ZEV mandate consultation begins with focus on hybrids and vans

The government has launched its consultation into the ZEV mandate, asking for industry input into the delivery of its zero-emissions targets.

Transport Secretary Heidi Alexander announced the opening of the consultation, saying it would help ‘restore clarity’ around the UK’s shift to zero emission vehicles and the phasing out of petrol and diesel cars.

The consultation confirms that there will be no change to the new car sales targets of the ZEV mandate. As before, 80% of a manufacturer’s new car sales will have to be fully zero-emission by 2030, rising to 100% by 2035.

It also confirms that sales of purely petrol or diesel cars and mild hybrids will be banned in 2030. However, it seeks to define exactly what hybrids will be allowed to remain on sale between 2030 and 2035. This includes whether only plug-in hybrids should be allowed, whether full hybrids should count or whether their eligibility should be based on CO2 emissions rather than technology.

Alexander said the previous government had done ‘great harm’ and caused doubt and confusion when it moved the ICE phase-out from 2030 to 2035. She said the ‘largely technical’ consultation aimed to address that and get further industry input on its implementation.

Alongside discussions around vehicle sales targets, the DfT said the consultation would examine flexibilities around the annual targets, which currently include carbon trading and ‘borrowing’ credits from future years. It said it would consider whether existing flexibilities could be extended until 2026 and whether new emissions trading between car and van fleets should be considered.

The survey also appears to leave space for non-electric vans to remain on sale beyond 2030. Sales of electric vans have lagged behind targets as businesses continue to worry about their suitability for fleet use. The consultation suggests a fleet CO2 reduction target could be put in place instead of flat ZEV sales targets beyond 2030.

The Society of Motor Manufacturers and Traders (SMMT) has repeatedly warned that the ZEV mandate could cause huge damage to the UK car industry in its current form and called for it to be reassessed, and for government help to deliver it.

SMMT chief executive Mike Hawes said: The automotive industry welcomes government’s review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the zero emission vehicle mandate.

“These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand. Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of £4 billion in discounting in the UK this year alone. This is unsustainable and, with the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand. Such action will support not only the industry, but also deliver for the economy, consumer, government and the environment.

Vicky Read, CEO of charging industry body ChargeUK welcomed the publication of the ZEV mandate consultation. She said: “We hope [this] will bring certainty to the EV and charging sectors after a destabilising few months, during which the foundations of the UK’s EV policy have been called into question.

“ChargeUK has been vocal in its assertion that billions of investment, as well as the significant progress made in the charging rollout, will be put at risk should the ZEV mandate be weakened.

“As the consultation finally gets underway, we call on the government to hold its nerve and commit to a policy approach that combines ambitious EV sales targets with bold measures to help drivers make the switch.”