- The UK government has announced a number of changes to the zero-emission vehicle (ZEV) mandate, whilst also delivering on its promise to bring forward a ban on new pure petrol and pure diesel passenger cars from 2035 to 2030.
- Some flexibilities have also been introduced in what the government says will ‘protect British manufacturers ‘ – but some in the EV industry are seeing these changes as a ‘weakening’ of the original rules.
- The news marks the results of a consultation that ended in February to introduce ‘flexibilities’ into the ZEV mandate, which had been called on from several key players in the automotive industry.
Flexibilities to be introduced to ZEV mandate – but 2030 ban on new petrol and diesel cars confirmed
The government’s statement has clarified what new vehicles can now be sold come 2030. While the sale of pure petrol and pure diesel cars will be outlawed, hybrids – both traditional hybrid and plug-in hybrid – will be allowed to be sold until 2035. In 2035, all new vans sold will also need to be of the zero-emission variety. Manufacturers will still need to meet the requirement for an increasing proportion of EVs sold each year, in the run up to 2030 and 2035.
Alongside the further confirmation of these dates, a number of ‘flexibilities’ have also been introduced into the ZEV mandate, which the government says will help support several key OEMs in particular – including ones with UK production bases.
This includes a flexibility to allow manufacturers who have overachieved targets against either cars or vans to transfer these excess credits to the other, allowing them to achieve compliance across their portfolio. Manufacturers will now also be given until 2029 to ‘borrow’ future credits on non-compliant vehicles, allowing them to stay compliant so long as they pay these credits back by 2029. A 2029 deadline has also been given for manufacturers to generate ZEV credits by reducing the emissions of non-ZEV vehicles, such as hybrids. Fines for non-compliant vehicles have also been dropped from £15,000 per vehicle, to £12,000 per vehicle.
Unlike the European Union, which is switching to a new CO2 scoring system for plug-in hybrids (which is likely to see the CO2 per km measurement of some PHEVs rise fourfold), the UK also confirmed it would stick to the current scoring system. While this will be welcome news to manufacturers who sell a high proportion of PHEVs, those campaigning for stronger decarbonisation will be disappointed in this failure to follow the EU.
Another important change is a complete exemption from the ZEV mandate for micro-volume (<1,000 yearly registrations) and small-volume (1,000-2,499 yearly registrations) manufacturers. This will cover British manufacturers such as Aston Martin and Bentley.
How has the industry reacted to the changes?
Ian Plummer, Commercial Director of Auto Trader, commented:
“The government have gone some way to supporting the industry with the ambitious ZEV mandate targets by relaxing flexibilities and allowing hybrid sales to contribute to targets. However, the measures are still not enough. There are more new and used EVs than ever on sale now increasing the choice and affordability of the cars, but at this critical moment for the global economy ministers should underpin consumer demand with tax breaks, such as cutting VAT on public charging.”
CEO of ChargeUK, Vicky Read, commented:
“After months of uncertainty, we strongly welcome the Government confirming the 2030 phase out date and the headline trajectories for EV sales. There is no doubt that the UK’s future is electric.
However, by introducing back door amendments the ZEV Mandate has been weakened, creating uncertainty for investment in EV charging infrastructure. It is now vital that today’s announcement is swiftly accompanied by the comprehensive package of measures to help drivers to switch that the government has promised and which will smooth the path for charging investment.
Without these measures we will confine the UK to the slow lane on the transition to electric vehicles instead of going further and faster as ministers have repeatedly promised. The Prime Minister is right that the transition to electric vehicles is a great opportunity for Britain. And he is right to highlight the commitment by ChargeUK members to invest £6bn in charging infrastructure through to 2030.
But it’s an opportunity that cannot be seized if the charging sector cannot invest with confidence. We look to the Government to take the steps needed to allow us to do this.”
Eurig Druce, UK Group Managing Director, Stellantis UK, added:
“We welcome quick and decisive action from the government with the policy adjustments to the ZEV Mandate providing clarity and more certainty on the path to 2030 and beyond to 2035, and await full details. With the challenging geopolitical operating environment and increased intense pressure on automotive industry, extending the current flexibilities, and the introduction of new ones helps Stellantis in continuing to be compliant. We are playing our part in the transition, launching desirable EVs at competitive prices. We have 32 on sale today and eight more to launch this year. Whilst more people are moving to electric, it’s not yet at the pace of the ZEV Mandate. We welcome the flexibilities to allow our customers more freedom of choice. However, there is still a need to address market demand and introduce measures to stimulate it. We will continue to work closely with Government on this.”
