The UK's introduction yesterday of a new Zero Emission Vehicle (ZEV) mandate and a ZEV allowances trading scheme has been welcomed by many industry participants and campaigners.
"The ZEV mandate is a critical tool in the UK meeting its ambitious net zero targets," said Garry Keaney, chief executive of the British Vehicle Rental and Leasing Association (BVLA). "The clarity given [this week] will give fleets and motorists the confidence to continue their decarbonisation journey and accelerate the transition to zero emission transport."
The proposed minimum ZEV for new cars sold begins at 22pc in 2024, increasing sharply to 80pc in 2030 and reaching 100pc by 2035. The proposed minimum ZEV target trajectory for new vans sold begins at 10pc in 2024 and climbs to 70pc in 2030 and to 100pc in 2035.
The announcement comes after the European Council voted through its own electric vehicle mandates, with an exemption for cars using e-fuels and carbon-neutral fuels created with carbon capture and storage. Unlike the EU, the UK is not exempting e-fuels from the mandate — a move that may pose a challenge to some automakers but is welcomed by pro-electrification bodies.
Quentin Wilson, founder of UK-based FairCharge, said the UK is right to include cars running on e-fuels within the ban on combustion engine vehicles going forwards.
Several campaigners had signed an open letter to the UK government from Wilson, a UK TV presenter and former host of the BBC's Top Gear, to encourage the policy earlier, including Transport & Environment UK, GreenPeace and the BVRLA.
"European car makers lobbying against the 2035 combustion engine deadline stalled negotiations and made the EU soften their CO2 reduction legislation," he said. "The government is absolutely right to stick to its targets to phase out petrol and diesel cars from 2030 — lobbying from the European car industry is a red herring wrapped in self-interest and for the sake of green investment and clean air we strongly welcome this decision."
Allowance trading scheme
The new policy also set out plans for an allowance trading scheme, designed to help the slower transitioning carmakers to purchase allowances on internal combustion engine vehicles from the more successful ones.
The UK government said it recognises that some vehicle manufacturers "face challenges meeting targets in the initial years" as they electrify. Because of this, the proposal includes some "additional flexibilities" during the initial phase of the regulation, from 2024-26. Manufacturers will be allowed to borrow ZEV allowances from future periods if they are unable to achieve the targets during these years.
The number of allowances they can borrow is capped and will decline each year. Three-quarters of the target may be covered by borrowing from other carmakers in 2024, 50pc in 2025 and 25pc in 2026. Borrowing must then be repaid with 3.5pc annual interest to encourage carbon savings, and from 2027 borrowing from future trading periods would be banned and borrower deficits would have to be repaid by the end of that year.
"The ZEV mandate sets a clear path for 100pc zero emission sales by 2035, providing much-needed certainty for consumers and industry," said Richard Hebditch, director of Transport & Environment UK. "The question is no longer whether the internal combustion engine's days are numbered, but how fast we get there."
The proposals are now in public consultation until 24 May.
