Changes to Zero Emission Vehicle Mandate announced

The government has announced changes to the Zero Emission Vehicle Mandate, which it says will make it easier for industry to meet the transition targets.

Part of this includes a confirmation that the 2030 phase-out date for new petrol and diesel car sales will be reinstated, but with  hybrid cars allowed to be sold until 2035.

The government says the changes announced will strengthen its commitment to switch to electric vehicles while also introducing practical reforms to support the industry meet this target.

There is an existing flexibility for manufacturers to create ‘credits’ in the scheme by reducing emissions from their non-ZEV fleet compared to a 2021 baseline. This currently expires in 2026 but the changes to the mandate include extending this to 2029. The government says this will give "significant additional flexibility to reward CO2 savings from hybrids". Caps will be included to ensure credibility.

There will be a new flexibility by allowing for van to car transfer, meaning one car credit will be exchanged for 0.4 van credits, and one van credit will be exchanged for 2.0 car credits.

Vans with an internal combustion engine (ICE) will also be allowed to be sold until 2035, alongside full hybrids and plug-in hybrid vans.

The new measures will also exempt small and micro-volume manufactures, like McLaren and Aston Martin. These companies will be required to meet a "nominal" CO2 reduction across their fleets post-2030 which will be agreed with them.

Transport secretary, Heidi Alexander, said: “We will always back British business. In the face of global economic challenges and stifled by a lack of certainty and direction for too long, our automotive industry deserves clarity, ambition, and leadership. That is exactly what we are delivering today.

“Our ambitious package of strengthening reforms will protect and create jobs — making the UK a global automotive leader in the switch to EVs — all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030."