Government launches Zero Emission Vehicle Mandate review

Currently it requires all vehicle manufacturers to sell a larger proportion of EVs each year:

• 80% of new car sales must be zero emission vehicles by 2030
• 100% of all new car and van sales must be zero emission vehicles by 2035

However, the details that underpinned the mandate changed a couple of times before it became official policy. The current review has suggested options to either retain current targets or to reduce the 2030 target but keep the 2035 target.

Why is the Government reviewing the ZEV mandate?

The Government has identified a number of key issues that have prompted the review. It highlighted that changes in global policies for EVs as well as rising energy prices have increased uncertainty and costs for UK manufacturing. It’s also highlighted that ZEV demand has grown more slowly than it anticipated. DfT analysis has forecast that ZEV sales in 2030 are below the 80% target for cars and 70% target for vans. The Government has therefore launched the review as it wants the mandate to be fit for purpose, achievable and represents experiences from across the industry.

Options under consideration

The Government is reviewing the timelines for targets for both vans and cars. Under all options, the headline target, for all new cars and vans to be fully zero emission by 2035, will remain. However, it’s consulting on the trajectory to get there and is reviewing the 2030 target, with the following options:

For cars

• Maintaining the current 80% headline target by 2030
• Reducing 2030 targets to either 70%, 60% or 50% whilst maintaining the target of 100% by 2035.
• Maintaining current targets with extended flexibilities. This option keeps current targets but would extend flexibilities for manufacturers. At the moment, manufacturers earn credits for EVs sold and those that have exceeded targets get flexibilities such as banking or trading credits with those below target. Currently these flexibilities to support manufacturers are due to end in 2029 however, this option extends them until 2034.

For vans

• Maintaining the current 70% headline target by 2030 (100% by 2035)
• Reducing 2030 targets to either 60%, 50% or 40% whilst maintaining the target of 100% by 2035.
• Maintaining current targets, with extended flexibilities (100% by 2035). As with the option for cars, this extends the cut off date for flexibilities available to manufacturers from 2029 to 2034.

The Government is asking for feedback on these options for the 2030 target but also on the criteria for flexibilities.

As well as the targets timelines, the Government is also looking for feedback on a range of alternative policy options that address the strong growth in hybrid vehicles. The Government has highlighted this as a concern as an increase in hybrid vehicles could erode carbon savings made by EVs. It’s suggested three options for industry to consider including changes to make emissions calculations more accurate.

Next steps and a future market

The Government has highlighted that the market needs strong demand to grow and emphasised its existing measures to support EV take up. Car owners including fleets have played and continue to play an important role in transport decarbonisation.

However, the ZEV mandate has also played a key role. The mandate legislates what manufacturers produce which has helped to improve availability of electric cars and vans for fleets. It has encouraged the production of a range of vehicles including more affordable models that support different fleet needs. Currently 40 models of zero emission vans are now on the market in the UK. Other government incentives have also played a part in this with Emission Van Grant supporting almost 115,000 zero emission orders since 2012. Joined up policy and incentives will be key for the continued growth of the market, alongside growing demand from drivers opting for EVs.

The review is open to responses until 23 October 2026 and the DfT has emphasised that it’ll undertake extensive engagement with stakeholders to discuss the issues in this consultation before forming an outcome.

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