The DfT’s Alternative Fuels Infrastructure Grant Programme (AFIGP) is a grant intervention programme aimed at overcoming one of the market failures inhibiting the acceleration of the deployment of low carbon vehicles needed to meet national road transport decarbonisation targets and local air quality targets. The market failure is concerned with the interdependence of the availability of fuelling infrastructure and of alternatively-fuelled vehicles. Private investment in fuelling infrastructure is inhibited by the absence of a critical mass of vehicles in use, whereas the investment in vehicle availability is inhibited by the absence of an appropriate fuelling network. Thus the AFIGP wasintroduced by the DfT in 2005 as part of a suite of national policy interventions dealing in parallel with technology, fleet deployment, consumer awareness and infrastructure development.
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