- UK enforces Zero Emission Vehicle Mandate
- Requires increased electric car sales
- Penalties for non-compliance
Automobile manufacturers are now obligated to sell a greater quantity of electric vehicles (EVs) from this year until 2035 when the sale of new petrol and diesel engines is prohibited, per new regulations that went into effect today.
Described by ministers as “the most ambitious regulatory framework in the world to facilitate the transition to electric vehicles,” the Zero Emission Vehicle (ZEV) Mandate, requiring manufacturers to increase their proportion of battery car sales annually, has been officially implemented.
The legislation mandates that by 2024, electric vehicles must account for 22% of all car registrations for mainstream brands. This percentage will increase to 28% the following year and to 80% by the end of the decade. By 2035, it will have reached 100%.
Automobile manufacturers that fail to meet the ZEV mandate sales targets may be subject to colossal penalties of £15,000 per model that falls short of the threshold.
The ZEV mandate also specifies the percentage of new zero-emission vans that automakers must transition annually. However, the thresholds for annual increases are comparatively lower than those applicable to passenger cars.
Declining the prohibition on the sale of new models with internal combustion engines, the government views the mandate as the most effective means of accelerating the transition to cleaner vehicles over the next decade.
Prime Minister Rishi Sunak declared in October that he would extend the deadline for the prohibition on the sale of new petrol and diesel vehicles from 2030 to 2035, bringing the United Kingdom in alignment with other major global economies, including Canada, France, Germany, and Sweden.
Government Supports Electric Vehicle Transition
The Department for Transportation states that this will “provide time for consumers to consider switching to electric vehicles and to improve our charging infrastructure.”
Furthermore, the government asserts that a Climate Change Committee analysis indicates the Prime Minister’s pragmatic approach will not significantly impede the nation’s efforts to reduce emissions.
Ministers are of the opinion that the mandate is the most effective method for furnishing the Treasury with an exact forecast of the rate at which it will incur a loss of fuel duty revenues over the subsequent eleven years. These revenues amounted to £25.1 billion in the Treasury’s coffers in 2022.
It should also compel manufacturers to introduce more affordable battery models to the market sooner so that EV ownership is feasible for a broader range of consumers.
In observance of the enactment of the ZEV mandate, Anthony Browne, minister of technology and decarbonisation, visited one of the most recent BP Pulse EV charging stations located in the capital.
“In addition to investing over £2 billion in the transition to electric vehicles, our zero emission vehicle mandate will support manufacturers in preserving skilled British jobs in the automotive industry and further stimulate the economy,” he said.
“By ensuring investment certainty in the charging sector, we are able to further develop our charging network, which has experienced a substantial 44% growth since this period last year.”
This will bolster the ever-increasing number of electric vehicles (EVs) in the United Kingdom, which account for more than 16 percent of the new car market at present.
SMMT Anticipates EV Sales Impact
At the end of this week, the Society of Motor Manufacturers and Traders (SMMT) is scheduled to release the automobile registration figures for the entire year 2023. These figures will additionally validate the volume of electric vehicle (EV) sales and their current market share. Anticipated: EV sales will fall 8 percentage points short of the ZEV mandate threshold this year.
Mike Hawes, chief executive officer of the SMMT, stated, “The sector is allocating billions of dollars towards decarbonisation efforts and acknowledges the criticality of the zero-emission vehicles mandate in attaining net zero.”
Without private consumer incentives, the regulation ensures that the United Kingdom maintains the most ambitious timeline of any significant market to date.
Manufacturers must offer zero-emission vehicles commensurate with demand.
Inspiring all consumers to invest in electric vehicles (EVs) is crucial for fostering a robust EV market. This requires a compelling combination of financial incentives, mandatory infrastructure goals, and a unified message that urges drivers to transition immediately.
Vice president of BP Pulse UK Akira Kirton stated, “This mandate reaffirms our plans to invest £1 billion over a decade to further develop hundreds of EV charging hubs across the country by 2030 to strengthen the charging infrastructure in the United Kingdom.
The mandate permits automakers to sell a specified proportion of their new car and van fleet as non-ZEVs, with the expectation that the remaining sales will be ZEVs.
Purchasing allowances from other manufacturers, utilizing allowances from past or future trading periods in the policy’s initial years, or offsetting with credits may be utilized to cover any excess non-ZEV sales.
ZEV Mandate: Penalties, Credits, Challenges
Non-compliance with the targets by manufacturers results in financial penalties of £15,000 per non-ZEV car and £18,000 per non-ZEV van.
Additional credits go to handicap-accessible or car club-equipped automobiles.
While the government asserts that the new legislation will facilitate the transition of households to electric vehicles, promote the expansion of the secondary EV market, and expedite charging infrastructure, it has thus far neglected to address industry demands for supplementary incentives and value-added tax reductions on public charging stations, which would further propel the current sales of battery-powered vehicles.
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Since the Plug-in Car Grant ceased to operate in June 2022, consumers are now solely eligible for substantial personal tax benefits on electric company vehicles, grants designated for electric vans, and a £350 contribution towards the expense of charge points for flat-dwelling individuals.
Sue Robinson, the chief executive officer of the National Franchised Dealers Association, an organisation that advocates for car and commercial retailers throughout the United Kingdom, expressed her approval of the ZEV mandate’s enactment today. She characterises it as “a pivotal policy that will significantly impact the automotive retail sector in its continuous transition to electric vehicles.”
She further stated, “However, the government still has the responsibility to do more in order to sustain the favourable trend in electric vehicle registrations and enhance public trust in these environmentally friendly and cleaner vehicle categories.”
In the most recent Consumer Attitude Survey conducted by the NFDA, 62% of over 800 driving licence holders in the United Kingdom cited cost as the reason they were not interested in purchasing an electric vehicle, while 57% cited the dearth of charging infrastructure in the country.
Northern Ireland’s EV Concerns
Additionally, Northern Ireland will not be subject to the ZEV mandate, which will only apply to England, Wales, and Scotland. This occurs in the context of Northern Ireland having less than 1% of the total charging terminals in the United Kingdom, of which an alarming percentage are obsolete and unreliable.
Concern arises therefore undoubtedly due to the fact that Northern Ireland will lag further behind the rest of the United Kingdom.
Robinson further stated, “Although the ZEV mandate is undoubtedly a positive development, the government must improve EV charging infrastructure nationwide and provide more enticing price incentives to boost consumer confidence in electric vehicles and assist the nation in meeting its net-zero commitments.”
By the end of 2023, the DfT aims to have installed a minimum of six rapid or ultra-rapid outlets in each motorway service area in England.
An analysis of data by the RAC utilising charger locator service Zapmap revealed that only 46 out of 119 sites (or 39% of the total) achieved the goal.
The number of public charging stations is “spreading across the country,” according to the DfT.
