Why keeping the ZEV mandate on the right track is key to sustaining electrification

By Nick Williams, transport managing director at Lloyds Banking Group

Last year saw a record-breaking number of new electric vehicles (EVs) joining UK roads. In all, 16.6% of registrations were battery powered vehicles, surpassing diesel for the first time to become the second most popular choice after petrol.

As we move another year closer to the UK’s 2030 ban on the sale of new petrol and diesel cars, we need to rapidly increase the market share of EVs on the road.

The Society of Motor Manufacturers and Traders (SMMT) forecasts that overall registrations will reach 1.79m across the whole of 2023, up 11.1% on the previous year.

This makes it even more important that we significantly boost the supply of EVs in the UK, to ensure there are enough vehicles to meet demand.

Mandating a low carbon future

On the Government’s recent ‘green day’, a two-month consultation period was announced for its proposed Zero Emissions Vehicles (ZEV) mandate.    

Under plans, from 2024, 22% of manufacturers’ new car sales will be required to be electric each year, rising year on year to 80% in 2030 and 100% by 2035 – the phase out date for all carbon emitting vehicles.

Different targets are proposed for vans, while small manufacturers will be exempt up to 2029. Some plug-in hybrids will be permitted to remain on sale until 2035.

Manufacturers that fail to achieve these targets will be subject to financial penalties, with a system of credits which can be traded between manufacturers or used to produce additional non-compliant cars suggested.

The announcement sends a clear message from Government to both industry and drivers that the future of motoring is electric, and the UK is committed to its net zero targets.

It is a crucial step in increasing both the availability of EVs and the variety of new models coming to the market.

In addition to creating greater competition and providing drivers and businesses with more choice, bringing more EVs to the roads ahead of the 2030 ban will also boost the second-hand market, making them more affordable and accessible for years to come.

A mandate will also drive investment, not just by incentivising manufacturers to focus more on EV technologies but by prompting greater funding for the country’s charging infrastructure from government and the private sector alike.

A ticking clock

The ZEV mandate is key to helping us achieve our targets and lessen our impact on the environment in the long term.

The announcement of the consultation is a crucial step in the right direction, helping keep the mandate on track for its slated 2024 introduction. However, the devil remains in the detail.

With just under nine months remaining before manufacturers need to comply with initial targets, many elements of the mandate remain unconfirmed or potentially subject to change during the consultation period.

If we are to ensure the UK remains on track to net zero, it’s crucial that the consultation period is used effectively to finalise policy details, on schedule.

This will help give manufacturers the certainty they need and allow them to ramp up production in time. It will also provide businesses and drivers with the confidence to make EV investment decisions, knowing that the UK is committed to supporting an electric future.

In Europe, we have recently seen legislation to end the sale of new ICE cars by 2035 come up against significant opposition.

Germany’s Transport Minister moved to withhold support for the deal, only relenting when legislation was softened to allow vehicles run on e-fuels. Other countries, including Poland, Bulgaria and Italy, continue to voice opposition.

It’s vital that the UK doesn’t follow suit and allow any opposition presented during the consultation period to put the brakes on its commitments.

Every year a mandate isn’t in place takes us closer to the ban on new ICE vehicles without a clear path to get there.

Equally, any softening of proposed yearly targets allows more polluting vehicles to stay on the roads longer and depletes the number of EV vehicles available to drivers in the future.

Last month’s announcement was a bold step forward. However, we hope to see a robust ZEV mandate with ambitious interim targets over the 2020s finalised, setting the UK on a clear path to net zero, securing a sustainable future for the fleet sector while ensuring we are a global leader in EV adoption.