Decarbonisation – bite-sized insights from the CEA Manifesto

With the General Election now scheduled for 4 July, it is paramount that the CEA continues to be the voice of the industry to the UK Government.

The CEA Policy Group, established in Spring 2024, prepared this Manifesto to outline our clear and transparent approach to tackling the challenges facing the construction equipment sector and the wider construction, engineering, manufacturing, and education sectors.

The UK construction equipment sector is working hard to achieve decarbonisation targets. Leading manufacturers are developing various innovative solutions to support their customers’ climate-related objectives, increase operational efficiency, and reduce emissions. We maintain a technology-neutral position and believes legislation should do the same.

Technology-neutral standards, regulations, and/or incentives will help reduce barriers and improve the adoption of new, lower-carbon-intensity technologies. With a significant portion of commercial R&D stimulus spending directed towards decarbonisation efforts, OEMs have actively explored zero-emission technologies. These include full electric machines powered by both batteries and tethered systems and the utilisation of hydrogen fuel cells and hydrogen combustion engines. Fuel is one of the key cost considerations for the sector, and exploration of alternative technologies is key to achieving our goals.

The clean, low-emissions diesel-powered internal combustion engine (ICE) is here for the long term on construction sites. A modern diesel engine produces around 98% less NOx and 95% less particulates than its predecessor. Our CESAR ECV Scheme allows for instant identification of engine emission levels, highlighting equipment with the cleanest emissions technology. It is, therefore, a key tool in the management of ULEZ fleets. This Scheme can and should be expanded into more geographical territories to allow the Government to meet its targets.

For the UK market to thrive, we must work hard to ensure the synchronisation of decarbonisation policies with those in Europe and globally.

Our asks

• Adopt technology-neutral regulation to encourage investment in lower carbon intensity technologies.
• Adopt regulation that supports technologically feasible and cost-effective outcomes rather than a technology-specific mandate.
• Coherent planning for a national fuel infrastructure.
• Further investment to bolster research and development of a range of alternative fuel technologies.
• Support for companies wishing to invest in low-emission products which often attract a higher capital investment and a different talent acquisition profile than the development of traditional products.
• Joined-up action on regulatory alignment to deliver regulatory stability and provide the sector with sufficient lead time from regulation enactment to implementation. For example, a statutory instrument has been drafted by the Department for Transport to allow hydrogen-powered machinery to drive on public highways. This requires submission to committee stage to re-align UK legislation with that which has been amended by our European neighbours.
• The development of hydrogen combustion engines aligns with the UK’s Net Zero ambitions and presents a significant opportunity for the country. However, UK legislation needs to be aligned to that in the EU which considers a hydrogen-fuelled internal combustion engine as a zero-emission technology. Last year, the 18 OEMs in the UK produced 2.5 million engines, supporting over 67,500 jobs.