ZEV mandate with electric vehicle sales targets becomes law

By / 11 months ago / UK News / No Comments

New laws requiring car and van makers to sell a minimum percentage of zero emission vehicles have come into force in Britain as of today (3 January 2024).

The ZEV mandate will levy increasingly stringent EV quotas on manufacturers in the run-up to the 2035 ICE ban

Finally confirmed September 2023, the zero emission vehicle mandate will levy increasingly stringent EV quotas on manufacturers in the run-up to the 2035 ICE ban. For 2024, this is set at 22% of all new cars sold, rising every year thereafter until a target of 80% at 2030 and the 100% target by 2035. Van targets are softer, reflecting the challenges of electrification in this sector; the goal is for 10% this year and 70% in 2030 but with the same 100% target by 2035.

Following the Government’s move to push the ICE ban back from 2030 to 2035, the ZEV mandate is now seen as the single biggest mechanism to deliver decarbonisation of cars and vans on British roads.

According to the Government, the mandate is the largest carbon-saving measure in its Net Zero Strategy – and means the UK now has the most ambitious regulatory framework for the switch to electric vehicles of any country in the world.

The Department for Transport (DfT) said the new laws would “help households make the switch to electric, supporting growth of EV sales in the second-hand market and incentivising charging to roll out more widely across the country”.

Technology and decarbonisation minister Anthony Browne said: “Alongside us having spent more than £2bn in the transition to electric vehicles, our zero emission vehicle mandate will further boost the economy and support manufacturers to safeguard skilled British jobs in the automotive industry.

“We are providing investment certainty for the charging sector to expand our charging network which has already grown by 44% since this time last year. This will support the constantly growing number of EVs in the UK, which currently account for over 16% of the new UK car market.”

The DfT also pointed out the UK’s charging network continues to grow at pace, with more than 50,000 public charge points now live – and today also sees Anthony Browne visit a new BP Pulse hub in London to look at its ultra-fast EV chargers in action.

Akira Kirton, vice president, BP Pulse UK, said: “We are pleased to host the minister at our most powerful EV charging hub in central London to mark the start of the ZEV mandate.

“This mandate instils confidence in our strategy, reaffirming our plans to invest £1bn over 10 years to continue to develop hundreds of EV charging hubs across the country by 2030 to bolster the UK’s charging infrastructure.”

The ZEV mandate applies to England, Wales and Scotland. It’s expected that Northern Ireland will join the mandate when the Assembly is able to pass the required legislation. In the interim, it will retain a scaled version of the existing CO2 emissions regulation for new cars and vans.

The last month has also seen the UK and EU agreed to extend trade rules on electric vehicles, avoiding the risk of tariffs on EVs that would have pushed up costs for fleets and private drivers.

However, while the Government also pointed out the current Plug-in Van Grants available and the funding available for home charge points in flats and for local authorities to deploy charging, there are continued concerns over a lack of wider incentives for private drivers to go electric.

Speaking in September 2023 when details of the ZEV mandate were confirmed, Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders (SMMT), said: “It is worth noting the mandate means the UK still retains the most ambitious transition timeline of any major market but without any private consumer incentives. Furthermore, the lack of a post-2030 regulatory framework creates investment uncertainty.

“Manufacturers offer a vast range of zero emission vehicles, but demand must also match supply. We need a buoyant market that delivers fleet renewal at scale, ensures a vibrant used EV market and gives consumers confidence. This means an attractive package of fiscal and other incentives, mandated infrastructure targets and a consistent message that encourages drivers to switch now.”

Concerns about the issue of securing grid connections to maintain charge point infrastructure rollout also remain ongoing. In the 2023 Autumn Statement, the Government pledged to support grid reforms to cut connection waiting times.

David Hall, VP of Power Systems, at Schneider Electric UK&I, said: “In the transition to net zero, actions speak louder than words. Conversations about diversifying the UK’s energy system have been ongoing for decades, yet the UK is still on the back foot when it comes to energy resiliency. Projects to support the energy transition are being rolled out at a fraction of the necessary pace required to support modern-day energy demands.

“With the ZEV mandate coming in effect today, there’s a heightened sense of urgency. Utility companies face pressure to accelerate the connection of low-carbon technologies to the grid, enhancing its flexibility.

“To achieve this, there is an urgent need for improved planning to enable a more rapid integration of renewables into the energy mix and provide greater incentives for long-term energy storage. This in turn will boost private investment and speed up the UK’s commitment to a net zero electricity system by 2035.”

And Daniel Auger IEEE senior member and Reader in Electrification, Automation and Control at Cranfield University, said that while today’s announcement was welcome, the challenges faced by EV rollout are multi-faceted.

“One of the biggest challenges facing the EV market is distribution and scaling up production. Charging stations need to be spread evenly throughout our cities; consumers should be able to charge conveniently, and more importantly, they need access to a fast charge. We also need to understand how to re-use, recycle and dispose of used batteries safely and efficiently. Lithium-ion batteries may prove helpful given their high technology readiness level. However, this will take time and will naturally require further investment if this new approach is to work.

“Research teams are now developing new battery materials and components of cells, and understanding the fundamentals of how they work and what makes them degrade. Others are focusing on modelling and managing batteries’ behaviour in use, predicting their future performance, and ensuring that we are using them in the best possible way. It’s also important to understand how cells behave together in a pack and ensure that they stay in a temperature range that promotes good longevity. Recycling and working with part-aged batteries will become increasingly important.”

For more of the latest industry news, click here.

Natalie Middleton

Natalie has worked as a fleet journalist for over 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.