Green Transport update

In the March 2021 budget the UK Government reiterated its commitment to reach net-zero greenhouse gas emissions by 2050. A key part of reducing emissions is the transport industry. The intended ban on the sale of new cars and vans powered by petrol and diesel from 2030 has placed a spot light on the green alternative methods of transport, with a focus on electric cars and hybrid cars which in turn requires a focus on green infrastructure in the form of electric vehicle (‘EV’) charging points.

Installation of EV charging points in commercial areas such as a car park or taxi rank can be achieved using a lease of the area housing the charging equipment, and can include the relevant parking areas, but this is not always required.

Consideration in any lease must be given to the risk apportionment of the payment structure, if it’s a turnover rent will there be a base rent? Who pays for the installation costs? What termination provisions will be required and will any break be linked to turnover level? In a fast paced and growing market with rapidly evolving technology, and particularly with reference to a more long-term lease, would it be prudent to include requirements for upgrading the charging points in line with the market trends? There is a lot to think about, but one thing is certain: The need for Green infrastructure is only going to increase as we get closer to 2030.

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