The Sustainable Distribution Fund
Introduction
In recent years the Government has funded programmes whose objective is to minimise the impact of freight on the environment, safety and other transport users. To achieve this programmes have been supported which either reduce the quantity of lorries used on the roads, or reduce the environmental impact of the remaining lorries that are used. The specific objectives include minimising congestion, making better use of transport infrastructure, minimising pollution, reducing greenhouse gas emissions, and reducing noise and disturbance from freight movements.
In February 2005 the Department for Transport announced the establishment of the Sustainable Distribution Fund (SDF) whereby the different programmes with their budgets are brought together into a single pot and prioritisation of expenditure made on a value for money basis.
In broad terms the two main elements of the Sustainable Distribution Fund (SDF) are the mode shift programme (where we encourage the use of rail and water to transport goods) and the efficiency programme (where we encourage the more efficient use of all transport modes).
Mode shift programmes
Three schemes operate within the mode shift programme; Freight Facilities Grant (FFG), Rail Environmental Benefit Procurement Scheme (REPS), and Waterborne Freight Grant (WFG). These schemes are designed to facilitate the purchase of the environmental and social benefits that result from using rail or water transport instead of road.
The Rail Environmental benefit Procurement Scheme and Waterborne Freight Grant assist companies with the operating costs associated with running rail or water freight transport instead of road where rail or water is more expensive than road. Freight Facilities Grant helps offset the capital cost of providing rail and water freight handling facilities, again where the cost of these facilities makes rail or water more expensive to use than the road alternative.
Applicants can seek REPS and/or WFG as well as FFG. However, the Department can only "purchase" any particular benefit once so in considering the value of such applications, the total grant requirement, and total environmental benefit (i.e. cumulative costs and benefits of all grant awards) will be taken into account.
The SDF mode shift programme is run through a system of bid rounds. Full details of these bid rounds and further scheme specific guidance are available from the contacts below.
Efficiency programmes
The SDF also funds schemes to improve the efficiency of freight transport modes. Due to the nature and size of freight businesses, it can often be the case that environmental and social benefits can be missed by commercial enterprises even though the actions required may also reduce the business' costs. This is caused, for example, by companies being too small to undertake detailed evaluations of working practices or consideration of new technologies. SDF funding for efficiency is designed to support: best practice analyses and advice; and practical schemes to improve efficiency leading to reductions in environmental impact and/or improvements in safety. Examples of these schemes can be found at www.freightbestpractice.org.uk/ .
The Department does not invite specific external proposals for efficiency funding. The potential for efficiency schemes to deliver benefits will normally be appraised as part of the Department's research programme before proposals become eligible for funding from the SDF. Candidates for such appraisal will be identified in discussion with key stakeholders (including industry representatives, trade associations and academics in the logistics fields).
Further information
Further information on the SDF can be found in the "Freight Logistics" section of the DfT website www.dft.gov.uk
If you want to know more, or to discuss the potential eligibility of any particular proposal, please contact the relevant team listed below:
| Information on and how to apply for mode shift programmes: | Information on efficiency spending: |
|---|---|
|
Freight Grants Team |
Best Practice Team |
