To achieve net-zero transport targets by 2050, several European governments are planning phase-outs of new diesel-powered heavy goods vehicles (HGVs) by 2040. Currently, diesel trucks dominate long-haul logistics, with zero-emission electric HGVs (e-HGVs) representing less than 1% of the active fleet due to prohibitive battery costs and limited charging infrastructure. To accelerate transition, a new Green Freight Subsidy of £2.2 billion has been launched, offering logistics firms up to 50% off the purchase price of e-HGVs and funding dedicated high-power charging depots. Policymakers hope this massive intervention will make zero-emission freight cost-competitive, inducing freight operators to phase out their diesel fleets.
Evaluate, using appropriate diagrams, the impact of subsidising zero-emission electric heavy goods vehicles (e-HGVs) on the market for conventional diesel freight trucks.
