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The Road to Net Zero

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The Road to Net Zero TRANSPORT IN SCOTLAND The road to net zero CONTENTS ABOUT ADDLESHAW GODDARD ABOUT ADDLESHAW GODDARD 1 WORKING ACROSS THE TRANSPORT SECTOR 1 FOREWORD 2 IMAGINATIVE SOLUTIONS TO PIVOTAL BUSINESS PROBLEMS EXECUTIVE SUMMARY 4 TECHNOLOGY 6 Good business depends on good advice. Which, ultimately, comes down to four words. Yes. No. Stop. Go. Many of the world’s most recognised and respected businesses – including 43 FTSE100 clients in the last two years INVESTMENT 10 – come to Addleshaw Goddard to deliver just that kind of simple answer. They rely on our lawyers around the world to find imaginative solutions to their pivotal business problems, and to get things done. POLICY FRAMEWORK 12 SOCIAL CHANGE 14 CONCLUSION 16 CURRENT EMISSIONS 18 WORKING ACROSS THE THE AMBITION 19 EMMISIONS GRAPHS 20 TRANSPORT SECTOR The Addleshaw Goddard Transport practice is widely Our clients include many of the primary industry regarded as among the leading practices in the UK stakeholders, across both the public and private and we are proud of the breadth of expertise. sector, and our work covers major projects across the transport sector. We have a large, expanding team of sector specialist lawyers working regularly on a wide range of matters, and have indepth and current knowledge of the regulatory, contractual, operational and commercial aspects of the industry. AREAS OF EXPERTISE Rail Shipping Light rail Transport Logistics THANK YOU TO OUR CONTRIBUTORS: AGS Airports Glasgow Chamber of Commerce Scottish Enterprise Airports Bus CMAL Glasgow City Council South East of Scotland Transport Partnership Committee for Climate Change Hitachi Rail Stagecoach Edinburgh Airport HIAL Aviation Tram Strathclyde Partnership for Edinburgh City Council Loganair Transport Eversholt Rail Midlothian Council Transport Scotland Forth Ports Network Rail Ports Electric Vehicles Fraser of Allander Professor David Begg 1 FOREWORD The Committee on Climate Change progress report to the On the flipside, there is also huge Scottish Government, published in December 2019, called optimism among those in senior setting a net zero greenhouse gas emissions target for 2045 positions in Scotland’s transport industry and a will to recognise the ‘a step change in ambition for Scotland’. It also noted the enormous economic opportunity need for ‘urgent action’ if the country is to meet this target, that net zero offers. Several people and ahead of it, the ‘extremely challenging’ 75 per cent interviewed raised opportunities reduction target by 2030, a deadline that is now under 10 to reskill existing workforces, years away. to promote international investment into carbon reduction The scale of the challenge is With the Scottish Government technology and infrastructure in underlined by the fact that surface calling climate change a ‘national Scotland, to redeploy Scotland’s transport emissions have risen for emergency’ there seems to have already significant experience in the fourth consecutive year and been a very tangible shift in engineering, onshore and offshore PAUL HIRST have increased by 9 per cent since both corporate and public sector fuel extraction and renewables into 2012. When including aviation and mindsets recently when it comes to the development of new clean fuels, Head of Transport shipping, transport is the highest setting all strategy for the future. mass hydrogen production and the [email protected] emitting sector in Scotland, at 37 During the evidence gathering development of battery storage per cent of total carbon emissions. for this report, one person went technology. so far as to say: ‘Since the climate Across the rail, road, shipping and In this report, we considered just emergency was declared, all policy aviation sectors, all contributors to four of the many facets of change is seen through the prism of how this report agreed there is an urgent and focus that will be needed if we reduce carbon emissions. That is need for a co-ordinated policy we are to meet Scotland’s net zero very new.’ framework that considers not only targets: technology, investment, the decarbonisation of each sector Whilst the political and social will public policy and social change. We individually, but also reviews how is now largely there to drive the spoke to a wide range of experts transport provision interacts today change needed to hit net zero with various perspectives on the and how these interrelationships targets, it was noted by several transport sector and public sector should be improved to provide a contributors to this report, that supporting the road to net zero. We more efficient integrated transport the Scottish elections are set for are thankful for their considered system. 