corporate fleets. Mitie has reached a new milestone by introducing its 6,000th electric vehicle, with nearly 73% of its fleet now electrified. This rapid acceleration, part of its ‘Plan Zero’ strategy aimed at achieving net zero operations by 2025, also includes the deployment of over 6,000 chargepoints across employee homes and client sites. Moreover, National Highways is reinforcing its commitment to corporate net‑zero by 2030, placing a substantial order for electric Toyota vehicles including 18 Proace Electric vans and 40 bZ4X SUVs in addition to its prior deployment of 50 bZ4X SUVs in 2024.

These developments reflect the broader context outlined by the Climate Change Committee’s Seventh Carbon Budget pathway. Transport is expected to deliver roughly 27% of the UK’s emissions reductions by 2040 through surface transport electrification. The plan envisages electrification accounting for 60% of total reductions, with substantial gains also coming from heat pumps and a decarbonised power grid. Notably, private sector funding is forecasted to deliver between 65–90% of the transition investment between 2025–2050, with public expenditure remaining below 2% of total public managed spending. The pathway also projects that household bills could fall by around £700 per year by 2050, while energy security will significantly reduce vulnerability to price shocks.

What this means:

The emerging policy mapping initiative by Zemo underscores that while progress is evident, key gaps persist in the roadmap to net zero transport particularly across the devolved administrations. Timely, integrated policy responses, especially on charging infrastructure and low‑carbon vehicle incentives, remain essential. Conversely, the collapse of HyHaul illustrates the fragile nature of nascent hydrogen solutions for heavy transport, highlighting the need for stronger market signals, customer incentives, and infrastructure to make hydrogen viable at scale.

Meanwhile, corporate fleet electrification is clearly gaining momentum, as seen through Mitie’s rapid transition and National Highways’ procurement drives. Such actions signal that where ambition meets capability, meaningful progress can be achieved. The broader strategic direction articulated by the Seventh Carbon Budget reinforces the importance of private sector investment in driving systemic decarbonisation while delivering cost savings for households.

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