The Government has pledged to introducing an ‘ambitious’ Zero Emission Vehicle (ZEV) mandate from 2024 with a new consultation, paving the way for all new car and van sales to be zero-emission by 2035 as it also rules out e-fuels inclusion.

The new consultation retains the same trajectory figures for cars – despite fears they’d be watered down – and actually increases them for vans

The consultation – announced as part of new Powering Up Britain plans that also include new charge point funding and commitments on charging standards – seeks views on the final proposed regulatory framework and will help finalise the design of the ZEV mandate and CO2 emissions regulation.

The long-awaited ZEV mandate will require car and vanmakers to have a minimum percentage of their new vehicle sales as zero emission to help drive net zero goals through increased electric vehicle take-up.

It’s seen as a vital means to “put UK manufacturers at the forefront of the electric revolution”, ensuring future EV supply and providing certainty to charge point operators and energy suppliers that will in turn help boost infrastructure. Such mandates have already proved effective in California and other US states and could also help reduce prices of EVs as more come to market.

The ZEV mandate consultation seeks views on areas including the level of ZEV uptake; how allowances and credits could be allocated and used; flexibilities including banking, borrowing and transfers between schemes; derogations and exemptions; how to regulate the non-ZEV portion of the fleet; and how the ZEV mandate and non-ZEV CO2 regulation interact.

Importantly, the consultation retains the same trajectory figures for cars – despite fears they’d be watered down – and actually increases them for vans.

The proposed minimum ZEV target trajectory for new cars sold begins at 22% in 2024, increasing to 80% in 2030, reaching 100% in 2035.

The proposed minimum ZEV target trajectory for new vans sold begins at 10% in 2024 and reaches 70% in 2030 on the way to 100% in 2035.

The legislation will cover the 2024-2030 period; further legislation spanning the years to the 2035 ICE ban will be introduced at a later point, but the Government has said it intends that the legislative minimum trajectories will be at least as ambitious as those set out in current trajectories.

The ZEV mandate was first announced in 2021’s UK Transport Decarbonisation Plan and the Government committed to introducing it from 2024 in the Net Zero Strategy later that year. But while it opened a technical consultation in April 2022, there had been no further updates since, despite hopes for an announcement in the Autumn Statement.

e-fuels not a solution for ‘normal’ cars and vans

The Government has also reaffirmed commitment to cease the sale of new ICE vehicles by 2030 in its Powering Up Britain plans and confirmed that it’s not looking to factor in e-fuels, despite the change of plan seen within the European Union.

Earlier this week, the EU agreed an effective ban on combustion engines from 2035. But, in what’s seen as a win for Germany and its car making industry, the agreement allows cars running exclusively on e-fuels – which are designed to be carbon-neutral – to still be sold.

However, the Department for Transport has ruled out such a move for the UK’s own ICE ban for cars and vans.

A DfT spokesperson said: “E-fuels are not proven technology, have expensive and complex supply chains, and emit much of the same pollutants as petrol and diesel. They might have a role for specialist vehicles, but we are not looking at them as a solution for normal cars and vans.

“We remain committed to helping people switch to electric vehicles, having invested £2bn so far, ending the sale of new petrol and diesel cars by 2030, and for all new cars and vans to be zero emission by 2035.”

MPs on the Transport Committee recently spotlighted the benefits of synthetic fuels and biofuels in a report that says the UK’s EV charging infrastructure is not adequate, and there are insufficient raw materials for EVs.

Industry body Logistics UK had also called for a long-term plan from government for utilising low carbon fuels across transport modes as it warned that battery technology is not widely available in every type of logistics vehicle at present.

Last week saw FleetCheck dismiss the idea that e-fuels could prove a saviour for the car sector but said they might have a limited role to play in fleet applications where electric vehicles might remain impractical for the time being.

ZEV mandate delivers certainty for auto and fleet sectors

News of the ZEV mandate has been universally greeted, albeit with some criticisms.

The Society of Motor Manufacturers and Traders (SMMT) welcomed the long-awaited consultation on a “watershed regulation” for the UK new car and van market.

Chief executive Mike Hawes said: “We want regulation that gives consumers choice and affordability, and enables manufacturers to transition sustainably and competitively.”

But he added: “While the proposals rightly reflect the sector’s diversity, late publication and lack of regulatory certainty make product planning near impossible, and the continued lack of clarity as to what technologies will be permitted beyond 2030 undermines attempts to secure investment.”

The BVRLA said the new ZEV mandate consultation showed that the Government had “delivered essential clarity and certainty for the fleet and mobility services sector and its supply chain”.

