Weakening ZEV mandate targets would threaten billions of pounds of UK investment, the UK government has been warned.

Ministers have been urged to urgently recommit to existing EV sales targets

Organisations and investors spearheading the rollout of EV charging infrastructure across the UK have issued a coordinated call on Ministers to urgently recommit to existing EV sales targets.

The joint warning comes from BEAMA, ChargeUK, REA and UKSIF, which have urged the Government not to cave to “short-sighted demands” from carmakers to water down the commitment to sell a minimum of 22% zero-emission cars in 2024, rising to 80% in 2030 and 100% in 2035.

These organisations represent UK charge point operators, manufacturers, service providers and the companies responsible for all associated infrastructure for grid connection and metering, as well as the industry’s investors.

They say that changes to legally enforced EV sales targets may be supported by some vehicle manufacturers, but would put thousands of jobs throughout the low-carbon transport supply chain at risk.

And instead they’re calling for a “swift, decisive and public” confirmation by the Government that EV sales targets will remain unchanged to enable private investors to fund rapid rollout of charging infrastructure, and to reassure consumers that their next vehicle should be zero emission.

The new government has spotlighted low-carbon industries as among the core drivers of UK economic growth, identified as “key growth driving sectors” within the Government’s recent Industrial Strategy Green Paper essential to the delivery of both its Clean Power 2030 and Economic Growth Missions.

The Prime Minister also reiterated during his recent visit to the Gulf that securing economic growth is the pre-eminent mission of his administration – and the authors behind the warning to government say it would be inconsistent to inject further market uncertainty discouraging investment in low-carbon vehicles and infrastructure.

As outlined in last week’s National Audit Office report, the EV charging industry is currently on track to exceed 300,000 public chargers by 2030. ChargeUK research shows that we are currently close to one home, workplace or public charger for every EV in the UK today, with on average one new public charger being deployed every 25 minutes.

This charging growth has been funded principally by private investment, with £6bn already committed through some of the UK’s charge point operators under the ChargeUK association.

But 57 of the 100 largest UK transport companies, representing £900bn in turnover, have moved or plan on moving investments out of the UK to a market that is more supportive of their sustainability goals.

The Conservative government’s decision to move the phase-out date for new petrol and diesel cars from 2030 to 2035 dented both investor and consumer confidence. Regardless, infrastructure investors have been able to continue to invest billions thanks to the ZEV mandate, which sets legal quotas for the percentage of EVs that manufacturers must sell each year. Indications this may be watered down is impacting investment intentions.

Yselkla Farmer, CEO of BEAMA, the trade association for energy infrastructure and systems, commented: “We cannot underestimate the impact moving the goal posts again could have on UK investment and pace of electrification. We recently published our plans for a UK Industrial Strategy which makes a strong case for the growth opportunities stemming from this sector. A decision to back track on the ZEV mandate will be entirely counter to the UK’s longer term ambition to drive inward investment for manufacturing.”

Vicky Read, CEO of ChargeUK, said: “ChargeUK members are keeping ahead of demand by rolling out the infrastructure to ensure drivers have access to the right charging solution in the right place. But this hasn’t happened by accident, our members have been able to put in the hard work confident the Government backed their efforts. We need ministers to reconfirm that they will stand by the current ZEV mandate or they risk fatally spooking the very investors they say they are so keen to attract to the UK.”

Trevor Hutchings, CEO of the association for renewable energy and clean technology (REA), said: “The Government will not achieve its legally binding net zero targets without decarbonising transport. Electric vehicles are essential to this so watering down sales targets would be an own goal. It would also put at risk investment and jobs at the very time when we’re in a global race to secure manufacturing in these technologies. Instead, the Government should focus on encouraging further consumer uptake rather than shifting the goal posts.”

James Alexander, CEO of UK Sustainable Investment and Finance Association (UKSIF), remarked: “Private finance is ready and waiting to finance electric vehicles and charge points, but other geographies are doing a better job of providing a transparent, consistent policy approach, and the UK risks losing out.”