The Zero Emissions Vehicle Mandate – What Impact Could This Have for Fleets?
As the Government continues to implement its Net Zero Strategy to tackle climate change, there are numerous Government schemes being set up to assist businesses in reaching the UK goal of net zero by 2050. In addition to the numerous low emission zones already in place across the UK, the Government has published its latest consultation on the Zero Emission Vehicle (ZEV) mandate, which aims to support the shift to electric vehicles.
What Is the Zero Emissions Vehicle Mandate?
The ZEV mandate will require manufacturers to sell a certain proportion of electric vehicles each year up to 2035. It is being launched as part of the Government’s Net Zero Strategy and aims to prepare car and van manufacturers for the ban on new petrol and diesel van and car sales by 2030 and Hybrid electric vehicles by 2035.
The ZEV mandate proposes that every zero-emission sale should be converted into a certificate, and at the end of the year each manufacturer will be required to hold a certain number of ZEV certificates based on the total number of vehicles sold. Any excess non-ZEV sales must be covered by purchasing allowances from other manufacturers, by using allowances from past or future trading periods (banking or borrowing) during the initial years of the policy or by offsetting with credits. Non-ZEVs will be regulated through CO2 emission targets.
The Proposed Minimum ZEV Target Trajectory for Vans
In the latest consultation on the ZEV mandate design in April 2023, the proposed minimum ZEV target trajectory for new vans sold begins at 10% in 2024, climbing to 70% in 2030 and 100% in 2035.
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