The government is preparing to relax the Zero Emission Vehicle (ZEV) Mandate, a move that would allow petrol and diesel cars to remain on sale for longer than originally planned. According to The Times, ministers are considering changes that could mean half of all new cars sold at the end of the decade will still have internal combustion engines, a significant retreat from the current target that would restrict fossil fuel vehicles to just 20 per cent of new sales by 2030.
Affordability concerns drive policy shift
Energy secretary Miatta Fahnbulleh has indicated that the transition to electric vehicles must be balanced with the need to keep costs down for consumers. Speaking about the proposed changes, she said: "We need to keep momentum [towards clean power]. But we’ve also got to do it in a way that works for people. And that is about affordability."
Fahnbulleh emphasised that her primary responsibility is to ensure the transition does not place an undue financial burden on households. "In the end, my job is to do the transition in a way that works for people’s pockets," she explained. "Candidly, my job is to keep people with us. So 81 per cent of the public believe that renewables are a good thing and support it. I need to keep that number. And the way I do that is to say to people, we are doing the hard trade-offs to make sure that we are doing this transition in a way that still delivers affordability."
Industry reaction: demand vs. regulation
The proposed softening of the mandate has drawn mixed reactions from industry figures. Tanya Sinclair, chief executive of Electric Vehicles UK, criticised the move, arguing that manufacturers are not doing enough to stimulate demand. "Car manufacturers are among the biggest and most sophisticated marketers in the world," she said. "Claims that demand simply isn’t there ring hollow. They know better than most that demand doesn’t just appear, it is built. If everyone involved spent half as much time building consumer demand as they do arguing over percentages, we would be much closer to a fully electric future."
Mike Hawes, president of the Society of Motor Manufacturers and Traders (SMMT), has been a vocal advocate for reviewing the mandate, calling for "urgent reform". He stated: "The EV mandate debate needs facts, not anti-industry fiction. The reality is that not a single manufacturer – UK-based or importing, in credit or not – believes the regulated 2030 target of 80% is on track, let alone the 95% the Committee for Climate Change suggests is achievable for both cars and vans."
Current market data and challenges
Hawes highlighted the current state of the market, noting that despite significant incentives, battery electric vehicle (BEV) sales remain below expectations. "With just three and a half years to go, and despite unprecedented incentives, BEV share is 25.3% for cars and not even half that for vans," he said. "For cars, the biggest challenge remains private retail buyers, with four in five still choosing non-BEV models. Salary sacrifice helps but remains a minority benefit. Urgent reform of the mandate is therefore needed, alongside renewed commitment from all stakeholders to build consumer confidence."
Expert opinion: public support for renewables remains strong
Jess Ralston, head of energy at the Energy and Climate Intelligence Unit (ECIU), a think tank, expressed support for Fahnbulleh’s emphasis on affordability. She said the minister’s change of focus "makes sense" and that the public are not fixated on specific targets. "What people do want to see is for the country to continue moving towards renewables because they know in the long run that will bring bills down and stop us being reliant on highly unstable gas prices," Ralston explained. "I don’t think most of the public are wedded to whether it’s 100 per cent clear power by 2030 or 90 per cent or 85 per cent."
Implications for drivers and the net zero agenda
The potential relaxation of the ZEV Mandate represents a significant shift in the government’s approach to decarbonising road transport. If implemented, it would mean that by 2030, up to 50 per cent of new cars sold in England could still run on petrol or diesel, a stark contrast to the original goal of 80 per cent electric sales. This move is likely to be seen as a concession to both the automotive industry, which has struggled with EV adoption rates, and to consumers concerned about the higher upfront costs of electric vehicles.
However, environmental groups may view this as a step backwards in the fight against climate change, potentially undermining the UK’s commitment to achieving net zero emissions by 2050. The final decision on the mandate is expected to be announced later this year, following consultations with industry stakeholders and the public.
