ZEV mandate consultation | DfT rules out ‘expensive’ e-fuels

The Government is sticking with its ban on the sale of new internal combustion engine (ICE) cars and vans from 2030, ruling out “expensive” e-fuels as an alternative.

It has also launched a consultation on its plans for a zero-emission vehicle (ZEV) mandate and committed almost £400 million to improving the electric vehicle (EV) charging network.

The announcements are included in plans, published today (Thursday, March 30), which set out how the Government will enhance the country’s energy security, seize the economic opportunities available and deliver on its net zero commitments.

E-FUELS RULED OUT FOR CARS AND VANS

With the EU and Germany reaching an agreement that will allow some ICE cars to be sold beyond 2035, if they fill up exclusively with CO2-neutral fuels – so-called e-fuels, fleets had wondered whether the UK may follow suit.

However, the Department for Transport (DfT) told Fleet News it was not considering e-fuels as an alternative to petrol and diesel.

A DfT spokesman 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.”

Instead, the Government has committed to the 2030 phase out of ICE vehicles in its policy paper, ‘Powering Up Britain - Energy Security Plan’.

ZEV MANDATE CONSULTATION

The ZEV mandate will force manufacturers to sell a certain proportion of electric vehicles (EVs) in the lead up to 2030.

In 2024, these targets will be 22% for cars and 10% for vans, and in 2030 will be increased to 80% and 70%, respectively.

The British Vehicle Rental and Leasing Association (BVRLA) welcomed the Government’s commitment to introduce a ZEV mandate from January 2024.

In sticking with its 2030 phase-out target for new ICE vehicle sales and providing a clear trajectory, the trade body said that the Government had delivered essential clarity and certainty for the fleet and mobility services sector and its supply chain.

It was also pleased to see that policymakers had listened to the BVRLA’s requests to provide additional ZEV credits for car clubs and wheelchair accessible vehicles – ensuring that zero emission motoring will be accessible for disabled and shared transport users.

“The ZEV mandate is a critical tool in the UK meeting its ambitious net zero targets,” said Gerry Keaney, chief executive of the BVRLA.

“The clarity given today will give fleets and motorists the confidence to continue their decarbonisation journey and accelerate the transition to zero emission transport.”

He continued: “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.”

A consultation on the details of the Government’s ZEV mandate plans for cars and vans has been launched to coincide with the publication of its policy paper.

Following the technical consultation on the design of the ZEV mandate for new cars and vans in June 2022, and the green paper on a new road vehicle CO2 regulatory framework in July 2021, it is now seeking views on the final proposed regulatory framework.

It is specifically consulting on: the level of ZEV uptake (trajectories); 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.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), also welcomed the ZEV mandate consultation. 

He said: "We want regulation that gives consumers choice and affordability, and enables manufacturers to transition sustainably and competitively.

“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.

“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 chargepoints 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."

He added: “The UK new car and van market is already moving at pace towards electrification, the result of massive investment by manufacturers and increased consumer demand.

"If the UK is to lead the global race to zero emission mobility, however, it must go further and faster in unlocking infrastructure investment, incentivising EV ownership and helping ensure more of these vehicles are developed and built in Britain.”

Ministers say that they will use evidence from the consultation, which closes on May 24, to finalise the design of the ZEV mandate and CO2 emissions regulation.

Fiona Howarth, CEO of Octopus Electric Vehicles, said that the “devil will be in the detail”. She added: “The ZEV mandate will set the roadmap towards 2030 zero emissions transport - cutting harmful emissions for both people and the planet.

“We need to end our reliance on imported fossil fuels as we transition to zero emission vehicles powered by homegrown green energy.”

NEW CHARGE POINT FUNDING

The Government has also announced it will invest a further £381 million through the Local Electric Vehicle Infrastructure (LEVI) fund, along with £15m for the On-Street Residential Chargepoint Scheme (ORCS), to help install tens of thousands of new chargers across the country – alongside private sector investment.

Last month, the Government said it was expanding its LEVI pilot, with 16 more councils receiving funding to deliver new charge points. 

The scheme is aimed at delivering EV charging infrastructure for residents, from faster on-street charge points to larger petrol station-style charging hubs.

Taken together, the new funding will support the installation of tens of thousands of new chargers across the country, says the DfT, 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.

Transport secretary Mark Harper said: “Transport is one of the most important sectors for achieving net zero by 2050, and so we must accelerate our efforts to decarbonise how people get from A to B while growing our economy and supporting thousands of green jobs.

"Today’s announcement is a great stride forwards - offering people more choice on how to stay connected while delivering the carbon reductions needed to achieve net zero.”

This story is constantly being updated.