Changes are set to be made to the UK’s zero-emission vehicle (ZEV) mandate, the government has confirmed, following a backlash from car makers over the rules.
The decision was announced this evening by business secretary Jonathan Reynolds, who said he was “concerned” by how the current “inherited” laws “are working at the moment”.
The government will now consult with car makers to find “options for a better way forward”. Reynolds did not indicate what the changes could be, but did confirm the 2030 ban on new pure-combustion cars would remain.
“We get the seriousness of the situation and we get the urgency,” he said, adding that a decision would be made by January. “We know that you need certainty and that's why we will fast-track that consultation, giving you clarity on the direction of travel, and assuring you have the answers you need in the coming weeks before you make decisions in January.”
He added: “I want to do everything possible to make sure EVs are built here in Britain. The future of EV cars in the UK is not and should not be a negative story. It should be positive because the products are great.”
Currently the mandate states that car makers must achieve an EV sales mix of 22% in 2024 (rising incrementally each year to 80% by 2030) or face heavy fines for every non-electric car sold over the threshold.
However, EV sales are forecast to achieve only an 18.5% market share this year.
A lack of support from the government – such as EV buying or owning incentives – has been the key criticism from car makers, which say that the targets are unachievable without help, especially amid a general downturn in EV interest.
Talks held last week between car makers, transport secretary Louise Haigh and Reynolds confirmed the government wouldn’t budge on its 2030 ban date for new ICE cars but left the door open for amendments to the ZEV mandate.
In response to today's earlier reports that a decision was imminent, Lisa Brankin, managing director of Ford of Britain and Ireland, said: “Ford shares the UK government’s ambition for 100% zero-emission vehicles by 2035, but current market challenges are making the VETS [Vehicle Emissions Trading] scheme unworkable. We welcome today’s reports suggesting that there will be a fast-track review of the scheme and are pleased that the government is listening to industry at this crucial time.
"The end goal is not in question, but current demand for electric vehicles is lower than expected and not in line with the mandated trajectory. For manufacturers like Ford who have invested billions into new technologies and advanced manufacturing, there needs to be greater flexibility built into the scheme and government-backed incentives to help encourage customers to make the switch.”
Vicky Read, CEO of ChargeUK (the body that represents the UK’s major charger providers), added that although she was pleased the consultation would “bring much needed clarity”, any changes to the EV sales mix targets “risk inducing the uncertainty that all sides agreed is the very enemy of the EV transition”.
She added it would be "foolish" to redraw the ZEV mandate, because “billions of pounds of investment in the EV charging infrastructure roll-out will be put at risk”.
Her comments contrast the statement made last week by Nissan, which called on the UK government to make urgent changes to the ZEV mandate, warning that failing to do so risked "undermining the business case" for future investment.
The Japanese company, which employs 7000 people in the UK, called the targets “outdated”.
Its European chief, Guillaume Cartier, demanded “urgent action”, as the mandate “risks undermining the business case for manufacturing cars in the UK and the viability of thousands of jobs and billions of pounds in investment”.
