The UK Zero Emissions Vehicle mandate - a good example of a regulation that provides certainty and can help unlock benefits to the wider population

As the end of the year approaches, now is a good time to reflect on an important climate policy in the UK that will drive progress to reduce emissions and deliver wider co-benefits. This has been on the introduction, in September this year, of the zero-emission vehicle (ZEV) mandate.

In my role as a member of the Climate Change Committee we welcomed the confirmation of the ZEV mandate. It will encourage the production and uptake of electric vehicles (EVs) by setting minimum requirements on the zero-emission share of each manufacturer’s new car and van sales. These requirements will increase each year, rising to 80% of a manufacturer’s sales in 2030 being zero-emission vehicles. The CCC’s analysis shows the mandate will save money for British motorists, improve air quality and help the UK meet its legislated climate targets.

There has already been a positive start to the UK’s transition to electric vehicles. So far this year, around one in six new vehicles sold has been fully electric. In the used market, battery electric vehicle (BEV) sales have continued to grow rapidly, increasing by 99.9% in the third quarter of 2023. To support this momentum, provide certainty to manufacturers and guide an increase in public charging infrastructure, the introduction of a ZEV mandate is welcome.

The ZEV mandate sets minimum annual targets for new cars to be sold that manufacturers must meet from 2024 through to 2030. It has provided clarity for manufacturers, businesses and motorists on the direction of the UK market and the rate of change that is required. This is particularly important where the UK faces competition from countries around the world implementing phase-out dates for new petrol and diesel vehicles.

Why is the ZEV mandate an important policy?

The ZEV mandate makes a difference to the UK economy in driving the electric vehicle transition, ultimately saving the country money. It also makes a difference in two other ways. It will help the UK in attracting manufacturers to grow their supply chains and provide good quality jobs, building on recent announcements from Ford (doubling down on its commitment to the UK as its European hub for EV powertrain production) and Stellantis (turning its Ellesmere Port into the UK’s first EV-only manufacturing plant).

Secondly, a framework setting out the number of EVs which will be sold can crucially help unlock investment for the development of public charging infrastructure. It allows the charging providers to understand the requirements for the number of chargers and respond appropriately, which will help build consumer confidence that chargers will be available when they need them.

Why is the ZEV mandate important for UK emissions?

The switch to EVs is the largest single driver of future emissions reduction in the UK Government’s Net Zero pathway. Setting ambitious targets for new EV sales will both enable early EV uptake among new car drivers and fleets and also accelerate the rate at which these flow through into the used car market, ensuring that more people will be able to move to an electric vehicle sooner – vital in the UK for meeting our legislated climate targets. As a typical EV is expected to be cost-saving to own relative to a conventional vehicle by the mid-2020s, this will also save UK motorists money.

Measures to increase the availability, attractiveness and affordability of low-carbon alternatives to car use, such as walking, cycling and public transport, will also be vital in reducing transport emissions. This should include aiming to make public transport more affordable relative to higher-carbon forms of travel and supporting local transport authorities in developing ambitious local transport plans.

Is there a role for this type of regulation elsewhere?

There is a clear role for regulation that provides certainty over a longer period of time. As the CCC assesses the UK’s progress in reducing emissions, our focus is on the delivery required to meet our legislated Carbon Budgets and Net Zero. The priority in this area is for effective and clear Government policies – such as this ZEV mandate – which lead to a response from business and people. The ZEV mandate is a positive step that can be applied to other relevant sectors, and also in other countries which are looking to reduce emissions and unlock benefits to the wider population.