Weakening the UK’s zero-emission vehicle (ZEV) mandate targets would threaten “billions of pounds” of investments, trade bodies warn, calling on the government to “urgently recommit” to existing EV sales targets.

In a joint statement, trade associations ChargeUK, the Association of Renewable Energy and Clean Technology (REA), the UK Sustainable Investment and Finance Association (UKSIF) and BEAMA, urged the government not to cave to “short-sighted demands to water down” current ZEV targets. 

“A swift, decisive and public confirmation by government that EV sales targets will remain unchanged is needed for private investors to fund rapid rollout of charging infrastructure, and to reassure consumers that their next vehicle should be zero emission,” the statement says.

The new call comes after the government announced a consultation on the mandate, which business secretary Jonathan Reynolds said would focus on finding ways to help the auto industry achieve the targets. This would include discussing the “flexibilities” in the mandate and finding “practical solutions that are necessary.”

Other similar statements have been issued recently in parallel to intensifying lobbying from the automotive industry.  

The ZEV mandate requires British carmakers to sell a minimum of 22% ZEVs in 2024, 80% in 2030, and 100% in 2035. Automakers that don’t meet the targets will face a fine of £15,000 per non-compliant vehicle sold. The auto industry estimates ZEV uptake, measured exclusively on battery electric vehicle sales, to reach 18.7% this year.

“Anything that takes away even a degree of EV policy certainty will be bad for investment, and potentially threaten global inflows – especially those from the US given Trump’s threats ‘to gut’ the IRA [Inflation Reduction Act],” Quentin Willson, founder of FairCharge, tells Kallanish. “This is a moment in time to show the global EV sector that the UK is one of the safest places for investment because of its successful ZEV mandate and EV policies.”

Any changes to the mandate would put “thousands of jobs” at risk, the statement adds. Any reduction in investments stemming from weakened ZEV targets would also lead to a slowdown in charging infrastructure deployment, the trade bodies argue.

Andy Palmer, founder of Palmer Energy, warns that any “dilution” of the mandate could have a “negative effect” on the energy transition as a whole, and further “hurt” the auto sector. Yet, he also acknowledges that short-term help might be necessary to enable “laggard OEMs to catch up.”

“Any more uncertainties on the move to an electrified future is just nonsensical,” adds Ben Kilbey, spokesperson for new trade body Electric Vehicles UK (EVUK). “The ZEV mandate is bringing down the prices of EVs and exposing those who have not planned properly. The government must not bow down to pressure.”