The UK Government is set to impose a new Zero Emission Vehicle (ZEV) mandate on January 1 after the legislation gained approval in a Parliamentary vote on Monday night, BusinessGreen reports.
UK’s ZEV mandate
Green Alliance lauded the passage of the legislation as a “significant boost” in the UK’s efforts to cut the transportation sector’s CO2 emissions and to accelerate electric vehicle adoption.
For context, the newly approved legislation will mandate UK automakers to follow an increasing minimum quota for electric vehicle production over the following years.
To be specific, automakers must have 22% of their car sales be ZEV in the UK starting next year. The rate will gradually increase to 33% in 2026 and 52% in 2028.
These thresholds are crucial for the country to reach its targets of 80% zero-emission car sales in the overall automotive market by 2030, increasing to 100% by 2035.
On the other hand, zero-emission van sales must account for 10% of the market in 2024. The rate will increase to 34% in 2027 and 70% in 2030.
Over-performance credits
The new legislation will impose a fine of £15,000 for every car that automakers fail to meet the minimum quota, while each van will cost them £18,000.
Fortunately, the legislation will allow automakers to borrow limited ZEV allowances from future production plans via an “over-performance credits” system.
Those who have exceeded their production targets can sell their allowances to those who have fallen short of targets at a mutually agreed price.
Potential benefits
According to the Energy & Climate Intelligence Unit (ECIU) Head of Transport, the legislation will also advance the second-hand EV market that will appeal to average UK households.
“It will also speed up the growth of the second-hand market, which is where the majority of UK households will be able to afford to make the transition to EV ownership. The ZEV Mandate will play a vital role in helping UK families access and enjoy the savings that come from owning an EV.”
Colin Walker, Energy & Climate Intelligence Unit (ECIU) Head of Transport
Walker further emphasized the need for charging infrastructure development to support the accelerating shift towards more sustainable mobility.
“We now need to see the UK government follow up on its plans to support the transition by ensuring the UK’s charging infrastructure continues to develop, and to work with industry and others to tackle the myths that circulate about EVs and EV ownership.”
Colin Walker, Energy & Climate Intelligence Unit (ECIU) Head of Transport
Apart from boosting the electric vehicle industry, it will also significantly reduce consumers’ annual fuel expenses by thousands of pounds due to increasing prices of petrol and diesel products.
Notably, the approval of the new ZEV mandate came after Prime Minister Rishi Sunak delayed the 2030 sales ban on new petrol/diesel-powered vehicles to 2035. According to ECIU’s recent analysis, the ZEV mandate can generate a total of £39 billion net benefit for the UK economy.
