The REA Urges Government to Mandate EV Salary Sacrifice Schemes for Businesses
The Renewable Energy Association (REA) has called on the UK government to make electric vehicle salary sacrifice schemes mandatory for medium and large businesses as part of efforts to reduce transport emissions.
In its response to the Zero Emission Vehicle (ZEV) mandate consultation, the trade association also recommended increasing road fuel duty and creating a government-backed loan scheme to help consumers purchase EVs.
The REA wants the government to maintain the current ZEV mandate structure, ensuring any flexibilities aren’t extended beyond 2026. Findings from the consultation will be published in March this year.
“Reaching net zero will require collaboration on a scale that has never been seen before,” said Matthew Adams, the REA’s head of transport and innovation.
Under current ZEV mandate rules, carmakers must ensure 22% of their sales are zero-emission vehicles in 2024, rising to 28% in 2025. By 2030, this requirement jumps to 80% for new cars and 70% for new vans, before reaching 100% by 2035.
The REA strongly opposes including hybrid vehicles in the mandate, noting their significantly higher CO2 emissions compared to fully electric vehicles.
“Our members represent many of the businesses and organisations who are tasked with trying to reduce emissions,” Adams continued. “By implementing our recommendations and sticking to their guns with the ZEV mandate, the Government can make the UK a leader in zero-emissions transport with the country benefiting from all the health and economic opportunities that will be brought about from this.”
The trade body warns that backtracking on the mandate would create market uncertainty and risk progress made in charging infrastructure development and EV adoption.
Adams also expressed opposition to increasing flexibilities around annual targets beyond 2026, which currently include carbon trading and borrowing credits from future years.
“If the Government is serious about reaching its zero-emissions targets then it must remain steadfast in its commitments and keep the ZEV mandate as is,” he said. “This isn’t the time to bow down to the demands of certain vehicle manufacturers and any ‘zero emission’ ambition must align with the technology that will help us get there. That’s battery electric vehicles and not full hybrid vehicles, which are essentially petrol vehicles in all but name.”
The REA emphasizes that an effective ZEV mandate should prioritize maximum carbon emission reductions.
“Increasing flexibilities will result in slower uptake of EVs, reducing the immediate impact on air quality we need to save lives today,” Adams concluded. “By sticking to their guns, the Government will show that they’re serious about their clean transport and energy plans and this will ultimately have a huge, positive impact on air quality leading to a healthier and wealthier nation.”
