EV100 members call to protect UK's ZEV Mandate

The world-leading legislation that’s put the UK in the fast lane of the EV transition is under threat. Some of the UKs biggest companies, members of our EV100 network, are mounting a spirited defence of the Mandate in the face of intense lobbying efforts. The Government needs to listen to them – the coming weeks are crucial. 

The ZEV Mandate requires UK carmakers to sell a greater number of electric vehicles every year – until no more new petrol and diesel cars can be sold by 2035, at the latest. It is a bold, highly effective tool, which Climate Group played a key role in bringing about, when we united leading companies in a call for a strict phase-out date.  

Labour confirmed its commitment to the legislation and its manifesto pledged to re-instate the 2030 cut-off date, after it was moved to 2035 by then-PM Rishi Sunak last year.  

But the Mandate has come under fierce attack again – from those it aims to push forward in their transition.  

For weeks now, a small number of carmakers has launched a concerted, last-minute lobbying effort against the Mandate. They’re blaming it for a wide range of related and unrelated problems – even though the industry is firmly on track of reaching this year’s targets, and every indication is that global EV sales are only going to go one way: up.  

Things came to a head when carmaker Nissan complained to the Financial Times that EV targets were pushing the car industry to “crisis point”. As the Times started speculating about a possible relaxation of the rules, our EV100 members stood ready to tell the other side of the story.  

In a Guardian article, businesses including EV100 members BT Openreach, SSE and OVO, made it clear that they consider the tool vital to creating the UK’s zero-emission transport future – and, in fact, depend on the legislation to reach their own fleet electrification targets. 

Clive Selley, chief executive of Openreach, said the government needs to “cut through the noise and listen to businesses who are already investing large sums in the switch” when considering the future of the Mandate. 

“Don’t waver on the ZEV Mandate,” he said. 

“We need certainty from the Government to enable us to continue our transition and are wholly backing the ZEV Mandate, as a world-leading piece of legislation, to help us meet our net zero goals.” 

Companies across the UK have embarked on ambitious EV transition knowing that their leadership sits within a wider framework of support. The ZEV Mandate is a key part of this: it guarantees supply and sets a clear pathway for all actors, making confident investments in new technology possible. Any change to it unsettles the entire system.   

Our Head of Transport, Dominic Phinn, told the Guardian: “There is absolutely no justification for tinkering with the world-leading tool that has put the UK in the fast lane of the global EV transition. Carmakers face a simple choice: scale up EV manufacture now and seize a huge economic opportunity – or be left behind by those who do.” 

The story set the agenda for the week.  

On Tuesday, pension funds and investors, including Macquarie, M&G, Aviva and Schroders, added their voice to the debate. “Chopping and changing” EV sales targets could risk investment in the UK and “damage investment confidence”, fund managers argued. 

By Wednesday, the charging industry had rallied. “Everyone is agreed that uncertainty is the enemy of the EV transition and threatens investment on all sides,” Vicky Read, CEO of ChargeUK, said. 

“The ZEV Mandate provides certainty for both UK drivers and the automotive industry as we strive to reach net zero. Industry and Government need to come together to make the switch to electric vehicles an easier choice; one that is better for them and the planet.”

The NGO community also came together quickly: Climate Group supported a letter to the transport secretary, led by our partners Transport & Environment. We argued that the legislation is one of the country’s single biggest carbon saving measures, which has boosted EV supply in the UK ahead of Europe and helped bring down prices for consumers.  

There are enough flexibilities built into the system for the industry to reach its targets, and contrary to the car industry’s stories, demand in the UK is strong and growing: EVs have made up over 20% of new sales for three consecutive months. September saw a record month for EV sales volumes, and November and December are likely to deliver the same bumper sales we’ve seen in previous years. 

The day the Government was due to meet with carmakers behind closed doors to discuss the ZEV Mandate, Ford landed news it was cutting 4,000 jobs in Europe, including 800 in the UK. That evening, the meeting ended without a major announcement. 

The Government, it seemed, was holding the line.  

“The ZEV Mandate has provided a clear policy framework to drive consistency of supply, infrastructure investment, and a clear direction of travel, crucial for our customers as they set their EV transition roadmap."

The peace lasted a week.  

This Wednesday, as business secretary Jonathan Reynolds prepared to address the car industry group SMMT on the Mandate, Stellantis, the owner of Vauxhall, announced it was closing its van-making plant at Luton – a huge blow to 1,100 workers, whose jobs are at risk.  

Once more, headlines were dominated by job losses, blamed explicitly on the ZEV Mandate, even though many analysts pointed instead to Stellantis’s unused factory capacity across Europe. In fact, Stellantis told investors it was “confident” it would meet the targets just two months before, according to a Guardian exclusive. 

Following the SMMT meeting, The Government signalled a “fast-track consultation”, which might see the introduction of new flexibilities or a relaxation of the rules. A decision is expected in January.  

The morning after, carmakers tried to strike conciliatory notes, with Ford saying regulations could remain in place – as long as more was being done to boost consumer demand, for instance through new incentives. "We kind of need to make it work," a company representative told the Today programme.   

As said: the next few weeks are crucial.  

“As the UK Government launches its ZEV Mandate consultation,” says Dominic Phinn, “policymakers need to ask themselves a simple question: are they prepared to risk the incredible progress the UK has made in moving towards a cleaner, more sustainable transport system?” 

“It’s vital the Government continues to maintain a supportive policy environment with a strong ZEV Mandate at its core. That will give us the confidence in the marketplace to invest, deliver the backbone of decarbonised transport across the UK and Ireland, and enable the transition from internal combustion engine (ICE) cars for fleets and members of the public alike."

Climate Group will continue to bring together companies from across sectors in support of the ZEV Mandate.

As Climate Group, we are asking the Government: 

1. To protect the ZEV Mandate at all costs – so the legislation can do its vital job of setting clear path and keeping all actors on track, while guaranteeing both the numbers and the variety of models needed by companies that have invested in the EV transition. 
2. Create significant new incentives for private buyers to further encourage the mass-uptake of EVs, while continuing critical support for companies, such as subsidies on e-vans. 
3. Initiate a bold national mission around EV infrastructure, bringing together the energy, charging, automotive, and public sector to advance the UK’s charging and grid infrastructure with the urgency required, sending the clearest possible signal that the EV transition is happening now.

“As a big fleet operator, we’re facing into the challenge of tackling the barriers to adoption, including by installing thousands of charging points in our engineers’ homes. We’re keen that the Government continues to incentivise adoption and that the industry produces as many EVs as possible, particularly in the UK. Collaboration’s key and having targets is helpful.”

Update, 5 December 2024: A quarter of all new cars sold in November were electric, according to the latest figures from think tank New AutoMotive. Their latest report also found EV registrations grew by over 50% on November 2023. The ZEV Mandate is clearly working, newspapers including The Times reported. 

Dominic Phinn said: "These stats underline what companies across sectors have been saying over the past weeks and months: the UK is moving into the direction of EVs – and it needs to keep going. Businesses are switching their car fleets at scale, and that will bleed into the second-hand market. 

"Leading companies are driving us into a zero-emission transport future and the Government needs to use that momentum to drive industrial growth and the uptake amongst consumers. That means protecting the ZEV Mandate at all costs, creating new incentives for consumers, and making the UK’s charging and grid infrastructure one of its core missions.”