Government opens consultation on car and van ZEV mandate  

A new consultation that will shape the design of the forthcoming Zero Emission Vehicle (ZEV) mandate is now open, supporting plans for all new cars and vans to be fully electric by 2035. 

The consultation explores five areas for the ZEV mandate, including the level of ZEV uptake, how certificates could be allocated and used, and the banking, borrowing and transfer of ZEV certificates

It follows a commitment in last year’s Net Zero Strategy that the UK government would introduce such a mandate, setting targets requiring a percentage of manufacturers’ new car and van sales to be zero emission each year from 2024, supported by a system of enforcement and penalties. 

Open until 11:45pm on 10 June 2022, the consultation by the Department for Transport sets out potential design features of the mandate regulation and how regulation of the CO2 emissions from new, non-zero emission vehicles will work. 

While specific uptake trajectory targets are under consultation, the Government has set out its preference for 22% of new cars to be zero-emission in 2024, rising to over half (52%) by 2028 and 80% by 2030. 

The zero-emission van mandate will operate entirely separately from that of cars and a different trajectory is being considered, with a lower requirement in the earlier years. The Government has said its preference is to mandate 8% to be fully electric by 2024, 52% by 2030 – two years after cars – ahead of the 100% target by 2035. 

It also confirmed that while vans are defined as any vehicle of N1 Type Approval categorisation weighing up to 3.5 tonnes, N1 vehicles that weigh between 3.5t-4.25t, that are zero emission and weigh over 3.5t as a result of a zero-emission drivetrain will be part of the mandate and eligible for ZEV certificates.  

The document also explores how fines and penalties will work and says there will need to be two enforcement mechanisms: on a ‘per certificate’ basis for the ZEV mandate, fines and scaled fines for the CO2 emissions element, based on the number of vehicles sold and how much the target has been missed by.  

The consultation also specifically asks for views on how a certificate trading scheme might function, along with the banking, borrowing and transfer of ZEV certificates, and the possibility of derogations and exemptions within the ZEV mandate. 

A suggested longlist of ZEV certificate eligibility criteria has also been published and includes minimum range, battery efficiency, the requirement for vehicles to provide certain charging cables as standard and minimum requirements around vehicle and/or battery/drivetrain reliability.  

This technical consultation is additional to an outcome of the green paper on a new road vehicle CO2 emissions regulatory framework for the United Kingdom. Details of the full regulatory proposal will be published for public consultation later in the year, alongside a full impact assessment.  Secondary legislation will be laid in 2023, ahead of the mandate going live from 2024 and applying to manufacturers’ UK sales from that year.   

Industry response – ZEV mandate gives UK chance to lead the way in Europe 

Commenting on the technical consultation, BVRLA chief executive Gerry Keaney said: “The ZEV sales mandate is a vital part of the UK being able to reach its net zero targets. Its effective implementation will be the difference between the UK leading the way for decarbonisation or falling behind the rest of Europe.” 

The BVRLA also commended the consultative approach taken by the DfT and said it was pleased to see many of the association’s key considerations included within the plans.  

“We welcome the acknowledgment that vans require a different trajectory to cars, which has been a cornerstone of the BVRLA’s engagement on this issue. In the face of the worst supply crisis the industry has seen for generations, trajectories need careful consideration and must be kept under review as the supply chain stabilises.   

“The use of ZEV certificates, incentivising certain types of vehicles and different usage, is a crucial part of the delivery. Indeed, they will be a critical tool in alleviating the current supply issues and can ensure the flow of vehicles to channels such as rental and car clubs. The BVRLA will continue to work with the DfT to ensure those certificates are apportioned in a fair way and give due consideration to the distinct needs of fleets.” 

The proposals that half of all new cars sold in the UK may have to be fully electric by 2028 were welcomed by James Hind, CEO of online car marketplace Carwow.

Hind commented: “We believe that the vast majority of new car buyers should be buying electric cars today, and we are already seeing signs of a shift in consideration – when petrol prices hit record highs in March, searches for EVs on our site rose 37% in a week, and year-on-year are up 150%.

“The positives of electric far outweigh the few negatives; the fears that consumers have about electric are now often outdated or weren’t correct to start with.”

But Hind urged the Government to do more to encourage motorists to make the switch to EV, including incentives – he highlighted how German government-funded EV subsidies have had a significant effect on accelerating electric new car sales internally over the last couple of years.

“The RRP of electric cars versus similar internal combustion engine cars is significantly higher, so if the Government is serious on making this shift happen then they need to help lower the cost through incentives or subsidies.”

Carwow also called on the car industry to do more work on training dealership staff to help educate and inform prospective new car buyers about the advantages and realities of electric vehicle usage.

Peter McDonald, mobility sales director at Ohme, also commented: “It’s clear with a certificate system that car manufacturers would have to look beyond simply electrifying their range to meet the Government’s net zero strategy. Ohme’s Home Pro smart charger is alone in the industry of giving drivers the ability to charge their car when renewable energy generation on the national grid is at its highest. This can help aid manufacturers, fleets and businesses to meet corporate sustainability targets.” 

 

  • The consultation on the design features for the ZEV mandate is open until 11:45pm on 10 June 2022. For further details and to have your say, click here

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Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.