Labour government has work to do to decarbonise the van and logistics industry, warns BEDEO ahead of UK Budget

BEDEO, a leader in fleet electrification and retrofit technology, is urging the new Labour government to increase support for the UK van fleet industry in the upcoming 30 October Budget. With just over two months remaining before year-end, the sector faces growing challenges in meeting the Zero Emission Vehicle mandate for electric van sales, a key issue as LCVs are now the largest polluters in the logistics industry, according to a recent McKinsey & Company report**.

Osman Boyner, Founder and CEO of BEDEO, said: “Back in March [2024], the outgoing Conservative government failed to recognise or support the van fleet industry in its Budget. Now the current Labour government must act. We are currently 50 per cent off the target for the ZEV mandate for new electric light commercial vehicles (eLCVs) in 2024. Market share is down to 5.1 per cent from 5.6 per cent in 2023* – it needs to be 10 per cent. Retrofitting diesel vans with electric drivetrains can help, but as a tool to electrify, retrofitting needs recognition and support. Electric retrofitting for vans is a crucial solution for businesses, especially as they [businesses and fleet managers] grapple with costs and operational concerns when transitioning to brand-new electric vans – it just makes sense to retrofit what’s already there to run on electric power.”

BEDEO is urging the Government to expand support for retrofitting, which remains an unregulated and unsupported method despite being one of the most cost-effective and least disruptive options for fleet operators and SMEs. BEDEO’s proprietary Reborn Electric solutions can unlock many benefits for fleet owners including lowering total cost of ownership, a reduction in tailpipe emissions, lowering carbon emissions at a vehicle manufacturing level, plus the ability to retain the original vehicle’s fit out.

Available in pure electric form, the BE models can either be fitted with a 37 kWh, 75 kWh or 110 kWh battery, which provides drivers with 117 km, 248 km or 364 km WLTP range respectively. Whereas the range extender RE-100 retains the original diesel engine and adds a 37 kWh battery to provide 117 km of electric range and 600 km through its range extender. The RE-100 provides the ability for fleets to travel in towns and cities on electric-only mode and utilise the original (often Euro 6 standard) diesel engine to drive to and from the out-of-town depots.

Osman Boyner, Founder and CEO of BEDEO, continued: “The upcoming Budget presents a real opportunity for the new Labour government to introduce comprehensive incentives for retrofitting, following the lead of France, where financial backing has rapidly decarbonised van fleets. With the right support, the UK could do the same. This is the quickest and most affordable way for businesses to meet net-zero targets. If we don’t invest in electric retrofit for vans now, I believe the UK will miss a critical opportunity to significantly reduce emissions while promoting a circular economy.”

France’s fleet decarbonisation efforts, which offer subsidies of up to €8,000 per retrofitted vehicle, serve as a blueprint for the UK to follow. BEDEO is urging the UK government to introduce similar financial incentives and streamlined regulations to drive the electrification of van fleets, ensuring the UK keeps pace with its European neighbours and accelerates its progress towards net-zero goals.

A study by ADEME, France’s Environment and Energy Management Agency, found that retrofitting can reduce greenhouse gas emissions by up to 87 per cent***. With over four million vans on UK roads, many of which will remain operational into the 2040s, the potential environmental impact is significant. BEDEO’s Reborn Electric range offers a solution for fleet operators, providing zero-emission alternatives without the high costs of replacing entire fleets.

BEDEO’s recent whitepaper**** highlights key barriers, including cost and limited availability, preventing fleet operators from fully embracing electrification. BEDEO believes the upcoming Budget is a critical moment for the UK government to address these challenges through targeted policies. It urges government officials and policymakers to read the whitepaper to understand the power and efficiencies of electric retrofit, not just to boost eLCV numbers, but also to increase UK jobs and reposition the UK as a leader in van fleet electrification.

To access the full whitepaper and learn more about the imperative for investment in retrofitting solutions, visit bedeo.tech/whitepaper-accelerating-the-transition-supporting-our-businesses.

*          LCVs Registrations SMMT News
**        Decarbonizing logistics: Charting the path ahead
***      Etude Retrofit
****     Accelerating the Transition: Supporting our Businesses