Chief executive Gerry Keaney commented: “The ZEV mandate is a critical tool in the UK meeting its ambitious net zero targets. The clarity given today will give fleets and motorists the confidence to continue their decarbonisation journey and accelerate the transition to zero emission transport.

“BEV demand is growing – driven by company car fleets – where over 50% of new registrations are electric. We now need supply to keep pace by providing a wider range of vehicles at all price points. The ZEV mandate will help to ensure the right vehicles are coming to the UK, allowing more drivers to make a swift switch to electric.”

The association added that the Government had also responded to its request to make the zero-emission van sales target trajectory more ambitious, with much less reliance on hybrid vehicles.

“We look forward to working with the Government as it implements this mandate and monitors the impact on the new vehicle market,” Keaney added.

The FairCharge campaign also greeted the news, saying it was delighted ministers hadn’t “caved in to vested interests”, referencing the developments in the EU.

Quentin Willson, auto journalist and founder of the campaign, said: “These targets will send a clear message to the EV sector that UK electrification of road transport is here to stay and will benefit future generations with more highly skilled jobs, greater levels of investment, more charging infrastructure and cleaner urban air. This is a good day for British drivers.”

Eco group Transport & Environment also applauded the Government’s ambition but said failure to increase the ambition of its proposed car targets meant the regulation would be weaker than it should have been.

It said the proposed trajectory for cars “merely follows conservative estimates of what the market will do in a business-as-usual scenario”; it recommends targets of at least 33% in 2024 to set the UK on an ambitious pathway for battery electric vehicles.

And T&E said the proposed van targets still fell short of the minimum 15% that should be expected for 2024 and 80% in 2030.

UK director Richard Hebditch said: “The ZEV mandate sets a clear path for 100% zero-emission sales by 2035, providing much-needed certainty for consumers and industry. The question is no longer whether the internal combustion engine’s days are numbered, but how fast we get there.”

Other organisations welcoming the news included Octopus Electric Vehicles, which said the industry needed clarity and decisive action to place the UK EV market in pole position.

Fiona Howarth, CEO, added: “The devil will be in the detail, and this is our chance to further drive down costs and encourage new models to enter the market, giving drivers access to cheaper, greener, tech on wheels transport.”

And Andrew Wescott, director of sustainability & regulation at Addison Lee, said the consultation was an important signal to the entire EV market in the UK.

“We know that more charging infrastructure is required and, if properly implemented, the ZEV mandate will give charge point operators the confidence to invest in the charging network, and fleet operators the ability to more readily shift to fully electric vehicles.”

More money for charge points

The new Powering Up Britain plans also set out the Government will “enhance our country’s energy security, seize the economic opportunities of the transition, and deliver on our net zero commitments”. Other announcements made included the launch of the £381m Local Electric Vehicle Infrastructure (LEVI) fund alongside an additional £15m for the On-Street Residential Charging Scheme (ORCS). The DfT said the funding will support the installation of tens of thousands of new chargers across the country, increasing EV infrastructure in every area and “ensuring the UK’s charging network can support the increasing number of EV drivers and those considering the switch”.

Technology and Decarbonisation Minister Jesse Norman said: “As today’s announcements show, the Government is doing more than ever to help the UK move away from petrol and diesel and towards electric vehicles. That means investing in charging infrastructure and giving a clear direction to manufacturers, so they can roll out new electric vehicles faster and more efficiently. Overall, the UK is leading the way in decarbonising transport, a sector that is one of the biggest contributors to greenhouse gases.”

The Government also published its response to the 2021 consultation on consumer experience at public charge points, confirming it will impose requirements on public charge points concerning the methods of payment and reliability, and that it will appoint an appropriate body to enforce the new regulations.

The SMMT’s Mike Hawes said: “Measures to improve the customer charging experience are a step in the right direction, but the fact that contactless credit or debit card payments will not be available on the vast majority of public chargers is a major failing that will significantly disadvantage EV drivers. It is also disappointing that, unlike in other countries, there is no commensurate regulation to drive investment into the public network given that paucity of charge points remains the biggest barrier to buying an electric vehicle. Ultimately, for this mandate to be successful, infrastructure providers must now turn promises into investment and catch up with the commitments of vehicle manufacturers.”

The Powering Up Britain plans also included announcements on hydrogen power, carbon capture, nuclear energy, offshore windfarms and home heat pumps, amongst other areas.

• The ZEV mandate consultation is open until 11:45pm on 24 May 2023 and is being run jointly with the Scottish and Welsh governments and the Department for Infrastructure, Northern Ireland. To have your say, click here.