2021 and another referendum on and insightful input. independence remains firmly in Much of the challenge must be COP26, the United Nations climate the SNP’s plans. The will to make about agreeing what modal shifts change negotiation conference, socially unpopular legislative are desirable as well as what is being held in Glasgow on the changes may therefore be blend of technology and access to River Clyde in November this year. dampened in the immediate future transport is suited to local social This is a very real and imminent at the very point at which tough and economic needs. opportunity to showcase what choices need to be made to deliver Scottish policy makers have done, the radical changes required to and are committed to doing, to deliver the net zero promises. support real action to decarbonise the transport sector. 2 3 EXECUTIVE SUMMARY Set out below is a summary of the key insights and proposals arising from our discussions with a panel of industry experts. z Interconnectivity between different modes of z Net zero offers a huge economic development transport is critical opportunity z A politically independent and international z Scotland should develop a skills centre to body is needed with sufficient powers to push upskill its existing workforce to deliver the through radical change – akin to the World change needed Bank z Environmental visas akin to Tier One Investor z There is still some hesitation among private visas could be introduced to encourage companies to commit sufficient investment international investment into businesses and into the development of new technologies, technology that helps to deliver net zero fuel sources etc at the scale required and fast z Much more data is needed to support business enough cases to invest: Government must work with z Hindering this investment is a lack of clarity academia and business to model forward how on specific infrastructure plans including different strategic approaches and technology questions such as the extent to which the will impact society, the economy and the railways can be electrified, the extent to which environment electric vehicle charging points will be installed z Britain’s flight paths are outdated and unfit for and how the grid is to be upgraded sufficiently delivering more carbon efficient travel. This to support the transition of air, shipping, must be reviewed and flight paths changed rail and road vehicles to battery power for urgently using bold legislation to overcome example local objections z There has to be a balance of incentives to z Councils and regional partnerships will need change behaviour and penalties for failing to work together much more closely than to comply: these include the introduction has previously been the case to co-ordinate of low emissions zones, workplace parking connections across the country charges, potentially banning private car use from congested areas, taxing road use z All sectors would welcome better cross-sector more aggressively and introducing better communication and data sharing interconnectivity of ticketing for all forms of public transport to make journeys easier and potentially cheaper z A review is needed of the taxation regimes across all modes of transport; currently and historically tax has encouraged certain modes – principally private car use. This must change to create a bias towards public transport and active modes of transport including walking and cycling 4 5 TECHNOLOGY Electric vehicles, hydrogen trains and buses, battery-powered Two projects are currently running The challenge of infrastructure planes and ferries are all technologies that exist today. Nearly looking at the feasibility of using charging was a point raised There is a real need everyone interviewed was optimistic about the rollout of hydrogen-powered vessels in the across sectors. Ferry operators Orkney Isles and Western Isles. in the Highlands and Islands were to promote and clean transport across Scotland and the UK, with various “ particularly interested in how possibly mandate Ports reported a good level of pilot projects already underway to build test cases. the grid could be extended to data sharing decarbonising technology has support more remote ports and across all logistics already been deployed with Edinburgh and Glasgow airports Last year saw British Airways and harbours to allow for recharging. platforms. battery-powered and hybrid have made leaps forward to reduce Shell plan Europe’s first commercial The rail sector also raised concerns technology used to power ship to surface emissions by replacing waste to jet fuel plant, a further step about the continuity of supply shore gantry cranes and straddle combustion engine vehicles towards transitioning to cleaner generated from renewable sources carriers as well as surface vehicles with EVs on site. Surface access fuel, yet contributors highlighted if electrification of the railways being switched to electric. connections remain an issue for concern that without significant nationwide is desired, referencing Port operators also indicated aviation – how people travel to public funding and incentives, the the outages experienced in 2019 that pressure is being put on and from the airport. In Edinburgh cost of this fuel is prohibitively and consequent disruption to plant equipment providers to there is the tram link; in Glasgow high and production scale too low. services as a major economic and decarbonise as well.
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