A much-rumoured consultation on the UK’s Zero Emission Vehicle (ZEV) mandate is expected to open today, possibly leading to a relaxation of targets.
The rumours follow last week’s meeting between the Government and vehicle makers, as well as an announcement today by Stellantis of a proposal to close its Luton plant and consolidate electric van production at Ellesmere port “in the context of the ZEV mandate”.
According to reports, a fast-track consultation could open today, paving the way for changes to targets.
The Department for Transport declined to comment on the rumours.
According to reports, a fast-track consultation could open today, paving the way for changes to targets.
The Department for Transport declined to comment on the rumours.
According to reports, government ministers are reportedly refusing to back down on the deadlines for the penalties and are holding firm for now on the level of the fines but are open to new “flexibilities” after last week’s meeting held by Transport Secretary Louise Haigh and Business and Trade Secretary Jonathan Reynolds with vehicle makers including Stellantis, Nissan and Ford.
The meeting followed lobbying from OEMs, warning of “irreversible damage” from the EV rules. Stellantis said in June that it could pull production from the UK unless there was more support for electric vehicles and has now announced its proposal to shutter Luton.
An official statement from the Government following the Stellantis announcement says it recognises the global challenges the industry has been facing which is why ministers have been regularly engaging with key industry figures to discuss how to ensure the transition delivers for them and the future of UK auto manufacturing. The Government has also said it’s determined to work in close partnership with industry as the UK moves back to a 2030 transition deadline.
Fleet operator Addison Lee said the “planned watering down” of the ZEV mandate was “clear evidence that the electric vehicle market is not where it needs to be, creating further pressures for fleet operators considering the shift to electric”.
The private hire giant has been warning about shortcomings with EV adoption for years and rowed back on its own plans to go EV-only by 2023.
Liam Griffin, CEO at Addison Lee, said: “Today, it still costs businesses significantly more to invest in EVs than ICE vehicles, with added uncertainty caused by an unreliable charging network.
“That’s why the Mayor of London must extend the congestion charge exemption (CCZ) for EVs. As the last remaining incentive for fleets, the Mayor has a vital opportunity to support businesses with the transition, until the market share of EVs increases.”
But eco groups and the charging sector have urged the Government to hold firm on the ZEV mandate.
ChargeUK, which represents the UK’s EV charging operators, said it was “foolish” to alter the zero-emission sales targets.
Vicky Read, CEO of ChargeUK said: “Government could not have been clearer last week in its meeting with the automotive and charging industries that there would be no tinkering with the percentages of electric cars that must be sold ahead of 2030. Any backsliding on that risks inducing the uncertainty that all sides agreed is the very enemy of the EV transition.
“Billions of pounds of investment in the EV charging infrastructure rollout will be put at risk should the ZEV mandate be redrawn. This would be particularly foolish given the charging industry is busy deploying the infrastructure that is essential for the automotive sector to sell EVs and for the UK to meet its net zero goals.
“ChargeUK members are getting on with the job – putting a new charge point in the ground every 25 minutes on average, and urgently need reassurance to enable them to follow through on our commitment to invest over £6bn up to 2030, ensuring we stay ahead of demand.”
And Dominic Phinn, head of transport at Climate Group, said: “As the UK government launches its ZEV mandate consultation, policymakers need to ask themselves a simple question: are they prepared to risk the incredible progress the UK has made in moving towards a cleaner, more sustainable transport system?
“Any changes to this world-leading legislation will seed uncertainty among businesses – threatening investments, business cases, and the clear and confident path so many companies across the country have put themselves on.
“There is absolutely no need for a relaxation. Contrary to intense lobbying from a small number of carmakers over recent weeks and months, demand for EVs is strong and growing. While sales of petrol and diesel cars are stalling, EV sales now account for 18% of the global market. The country’s leading companies need both the volume and the variety of models the ZEV mandate guarantees, as do British drivers who deserve their next car to be electric.”
UK businesses who are members of the EV100 network, including BT Openreach, Ovo, SSE, Grundfos and Zenith have also spoken out in support of the ZEV mandate.
