All-Electric Revolution: Government Enforces Zero Emission Vehicle Requirement

author: FutureCar Staff    

The government has released the details of its Zero Emission Vehicle (ZEV) mandate, which states that by 2030, 80% of new cars sold in the UK by carmakers must be zero emission, increasing to 100% by 2035. The published documents are mostly unchanged from the proposals set out in a consultation document in March. This comes after the government's decision to delay the phase-out date for internal combustion engine cars and vans from 2030 to 2035.

The plans require manufacturers to ensure that 22% of the cars they sell in the UK next year are zero emission, with the percentage rising to 33% in 2026 and 52% in 2028. The auto industry has expressed concerns about meeting these targets and has called for additional policy support from the government. However, advocates for electric vehicles (EVs) believe that the 22% goal should be achievable, as zero emission vehicles currently account for around 18% of car sales.

The targets for zero emission vans are less strict, with a 10% market share target in 2024, rising to 34% in 2027 and 70% in 2030. Transport Secretary Mark Harper stated that the mandate provides certainty for manufacturers, benefits drivers by offering more options, and helps grow the economy by creating skilled jobs. The government has also made efforts to make owning an electric vehicle easier, such as increasing the number of chargepoints and providing tax relief for EV owners.

Manufacturers will face fines if they fall short of their ZEV targets, with penalties of £15,000 per car and £18,000 per van, after accounting for exemptions. However, companies will have the option to "borrow" a limited number of ZEV allowances from expected future manufacturing plans through a system of "over-performance credits". These credits will last for three years, allowing carmakers to borrow against manufacturing plans until 2027. In the first year, car manufacturers can borrow up to 75% of their annual target, which will decrease to 25% in 2026. Carmakers that exceed their targets can trade their allowances with manufacturers that have fallen short.

The publication of the ZEV Mandate is a relief for major carmakers, as delays in finalizing the rules were complicating business planning and undermining industry confidence in the transition away from fossil fuel vehicles. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, welcomed the clarity provided by the mandate and recognized it as the "single most important measure to deliver net zero". Clean transport groups also welcomed the fact that the mandate remained largely unchanged from the original proposals set out in March.

The ZEV mandate has set sales targets for zero emission cars between 2030 and 2035, with figures rising from 84% in 2031 to 92% in 2033 and 100% in 2035. However, the UK's new phase out date of 2035 allows automakers to continue selling internal combustion engine petrol and diesel cars as part of their remaining non-zero emission vehicle budget, instead of relying solely on plug-in hybrids. This change is estimated to result in approximately 980,000 more internal combustion engine vehicles on the roads, producing 10 million tonnes of additional carbon emissions over their lifetimes.

The final version of the ZEV mandate has relaxed the targets for van makers in 2025 and 2026, which has disappointed campaigners who believed that the previous goals were already insufficiently ambitious. The fines for van makers that fail to comply with the regulations have also been reduced to £9,000 per van in the first year. However, the rules are yet to be fully finalized, and the sales targets for the 2030 to 2035 period remain "indicative" and have not been written into legislation.

The government has faced criticism for watering down key climate policies, and MPs on the Energy Security and Net Zero community have joined in the criticism, warning that the government's actions are undermining the UK's climate leadership. They have expressed concerns about the lack of engagement with other party political leaders or elected representatives of the devolved assemblies, and the potential for climate issues to become a party political football.

FutureCar Staff