Mandatory salary sacrifice and EV loans needed to drive decarbonisation

A range of measures to cut emission from transport, including making salary sacrifice schemes for electric vehicles (EVs) mandatory, have been recommended to Government. 

The Renewable Energy Association (REA) argues that mandatory salary sacrifice schemes should be introduced for medium and large businesses as well as a new fund for depot charging, to overcome grid connection issues in its response to the zero emission vehicle (ZEV) mandate consultation. 

It has also called for an increase to road fuel duty; a Government-backed loan scheme for consumers to buy an EV; and the rapid charging fund to include HGV charging infrastructure.

Furthermore, the trade body recommends increased credits for vehicle-to-grid (V2G) compatible vehicles and is urging the Government to ‘stick to its guns’, with any flexibilities in the ZEV mandate not stretched beyond 2026.

“Reaching net zero will require collaboration on a scale that has never been seen before,” said REA’s head of transport and innovation, Matthew Adams.

“The transport and energy sectors are responsible for roughly two-thirds of global greenhouse gas emissions; with many of these emissions stemming from energy production and usage across various sectors, including transportation.

“Our members represent many of the businesses and organisations who are tasked with trying to reduce emissions. 

“By implementing our recommendations and sticking to their guns with the ZEV mandate, the Government can make the UK a leader in zero-emissions transport with the country benefiting from all the health and economic opportunities that will be brought about from this. 

“If it doesn’t then all the progress that has been made with the rollout of charging infrastructure and increased sales of EVs will be at risk, creating uncertainty in the market. In our view, the choice is an obvious and stark one.”

Full hybrid opposition

The REA also strongly opposes the inclusion of full hybrid vehicles within its response to the consultation, as it says that the CO2 emissions from HEVs have a significantly higher CO2 emissions range and ultimately their electric batteries are powered by petrol and diesel.

The trade association is also opposed to the increasing of flexibilities around the annual targets beyond 2026, which currently include carbon trading and ‘borrowing’ credits from future years. 

Adams said: “If the Government is serious about reaching its zero-emissions targets then it must remain steadfast in its commitments and keep the ZEV mandate as is. 

“This isn’t the time to bow down to the demands of certain vehicle manufacturers and any ‘zero emission’ ambition must align with the technology that will help us get there. That’s battery electric vehicles and not full hybrid vehicles, which are essentially petrol vehicles in all but name.” 

Adams argues that an “impactful” ZEV mandate should always ensure that policy is implemented that maximises carbon emission savings. 

“Increasing flexibilities will result in slower uptake of EVs, reducing the immediate impact on air quality we need to save lives today,” he added. 

“By sticking to their guns, the Government will show that they’re serious about their clean transport and energy plans and this will ultimately have a huge, positive impact on air quality leading to a healthier and wealthier nation.”

You can read the REA’s full response to the ZEV mandate consultation here.