ZEV Mandate Targets Set to Be Watered Down Under Labour Plans

ZEV Mandate Targets Set to Be Watered Down Under Labour Plans image

The UK government is preparing to soften the country’s zero emission vehicle (ZEV) mandate targets following intense pressure from the automotive industry, according to reports.

The mandate requires manufacturers to ensure a minimum proportion of new car sales are zero emissions vehicles or face fines up to £12,000 per vehicle. Current targets demand 33% of new cars be electric by 2026, rising to 80% in 2030 and 100% in 2035.

Government officials are reportedly planning to consult on reducing these targets after car makers argued the current requirements can’t be achieved.

The Sunday Times first reported the news, which critics have called an “astonishing act of self-harm.”

According to the Sunday Times, the 2030 target could drop to as low as 50%.

However, government sources told the Guardian that the 2030 ban on pure combustion engines will remain. Hybrids and plug-in hybrids would fill the gap.

Industry Pushback on Targets

The Conservative government introduced the ZEV mandate in 2023 to cut transport emissions. The targets rank among the world’s most stringent – and car manufacturers have consistently called them unachievable since implementation.

Electric vehicle sales have grown rapidly. May 2024 saw sales jump 34% compared to May 2023.

But EVs still captured just 27% of market share, well below the 33% required by year-end. The Society of Motor Manufacturers and Traders (SMMT) claims sales rely on “unsustainable” discounting.

The government had planned to review the mandate in 2027 but is bringing this timeline forward.

Mike Hawes, SMMT chief executive, said the current framework no longer works.

“It’s clear that the assumptions underpinning the mandate no longer hold. It was designed for a market with stronger demand, greater stability and cheaper energy – not the market we have today. An urgent review of the ZEV Mandate is therefore essential. This is not about weakening ambition, but restoring credibility. Regulation must reflect real-world conditions.”

Warning Against Policy Retreat

Vicky Read, chief executive of charging industry body ChargeUK, called any mandate changes a backward step.

“Weakening the ZEV Mandate for a third time would not only slam the brakes on infrastructure rollout and send the entire transition into a tailspin. It would bring Britain’s entire reputation as a market worth investing in into disrepute.”

She criticized potential policy reversals after the government promised stability.

“This government said it would not flip flop like the previous did. To move the goalposts again would be exactly that – an act of self-harm denying the country a forward facing, economically prosperous industry leaving us behind the rest of the world.”

Matt Adams from electrotechnical trade union BEAMA warned that weakening targets sends the wrong message to investors.

“Investors back certainty. Weakening the ZEV mandate risks sending exactly the wrong signal to businesses backing the UK’s EV transition. Manufacturers have committed to the UK because government set out a clear and ambitious direction of travel for electrification. Moving the goalposts now risks undermining confidence just as demand for electric vehicles and charging infrastructure continues to grow.”

Guy Bartlett, CEO of charging operator Believ, said backtracking would hurt the UK’s competitive position globally.

“At a time when markets such as China are moving quickly and with clear intent, the UK cannot afford to send mixed signals on the pace of the EV transition. If this review results in further flexibilities, it will look less like leadership and more like hesitation at exactly the moment the market needs certainty.”

He warned that softening the framework could slow infrastructure investment in underserved areas.

“Any softening of the framework risks slowing EV uptake, creating greater uncertainty for infrastructure investment, and making it harder to justify rollout in lower-utilization and harder-to-serve locations. That would directly disadvantage the drivers and communities who are relying on public charging to make the switch.”

Nash Peterson avatar
Nash Peterson