Fleets introduce carbon dioxide emissions caps
September 15, 2009
A Fleet News environment survey has revealed that 60% of fleets have introduced carbon dioxide (CO2) emissions caps, with 65% of these opting for the 160g/km Capital Allowance threshold. Above this limit, just 10% of the depreciation cost of the car can be written down against tax.
The second most popular limit is 120g/km, chosen by 10% of these fleets. However, none have selected the 110g/km cap, even though they would then be able to write down 100% of the first-year depreciation cost against tax. Some of the fleets have opted for a tiered capping policy and several have a policy of reducing the cap levels each year by a certain percentage.
These findings are backed up by data from the Society of Motor Manufacturers and Traders which shows that average CO2 emissions from all new company cars is down from almost 165g/km last year to 158.4g/km this year.
Government taxation and customer demands are encouraging fleets to go green. Senior directors often set an example, as evidenced by directors in one-third of fleets replacing their cars by a vehicle with lower emissions, as opposed to only 16% choosing to do so last year.
Facilities managers can help by presenting a business case that shows how much it is costing the company and also the director personally to run a high polluting car and then demonstrating that many executive cars fall below the 160g/km benchmark.
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