Standing up for the ZEV Mandate

Members of Climate Group's EV100 network are mounting a spirited defence of the ZEV Mandate in the face of intense lobbying efforts. As the deadline for the government's fast-track consultation approaches, Climate Group recounts the story so far

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. 

Labour has confirmed its commitment to the legislation and pledged to re-instate the original 2030 cut-off date – after it was moved to 2035 by then-PM Rishi Sunak.  

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

At the end of last year, a small number of carmakers launched a concerted, last-minute lobbying effort against the Mandate. It was blamed for a wide range of related and unrelated problems – even though the industry was firmly on track of reaching the 2024 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, members of EV100 – a network of companies committed to electrifying their fleets, led by the non-profit Climate Group – 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 needed 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. 

Companies across the UK have embarked on ambitious EV transitions 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.   

“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,” said Dominic Phinn, head of transport at Climate Group. “Carmakers face a simple choice: scale up EV manufacturing now and seize a huge economic opportunity – or be left behind by those who do.” 

The story set the agenda for the week. Within days, 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. 

Calls from the industry

Next, the charging industry 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 NGO community also came together quickly. Climate Group and others signed a letter to the transport secretary, arguing 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 per cent of new sales for several consecutive months. September, November and December saw record after record. 

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. A week later, Stellantis, the owner of Vauxhall, announced plans to close 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 in Stellantis’ case many analysts pointed instead to 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 a meeting with the SMMT lobby group, the Government signalled a “fast-track consultation”, which might see the introduction of new flexibilities or a relaxation of the rules. It was launched on Christmas Eve and runs until mid-February.

Carmakers have since tried to strike more 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.   

“Policymakers need to ask themselves a simple question,” Climate Group’s Dominic Phinn said. “Are they prepared to risk the incredible progress the UK has made in moving towards a cleaner, more sustainable transport system?” 

What can be done?

Climate Group is asking the government 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. 

The group is also calling for the creation of 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. 

The Climate Group is also urging the government to 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 EV100 members are keeping up the pressure to protect the ZEV Mandate, it’s clearly working as intended: in January, Bloomberg reported the UK surpassing Germany to become Europe’s largest electric-car market.

About EV100

EV100 is a global initiative led by the international non-profit Climate Group, which brings together companies committed to making electric transport the new normal by 2030. Members are increasing demand, influencing policy, and driving mass roll-out – helping to make electric cars more rapidly affordable for everyone.