A report on how the government could support the development of new transport technology has called for greater incentives to encourage drivers to switch to low emission vehicles.

The report, Motoring of the Future, by the Transport Select Committee, praises the government for setting up the Office of Low Emission Vehicles (OLEV) in 2009 but says it still needs to develop a strategy for the future.

It says: “Low carbon vehicles are set to make up an increasing proportion of the vehicle fleet and will form a key part of the UK’s motoring future. Adoption has been slower than projected, but it is now starting to accelerate.

“Different technologies are becoming available, but drivers need more incentives to switch to low emission vehicles, confidence that refuelling infrastructure will be available and certainty in the Government’s long-term policies on investment, subsidy and taxation regimes.

“The creation of OLEV has been a positive step, but implementing its strategy will be challenging. Future fuels can contribute to UK decarbonisation and air quality targets. Government cannot pick a winner, but it can provide certainty for market participants to incentivise investment."

It adds: “The Department for Transport should ensure that OLEV: clarifies long-term policies on investment, subsidy and taxation regimes for ultra low emission vehicles (ULEVs); sets out an action plan for accelerating the uptake of ULEVs, including an assessment of how different incentives could contribute to that objective; and defines a strategy to meet European Commission targets on refuelling infrastructure in UK.”