UK Government urged to make salary sacrifice mandatory to hit ZEV mandate aims

The government should make EV salary sacrifice schemes mandatory for businesses to help slash transport emissions, according to a leading green trade association.

In its response to the ZEV mandate consultation, the Renewable Energy Association (REA) lobbied the UK government to force medium and large businesses to adopt the vehicle leasing schemes. It also called for an increase to road fuel duty; a government-backed loan scheme for consumers to buy an EV, as well as measures to overcome electricity grid connection issues.

The trade body wants the Government to ‘stick to its guns’, and ensure any flexibilities in the Department for Transport’s ZEV mandate are not stretched beyond 2026. The ZEV mandate findings will be published at the end of March this year.

The ZEV mandate requires that carmakers must sell a percentage of ZEVs each year. In 2024, that figure was 22% and is set to increase to 28% in 2025. By 2030, 80% of new cars and 70% of new vans sold in the UK must be zero emission. The threshold will increase to 100% by 2035.

“Reaching net zero will require collaboration on a scale that has never been seen before,” said the REA’s head of transport and innovation, Matthew Adams.

The REA strongly opposes the inclusion of full hybrid vehicles within its response to the DfT’s consultation. It says that HEVs have a significantly higher CO2 emissions range, and ultimately their electric batteries are powered by petrol and diesel.

“Our members represent many of the businesses and organisations who are tasked with trying to reduce emissions,” Adams continued. “By implementing our recommendations and sticking to their guns with the ZEV mandate, the Government can make the UK a leader in zero-emissions transport with the country benefiting from all the health and economic opportunities that will be brought about from this.

“If it doesn’t then all the progress that has been made with the rollout of charging infrastructure and increased sales of EVs will be at risk, creating uncertainty in the market. In our view, the choice is an obvious and stark one.”

The trade association is also opposed to the increasing of flexibilities around the annual targets beyond 2026, which currently include carbon trading and ‘borrowing’ credits from future years.

“If the Government is serious about reaching its zero-emissions targets then it must remain steadfast in its commitments and keep the ZEV mandate as is,” Adams added. “This isn’t the time to bow down to the demands of certain vehicle manufacturers and any ‘zero emission’ ambition must align with the technology that will help us get there. That’s battery electric vehicles and not full hybrid vehicles, which are essentially petrol vehicles in all but name.”

Adams argues that an “impactful” ZEV mandate should always ensure that policy is implemented that maximises carbon emission savings.

“Increasing flexibilities will result in slower uptake of EVs, reducing the immediate impact on air quality we need to save lives today,” he concluded. “By sticking to their guns, the Government will show that they’re serious about their clean transport and energy plans and this will ultimately have a huge, positive impact on air quality leading to a healthier and wealthier nation.”