The cut in duty on ultra low sulphur diesel, relative to standard diesel, will help to establish a wider distribution for the fuel in the UK. The use of low sulphur diesel will in itself cut emissions. However, the exciting prospect for the UK is that it allows fitment of novel particulate trap technology to heavy duty diesel vehicles. Johnson Matthey is a world leader in the development of such technology. The JM device, known as the Continuously Regenerating Trap (CRT), is much like a catalytic convertor and fits in the exhaust of a truck or bus. It removes more than 90% of carbon monoxide, hydrocarbons and particles from heavy duty diesel exhaust and is suitable both for new vehicles and for retrofit to most existing heavy duty vehicles. In addition to removing visible "black smoke" the CRT has been shown to be effective in the removal of ultra fine particles (PM 2.5), which are believed to be particularly dangerous to health. The additional measure of a cut in vehicle excise duty (VED) by up to £500 for lorries producing very low particulate emissions will have a significant impact on the high concentration of airborne particulate in our cities. It will encourage current operators to retrofit particulate traps in the sure knowledge that there will be continuity of supply for ultra low sulphur fuel, whilst ensuring that the investment remains cost effective over the life of the vehicle. Buses and refuse vehicles, as well as lorries represent a substantial market for particulate traps.

Johnson Matthey's CRT technology is already well established, particularly in Sweden and Germany where there are already over 1500 vehicles fitted including refuse freighters, trucks, intercity buses and inner city buses. There have been a number of successful demonstration projects undertaken in the UK.

Commenting on the proposals, David Davies, Chairman and Chief Executive of Johnson Matthey, said:

"This represents a significant step towards improving air quality in our towns and cities and in reducing health effects such as asthma which recent evidence has linked to particulate emissions.

As the number one supplier of autocatalysts to the car industry worldwide, Johnson Matthey is delighted that the package of measures announced by the Chancellor will enable us to make a further major contribution to air quality through the introduction of the CRT.