Introduction to Mobility Credits

Background

Despite the national resurgence of debates around climate change and air quality, it remains the case
that many consumers in the UK consider this to be an academic debate that is separate to their
transport decisions. Many are currently unwilling or unable to give up their primary form of transport;
a private car. This is despite the fact that privately owned vehicles in our cities are parked 97% of the
time. It is also important to recognise that many of those with the highest polluting vehicles,
particularly old diesel cars, have the least amount of disposable income, and the lowest financial ability
to elect to swap those vehicles for newer, more environmentally friendly alternatives.

However, the contribution of diesel vehicles to NOx emissions in urban areas has come under scrutiny
by policy makers and local authorities have been set mandated targets to tackle roadside NOx
concentrations. It is essential that national and local government ensure that consumers, and
particularly those from lower socio-economic groups, have an option that is viable and supports them
as they transition away from high polluting diesel vehicles.

Basic scrappage schemes have been suggested as a way to combat this issue in the past; but whilst
these proposals promoted a switch to less polluting cars, they also promoted private car ownership
and did not ease congestion in our cities.

What are Mobility Credits?

The proposed Mobility Credits Scheme would ask participants to scrap their older diesel cars (Euro 1
to 5) to access ‘credits’ over a set period to spend on appropriate shared transportation options. As
an incentive to consumers, the credits offered would exceed the market value of the car and could be
used on a range of sustainable and efficient modes of transport to suit their lives. Depending on the
local area, the credits would include bus, active travel initiatives such as bike share or hire, car club
and daily rental, rail and tram. The scheme could be delivered by means of a pre-paid card system, or
alongside digital MaaS applications, with additional rules introduced concerning length of vehicle
ownership and vehicle type.