UK Government Confirms Zero-Emission Vehicle Mandate

The UK government has finally provided details of the long-awaited zero-emission vehicle (ZEV) mandate, which will come into effect on January 1, 2024. Under the new mandate, 22% of all new car sales in the UK must be ZEVs. This figure will increase to 28% in 2025, 33% in 2026, and so on, until reaching 100% in 2035. Manufacturers who fail to meet the target will face fines, although the specific details of these fines have yet to be outlined.

The announcement of the ZEV mandate comes just a week after the government delayed the ban on internal combustion engine (ICE) vehicles from 2030 to 2035. The government aims to provide certainty for manufacturers, offer more options for drivers, and create skilled jobs to grow the economy.

To support car makers in meeting the ZEV targets, the government has introduced flexibility measures. Manufacturers can bank compliance in years when they exceed annual targets for use in future years or trade them with other manufacturers that have fallen short. In the first year, car manufacturers can borrow up to 75% of their annual target, gradually decreasing to 25% by 2026.

In addition to the ZEV mandate, grants have been reintroduced for plug-in vans. Small vans can receive up to £2500, while large vans can receive up to £5000. The government has also addressed concerns about charging infrastructure for flat-dwellers by offering a £350 discount on home charge points for those living in apartments.

Transport Secretary Mark Harper stated that the mandate provides certainty for manufacturers, benefits drivers by providing more options, and helps grow the economy by creating skilled jobs. He emphasized that the government wants to support motorists in traveling how they want while being consistent with environmental goals.

The Society of Motor Manufacturers and Traders (SMMT) chief Mike Hawes welcomed the clarity provided by the mandate, stating that it is the most important measure to deliver net zero. However, he also highlighted the need for a post-2030 regulatory framework and consumer incentives to ensure a buoyant market and encourage drivers to switch to electric vehicles (EVs).

Ford UK boss Lisa Brankin expressed support for the mandate, as it provides an investment signal for infrastructure providers to accelerate the installation of new charge points. However, she also called for more action to make the switch to EVs easier for customers, particularly in light of potential tariffs on European-built electric vehicles from January.

Renault also welcomed the mandate but urged authorities to act swiftly to avoid potential barriers for consumers, such as additional taxes on EU-made electric vehicles being sold in the UK. The company reiterated its commitment to electrification and its goal of reducing emissions while offering a broad range of electric vehicles.

The announcement of the ZEV mandate has brought welcome clarity and support for investment in ZEVs and associated technologies and industries. The AA CEO, Jakob Pfaudler, stated that the AA will work to give confidence to drivers during this transition period.

Overall, the ZEV mandate represents a significant step towards achieving the UK’s environmental goals and promoting the adoption of electric vehicles. With clear targets and flexibility measures in place, manufacturers will be incentivized to produce more ZEVs, while drivers will have more options and support for owning electric vehicles. The mandate also highlights the importance of infrastructure development and consumer incentives to ensure a successful transition to zero-emission transportation.