Climate Contract Playbook Edition 3
216
[Sava’s clause] NEW
The Origin Story
Child’s name
Sava’s clause
Full name
Sustainable Connectivity in Rail Franchise Agreements
Practice Area / Sector
Public Procurement, Commercial
Obligations on train operating companies (TOCs) to provide ancillary transport do not normally require the use of low emission vehicles or sustainable alternatives. This is at odds with Net Zero strategies.
Issue
Create requirements within existing franchise agreements for TOCs to use a certain percentage of low emissions vehicles, defined by reference to standardised language.
Solution
Incentivise TOCs to think of long-term solutions, beyond their own franchise, by recognising and crediting investment towards low emission road transport or more sustainable working practices (including the possibility of demand driven services, ride- sharing solutions or micro-transit).
In 2018, HM Government published its Road to Zero strategy which sets how it will support the transition to zero emission road transport. This strategy is heavily dependent on the replacement of fossil-fuel vehicles by low and zero emission electric vehicles (EVs) with the HM Government now planning to end the sale of fossil-fuel vehicles by 2035. Use of EVs, ride-sharing and micro transit is essential if we are to stem reliance on fossil fuels before 2035. The Government can impact the procurement of sustainable transport services in a number of ways, including through the system of rail franchising. Obligations on train operating companies (TOCs) to provide ancillary transport (e.g. connecting rail services to local areas, other transport hubs, or road replacement services) are significant and long term (e.g. 10 years) investments in transport services, yet: • if there are any requirements relating to the type of transport/vehicles provided, the clauses will not provide for low emission vehicles or do not clearly define what constitutes a ‘low emission vehicle’;
Context
• no standard terminology is used to describe different types of vehicle or where a vehicle is on the ‘low emission vehicles’ scale is; and
• there are no benchmarking provisions or requirements ensuring that ancillary transport services are sustainable.
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