HAE highlights hirers’ green role
9 April 2024
The HAE has highlighted the positive role hirers can play in promoting the wider adoption of environmentally friendly equipment in the association’s response to the government’s call for evidence relating to the decarbonisation of non-road mobile machinery (NRMM). It also suggests measures that would accelerate and widen its adoption.
As mentioned earlier on the blog, the government asked for comments by 26 March on its discussion document relating to the issue, to help frame its strategy to achieve Net Zero by 2050.
In its submission, HAE states that the hire industry is a vital enabler of much economic activity ranging from homebuilding to infrastructure. It estimates that approximately 75% of equipment used in UK construction activity is hired and that the sector has a value of around £8 billion, employing more than 35,000 people.
HAE points points out that greener options for equipment, plant and tools tend to be more expensive and this affects customer willingness to hire that option over a cheaper alternative. This would lengthen the time for a hire company buying an asset to achieve a return on the investment.
“This demand affects the willingness of manufacturers to supply equipment knowing that the hire utilisation rates are lower,” says the association. “The additional purchase cost is also a barrier, as are power demands in hire depots or on-site for overnight recharging. Retrospective upgrades to power supplies are costly and not always possible.”
Given this likely timescale, HAE suggests that removing less efficient assets more quickly and encouraging their replacement with greener alternatives would be greatly enhanced by a national scrappage scheme or similar.
The association points out that it has been participating in the Treasury/HMRC-led Leasing Working Group which is exploring an extension to the full expensing (FE) allowance for capital purchases. The current exclusion of assets purchased for leasing, or hire, needs to be updated, it says, adding that this would incentivise the purchase of low-carbon assets.
HAE also argues for a joined-up, national approach to regulations making the use of greener equipment compulsory. “National businesses face challenges in making sure they are aware of and comply with variable measures adopted by local government. This can be at the Mayoral Combined Authority or Unitary Authority level. Whether clean air zones, bans of certain types of vehicles, loading controls – all will impact at an operational level.”
HAE adds that differing requirements could make it more difficult to supply compliant equipment to meet demand, impacting on the delivery of new homes, infrastructure renewal and maintenance work.
The government has said it intends to set out its response to the call for evidence as part of the planned NRMM Decarbonisation Strategy in due course, and the results will be awaited with interest.
Photo: Gino Crescoli/Pixabay
