The UK’s ZEV mandate consultation begins: Reactions and topics

On the 24th of December, the UK government announced that there would be an official consultation regarding the Zero Emission Vehicle (ZEV) mandate. 

This six-week consultation aims to gather insights from stakeholders across the industry and beyond, addressing how the nation will meet its ambitious zero-emission goals.

"This consultation is focused on how, not if, we reach the 2030 target."

The ZEV mandate is a cornerstone of the UK’s sustainability strategy. The mandate states that by 2035, all new cars and vans sold in the UK must be fully zero-emission. An interim target for 2030 requires 80% of new vehicles to meet zero-emission standards.

This policy is vital for driving decarbonisation in the transportation sector and achieving net-zero emissions.

The consultation's objectives 

The government aims to foster collaboration between industry, policymakers, and other key players. The consultation will focus on defining the pathway to achieving the ZEV targets while addressing technical and practical challenges.

In the government’s 49-page report on the subject, they say:

"This consultation is largely technical in nature. It concerns what sort of vehicles should be allowed for sale in the 2030-2035 period and seeks views on potential adjustments to the UK's largest carbon-saving measure".

How will the consultation be conducted? 

The consultation will include workshops, roundtables, and other formats to encourage dialogue between stakeholders. It is split into two key areas:

What's included in Part 1?

(1.1) Views on what types of cars should be sold from 2030 onwards (for example, the use of hybrids)?

Aim: To ensure clarification around definitions. Technical definitions of how a vehicle is powered (also known as the drivetrain) need to be clarified to ensure manufacturers know exactly what vehicle types will be allowed. 

Considerations: 

• What’s the most effective way to determine ‘acceptable’ vehicles? By:
  • Deciding on a CO₂ emissions cap for individual vehicles
  • Deciding on a maximum level of emissions per manufacturer 
• Should low-emission ICE cars still be sold?
• Should there be a non-ZEV fleet average CO₂ emissions cap, where manufacturers would be measured on averages rather than per vehicle? 
• How should these goals differ between cars, HGVs and LGVs?

(1.2) Views on demand measures to support the uptake of ZEV vehicles. 

Aim: A review of current tax incentives, grants, and investments that are currently being supported by the government. 

Considerations: 

• Should manufacturers who are producing a low volume of vehicles be penalised at the same rate as larger manufacturers?
• Should Special Purpose Vehicles (SPVs) be exempt? 

What's included in Part 2?

(2.1) Views on flexibilities in the ZEV Mandate up to 2030 and other technical updates to support the efficient running of the regulation. 

Aim: Ensure that the Vehicle Emissions Trading Schemes Order 2023 (VETS) is still effective and continues to be so in the future. 

Considerations:

• Do vehicle manufacturers have access to the right flexibilities in order to comply with targets?
• Does the VETS need to be amended to account for changes in UNECE and EU-type approval methodology in monitoring compliance against the baseline CO₂ targets?
• The government proposes changes to Regulation (EU) 2019/631, which states how specific emission targets are calculated and applied in regard to the UK market. 

Industry reactions

The consultation has been welcomed by key players across the electric vehicle (EV) and renewable energy sectors.

Jonathan Reynolds, Business and Trade Secretary emphasised the government’s support for the auto industry:

“This Government is backing the auto sector with £2 billion to support domestic manufacturers’ transition to zero-emission vehicles and over £300 million to drive consumer uptake.”

Vicky Read, CEO of ChargeUK, expressed optimism:

“We welcome the publication of the ZEV mandate consultation, which we hope will bring certainty to the EV and charging sectors after a destabilising few months.”

Stuart Tolley, GEO Director UK & IRE at Virta, says: 

“We hope that the ZEV mandate consultation will provide the opportunity to set in place concrete actions to support the sector in the transition to zero-emission vehicles, and to ensure consumer confidence in that shift. It impacts all elements of the e-Mobility supply chain.”

Matt Adams, Head of Transport at the REA (Renewable Energy Association), highlighted the consultation’s significance:

“Decarbonising road transport is crucial to hitting net zero. This consultation will provide investor certainty and allow us to deploy EV charging infrastructure further and faster.”

Next steps

The consultation will remain open until February 18, 2025. Stakeholders are encouraged to submit their views to shape the future of the UK's ZEV strategy.