EV supply threat lifted with new Government CO2 targets

The Government has set out tough carbon emissions targets for carmakers after a warning a lack of legislation could threaten electric vehicle (EV) supply in 2021.

Environmental campaign group Transport and Environment (T&E) claimed that the UK could face long lead times for EV orders in 2021, with manufacturers having to meet targets to reduce the average emissions of the cars they sell in Europe or pay fines.

However, the Department for Transport (DfT) has now tabled similar regulations for manufacturers from January 1, 2021.

Currently, the European Commission sets an EU fleet average target that must be met by the EU fleet.  For cars, this target is currently 95g/km in 2020. For vans, the target is 147g/km in 2020.

These targets will be converted into WLTP CO2 emissions targets in 2021 following the change in the vehicle CO2 test procedure, and the 2021 actual emissions will represent the new baseline.

Manufacturers will then have to meet a 15% reduction for cars and vans by 2025, and a 37.5% reduction for cars and a 31% reduction for vans by 2030, both against this 2021 baseline.

From these, manufacturers receive individual targets that are set according to the mass of their fleet. Manufacturers with heavier fleets receive individual targets above the EU target; manufacturers with lighter fleets receive targets below the EU target.

Manufacturers will be fined for missing their targets. 

The new UK rules will mirror those in the EU, including fine an £86 fine for each g/km above the target multiplied by the number of vehicles registered in the year.

Manufacturers currently balance the CO2 emissions of new vehicles sold across the 28 individual EU markets to deliver compliance. They often offset sales of higher emitting vehicles in one market against sales of lower emitting vehicles in another.

Post-transition period, manufacturers will not be able to meet UK targets using sales in the EU27.

The Government launched a consultation in the summer on how it would adopt EU emissions targets for cars, vans and HGVs in January 2021. Read the Government response to the consultation here.