Announced in September 2023 and in effect from this year, the Zero-Emission Vehicle mandate will change the UK’s roads and the future of our environment as we know it.
The importance of this mandate cannot be understated. For the environment, this policy will have an incredibly positive impact, significantly helping to reduce the carbon footprint created by fuel-burning vehicles. While it will take some adjusting to get there, the future is looking very green.
In this post, we aim to help you better understand the implications of the ZEV mandate, especially how they relate to your business.
What is the Zero-Emission Vehicle mandate?
The Zero-Emission Vehicle (ZEV) mandate is an initiative aiming to speed up the UK’s transition to electric vehicles and other zero-emission vehicles. It’s thought that this mandate and its targets are the world’s most ambitious framework for the electric vehicle switch.
The goal
The purpose of this mandate is to reduce the transportation sector’s greenhouse gas emissions and improve air quality. It also supports the UK’s commitment to achieving net-zero carbon emissions, with the deadline for that set for 2050.
The targets
To meet the mandate’s deadlines, increasing targets need to be reached by vehicle manufacturers for the sales of new vehicles over the next 11 years. The following are the targets for electric van sales in the UK:
- 2024: 10% of annual sales
- 2025: 16% of annual sales
- 2026: 24% of annual sales
- 2027: 34% of annual sales
- 2028: 46% of annual sales
- 2029: 58% of annual sales
- 2030: 70% of annual sales
- 2035: 100% of annual sales
While the targets and mandate don’t directly apply to dealerships like ours, they will still affect businesses in a cascade effect. It’s important to note that if the production of electric vehicles increases, so will dealerships’ purchases of them. This means a lot more electric vehicles for sale and far fewer petrol and diesel vehicles available to the public over the next decade.
The timeline
Beyond the targets, there is a timeline for how the transition to electric vehicles will unfold over the next 11 years.
- 2024: The mandate is now enforced, and manufacturers must ensure that 22% of their new vehicle sales are electric.
- 2025-2030: The sales proportion targets will increase gradually over these six years.
- 2030: The sale of new cars and vans that use petrol or diesel will be banned. 80% of new cars and 70% of new vans sold by manufacturers must be electric, with the other 20%-30% being hybrid and other low-emission vehicles. It’s key to note that hybrid vehicles can only run on electricity for short distances.
- 2035: All new hybrid vehicles that aren’t capable of zero emissions will be banned. 100% of new car and van sales by automakers must be zero-emission vehicles.
Government incentives and support
There is no denying that this huge change in just eleven years will take some adjustment. Because of this, the government is offering support and incentives to help manufacturers and the public transition to electric vehicles.
Financial and tax incentives
The aim of these incentives is to encourage consumers to switch to electric vehicles.
Plug-in car grant
This grant is for up to £1,500 off the price of an electric car under £32,500.
Plug-in van grant
For small vans, this grant is for a discount of up to £2,500. For large vans, this grant is for a discount of up to £5,000. You can find a list of the regulations and vehicles eligible for these grants on the gov.uk website.
Homeplace chargepoint grant
This grant is for up to £350 off chargepoint installation fees for those living in flats or rental properties without dedicated off-street parking.
Electric Vehicle Homecharge Scheme (EVHS)
This scheme has been in place since 2014. Through it, you can receive a discount of up to £350 for the installation of a charging point for off-street parking.
Tax relief
For electric vehicle owners, there are various tax incentives to reduce the overall cost of owning and operating the vehicle. These include lower vehicle excise duty (road tax) as well as advantageous benefit-in-kind (BIK) rates for electric company vehicles.
Infrastructure development
The government has plans to enhance the infrastructure to enable easier charging of electric vehicles.
Public charging
Price sector investment and government funding will go towards expanding the public charging network, with a target to install 300,000 charge points by 2030.
Ultra-rapid charging points
This fund is a £70 million pilot program to install ultra-rapid charging points. These will be placed in motorway service areas, allowing for easier long-distance travel in electric vehicles.
Local Electric Vehicle Infrastructure (LEVI) fund
The installation of tens of thousands of new chargers will be supported by this £381 million fund. This is to ensure that electric vehicle infrastructure is accessible across the UK.
Support for consumers
Support will be offered to consumers and fleet operators, including:
Education programmes
These awareness initiatives will inform consumers of the benefits of electric vehicles. It will also teach them about the available incentives in an effort to drive demand.
Incentives for fleet operators
Large commercial fleet operators who commit to a future of zero-emissions will be supported by the government. The support will come through a collaboration, providing tailored help and incentives to assist with their fleet transition, including financial incentives and specialised infrastructure.
Manufacturing support
The government is investing in new technologies and facilities to support the production of zero-emission vehicles.
Gigafactories and EV manufacturing investments
Significant investments in electric vehicle manufacturing have been supported by the government. This includes the upgrade of existing manufacturing plants and the establishment of gigafactories for batteries.
Flexibilities for manufacturers
Credit trading and banking compliance, which allow manufacturers to manage their transition more effectively, is included in the ZEV mandate. Flexibility such as this helps manufacturers adapt while meeting the targets.
Electric vehicles at Norfolk Truck & Van
The Zero-Emission Vehicle mandate is set to transform our transportation sector, resulting in a healthier, happier environment. We are reaching a point of no return in the climate crisis, and these actions are created to help mitigate climate change for future generations and the planet.
This mandate is incredibly important, but complex. With the above government support and investments, the next eleven years will see a lot of change in infrastructure and awareness of electric vans, cars, and other road vehicles.
We will be doing our part by selling electric vans to our customers and keeping an eye out for the exciting new models that Renault and Isuzu are releasing. Currently, we offer the Renault Master and Renault Trafic electric vehicles, which are perfect to support your business operations or add to your fleet.
To learn more about these fantastic electric vehicles and for advice and information on the ZEV mandate, don’t hesitate to get in touch with our knowledgeable team. With years of experience under our belts, we can assist you in finding the right electric van for your business.
For our Norwich Van centre, call 01603 253 999. For the Norfolk depot, call 01603 253 300. For the Suffolk depot, call 01473 834 200. For the London depot, call 0208 804 1266.