The “ZEV mandate” to increase EV sales is simple… ish
To boost sales of electric vehicles (EVs), the government has a plan. Called the zero-emission vehicle mandate, the plan sets minimum sales targets and penalties for automakers if they don’t meet them.
From 2024, car manufacturers will have to sell 22% fully electric vehicles. By 2028, this figure would increase to 52% and then 80% by 2030, just in time for the EU’s ban on internal combustion engine (ICE) cars. The government then hopes that by 2035 100% of new cars sold will be purely electric.
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Anyway, this is the preferred approach for the more agile titled ZEV mandate. The government has been in consultation, so this proposal is not yet legally binding. However, once in the game, carmakers could be stung by £15,000 per unit under the missed target. Ouch.
The way the government is incentivizing car manufacturers is interesting. Basically they will earn credits, and the powers that be suggest that those credits are transferable. So if you have excessive credits with a brand with a very popular electric vehicle line that sells like hotcakes, you can switch those credits to another brand that isn’t so earth-friendly, to avoid fines.
To qualify as the “right kind of electric car,” the mandate states that the ZEV must emit zero carbon dioxide and no other greenhouse gas (GHG), have a minimum range of 120 miles ( according to WLTP standards) and meet standard warranty requirements to provide a “predictable consumer experience”.
Mike Hawes, head of the Society of Motor and Manufacturers and Traders (SMMT) explains why the proposals do not go far enough. “While the proposals correctly reflect the diversity of the sector, the late publication and lack of regulatory certainty make product planning almost impossible, and the lack of clarity about which technologies will be allowed beyond 2030 undermines attempts to ensure the investment”.
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Hawes also cites the UK’s charging infrastructure issues as a barrier to EV adoption. “Ultimately, for this mandate to be successful, infrastructure providers must convert pledges into investment and catch up with vehicle manufacturers’ commitments.”
There is also no mention of what this means for e-fuels, although the consultation has a caveat that the mandate can be adapted, based on changes in market conditions and technology, so there is still some flexibility.
Tim Slatter, chairman of Ford Britain, echoes Hawes’ sentiments. “Ford is on an accelerated path to an all-electric vehicle portfolio and carbon neutrality by 2035, and fully supports the government’s ambition for a zero-emissions future.
“The ZEV mandate is a crucial piece of the electrification puzzle that provides a vital indicator of charging infrastructure needs in the coming years. Our customers know that the biggest barrier to electric vehicle adoption remains being the availability and ease of loading.
“The ZEV mandate gives clear direction and should provide the confidence for infrastructure investors to commit and enable the future of electric vehicles on UK roads. With new and higher targets for van customers, it is crucial that the government’s Plug-in Van Grant is retained in the early years to support businesses making the switch.”
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