Government launches new zero emission vehicle consultation

On 24 December 2024, the Department of Transport (“DfT”) published a number of documents in relation to zero emission vehicles (“ZEVs”) including:

• A consultation on the ZEV Mandate, seeking views from industry on how to deliver the 2030 phase out date for new purely petrol and diesel cars and transition to zero emission vehicles. The consultation closes on 18 February 2025.
• A consultation seeking views on proposals to reduce regulatory burdens for businesses operating zero emission vans, with a focus on roadworthiness testing and drivers’ hours rules. The consultation closes on 3 March 2025.
• The outcome of a consultation on street works access for charge point operators. The government will amend legislation to (i) allow access for EV charge point operators to street works permits and Street Manager and (ii) clarify that only permits are needed and that there is no need for any additional licences under S115E of the Highways Act 1980.
• Research and analysis on (i) commercial electric vans and fleets (adoption, smart charging and barriers), (ii) consumer awareness on electric vehicle smart charging and (iii) findings on the Electric Vehicles (Smart Charge Points) Regulations 2021 following its phased introduction in June and December 2022. 

This article sets out key points from the consultation on the ZEV Mandate.  

Recap on the ZEV Mandate

The ZEV Mandate is a regulatory framework that sets out the percentage of new cars and vans that must be zero emission each year in the United Kingdom. It was introduced on 1 January 2024 through the Vehicle Emissions Trading Schemes Order 2023 (“VETS”). The VETS was recently amended to extend to Northern Ireland from 1 January 2025. 

Under the VETS, 80% of all new cars, and 70% of all new vans are required to be zero emission from 2030. By 2035, all new cars and vans will need to be fully zero emission. Please see our previous article on the VETS for more detail.

Consultation on the ZEV Mandate 

The consultation is split into two parts. Part 1 (from UK Government only) seeks views on the treatment of new cars and vans from 2030 to 2035 that are not required to be zero emission under current ZEV Mandate targets. The government expects this segment of the market to be decreasing in proportion through to 2035, at which point all new cars and vans (including hybrids) will be required to be fully zero emission. 

Key points in Part 1 of the consultation include:

• Hybrid vehicles: Views sought on what types of hybrid vehicles should be sold between 2030 and 2035 e.g. only full hybrid and plug-in hybrid and requirements, including options such as vehicle level or a fleetwide CO₂ requirements. The existing regulatory framework out to 2030 does not currently require any improvements to CO₂ emissions of new non-ZEVs but instead requires that they are maintained at 2021 levels.
• Vans: Views sought on whether new non-zero emission vans from 2030 should be subject to the same, or different, requirements compared to cars. For example, the government’s current view is that a fleet average CO₂ requirement would be the most appropriate form of CO₂ target to deploy given the lack of hybrid technologies available in the van sector.
• Demand measures: Views generally sought on additional measures that could be implemented to support demand for ZEVs. 

Part 1 of the consultation also looks at the role of more niche vehicle types from 2030, and proposals for how small and micro volume vehicle manufacturers will be regulated from 2030. 

Part 2 of the consultation is jointly conducted by the UK Government, Scottish Government, Welsh Government and the Department for Infrastructure (Northern Ireland). Part 2 examines the regulatory framework in detail, including views on existing flexibility as well as technical updates.

Key points in Part 2 of the consultation include:

• Van to car transfer mechanism: The ZEV Mandate currently includes flexibilities such as allowing manufacturers to ‘bank’ emissions where there is overachievement against a year’s ZEV target to use in a future year. The consultation seeks views on whether vehicle manufacturers have access to the right flexibilities to comply with targets, specifically whether overachieving on ZEV van sales can be transferred for use against ZEV car targets.
• Time limits to flexibilities: Some current flexibilities in the VETS such as the ability to ‘bank’ emissions as mentioned above do not have a cap or time limit but other flexibilities do, such as ‘borrowing’ which allows manufacturers to sell fewer ZEVs than the target in a given year in exchange for delivering them a year later with interest. This ‘borrowing’ flexibility is currently only available until the end of 2026. The consultation seeks views on whether the time limits on the current flexibilities in the ZEV Mandate for cars and vans is still appropriate.
• Utility factor in plug-in hybrid CO₂ emissions: Views sought on whether the VETS should be amended to account for changes in how emissions targets are calculated, specifically updates to the utility factor (“UF”) for plug-in hybrid electric vehicles. The UF represents the assumed share of driving done by these vehicles in electric mode (using the battery) compared to driving done using the internal combustion engine. Research on the UF now shows that plug-in hybrids produce more emissions than previously assumed, and the UF is therefore being updated in equivalent EU legislation.