The UK government is considering adjustments to its zero-emission vehicle (ZEV) mandate, a policy that requires car manufacturers to meet escalating annual sales targets for electric vehicles (EVs) or face financial penalties.
This potential shift in policy comes after significant lobbying from major automakers, including JLR, Nissan, and Stellantis, who have voiced concerns about the mandate’s impact on their operations. Nissan, in particular, reportedly warned that the existing targets posed a threat to its manufacturing plant in Sunderland, prompting the government’s review.
Jonathan Reynolds, the UK’s Shadow Business Secretary, told The Times that a “substantial change of policy” has already been agreed upon. “We will do everything we can to make sure Nissan has that secure long-term future in the UK, making sure the business and regulatory environment reflects that,” he stated.
The current ZEV mandate outlines a requirement for 80% of annual car sales to be electric by 2030. The proposed changes, supported by Energy Secretary Ed Miliband, are intended to balance the government’s environmental objectives with the needs of the automotive industry. This policy change comes at a time when Miliband’s green agenda has also faced some setbacks, like Chancellor Rachel Reeves’ endorsement of a third runway at Heathrow.
“The whole government is absolutely of the view that you will not get to the progress around net zero and the energy transition that we want to see by closing down British jobs and British industry,” Reynolds explained.
While precise details of the revised ZEV mandate remain undisclosed, Reynolds assured Nissan CEO Makoto Uchida that “Nothing is off the table.” Potential modifications could include “flexibilities,” such as allowing companies that don’t meet their EV sales targets to earn “credits” or borrow from future years by offsetting emissions from the conventional fuel-burning vehicles they sell.
Reynolds emphasized the government’s dual approach. “For us it’s about being ambitious as to the destination [towards zero emissions] but making sure we’re working with business … to deliver on that ambitious end point,” he said. “We’ve shown a level of pragmatism on that which is essential, and it’s absolutely what Nissan wanted to see.”
The government’s willingness to reconsider the ZEV mandate reflects the challenging landscape faced by global automakers, who are now contending with intense competition from Chinese manufacturers. The ZEV mandate aims to decarbonize transport but the government has signalled it is willing to provide some easing on quotas to support car manufacturing in the UK.
