London, UK – Flexible Power Systems (FPS) and PA Consulting, the company that’s bringing ingenuity to life, have jointly authored a white paper to examine the critical factors in determining fleet decarbonisation pathways in the approach to the European Zero Emission Vehicles (ZEV) mandate.
With the clock to 2030 ticking down quickly, more than 700,000 Internal Combustion Engine (ICE) vehicles will have to be displaced every year to meet European sales targets. With electric vehicle (EV) van sales only 6.5% of total van sales in Europe in 2024, drastic action is needed to achieve the aim of a carbon free future.
According to the European Automobile Manufacturers’ Association (ACEA), more than €16 billion in fines could be issued this year to carmakers who do not meet emissions targets.
The co-authored white paper entitled Mitigating Risk, Maximising Value: A Strategic Approach to Fleet Decarbonisation, addresses the pressing need for commercial fleet decarbonisation. The paper provides a framework for approaching both the operational and organisational aspects of the transition to Zero Emission Vehicles (ZEVs).
Michael Ayres, Managing Director at Flexible Power Systems says: “The clock is ticking to make a meaningful transition to an EV fleet future. Early action will not only mitigate risk from tightening regulations, but also unlock significant operational, financial and regulatory benefits. The key is to start planning early to ensure commercial fleets are ready for when regulations start making a significant impact on investment decisions. The time for action is now.”
Key Findings:
- Market Observations: The white paper highlights the increasing urgency for organisations to transition to ZEVs to meet corporate and national climate targets. Acceleration is expected both to meet the 2030 and 2035 targets and because of improvements in technology and economics.
- Recommendations: Early action is crucial to mitigate risks from tightening regulations and unlock operational, financial, and reputational benefits. The white paper outlines three key operational pillars for successful fleet decarbonisation:
- Infrastructure, Data, and IT System Integration: Ensuring comprehensive flows of high-quality data to inform fleet decision-making in real-time.
- Cross-Functional Stakeholder Coordination: Generating cross-functional sponsorship and incentivising productive collaboration.
- Fleet/Business-Wide Approach to Asset Optimisation: Ensuring infrastructure and fleet optimisation is informed by broader organisational dependencies and new capabilities.
- Organisational and Business Requirements: The white paper emphasises that successful fleet decarbonisation goes beyond technical requirements. It is essential to capture organisational and business requirements to ensure a holistic approach. This includes aligning fleet decarbonisation with broader business strategies, stakeholder coordination, and integrating new capabilities into existing operations.
- Challenges and Opportunities: The white paper also delves into common challenges such as affordability, technical barriers, and operational hurdles, while highlighting the significant benefits of early investment in a well-planned decarbonisation strategy. It emphasises the transformative potential of deploying the right operational configuration.
David Sanders, energy transition expert at PA Consulting, says: “In PA’s experience, deploying the right operational configuration when planning and executing a fleet decarbonisation programme can be transformative.”
