UK Government Delays Zero Emission Vehicle (ZEV) mandate

In response to the US’s 10% tariffs on UK goods, the UK Government has postponed its Zero Emission Vehicle (ZEV) mandate from 2030 to 2035.  

The government argued that extending the ZEV deadline would provide more flexibility for manufacturers, allowing for higher vehicle sales in the years when demand is expected to increase. To further support the electric vehicle (EV) transition, the government will continue its tax incentives and invest in expanding EV charging infrastructure. 

The government outlined the major changes to the ZEV mandate as: 

• Maintaining the existing phase-out trajectories for cars and vans 
• Extending the current ability to borrow in 2024-26 
• Extending the current ability to transfer non-ZEVs to ZEVs from 2024-26, out to 2029, giving significant additional flexibility to reward CO2 savings from hybrids. Caps will be included to ensure credibility 
• Introducing a new flexibility by allowing for van to car transfer, i.e. 1 car credit will be exchanged for 0.4 van credits, and 1 van credit will be exchanged for 2.0 car credits