Sir Keir Starmer will water down the UK’s electric vehicle sales targets, delivering a significant blow to Labour Party energy secretary Ed Miliband’s net-zero agenda. The prime minister is understood to have overruled Miliband following pressure from the industry, the Unite union, and business secretary Peter Kyle.
Changes to the ZEV Mandate
An announcement outlining the changes is expected in the coming weeks, which will slow the pace at which the UK must switch to electric cars. The zero emission vehicle (ZEV) mandate’s requirement that 80 per cent of new car sales are all-electric models by 2030 will be reduced to 50 per cent.
Sharon Graham, the general secretary of Unite, said the “targets must be radically reduced”, warning that if the government fails to act, it “will be responsible for the decimation of the automotive industry”.
Miliband's Stance
Mr Miliband has argued that it was “very important” that the government strengthened its “commitment to our world leading EV transition plan”. However, his position appears to have been overruled by the prime minister.
Investor Concerns
James Alexander, chief executive of the UK Sustainable Investment and Finance Association (UKSIF), said: “Investors in the UK have been absolutely clear that the Zero Emission Vehicle (ZEV) mandate is vital for driving investment into our charging infrastructure. This framework has given the market confidence to commit vast sums of private capital to building out these networks across the country. Any attempt to water down these targets could send warning signals to these investors about the government’s long-term commitment to electrifying our transport network. This could threaten future financing for charging infrastructure, at a time when more and more consumers are seeking to switch to electric vehicles.”
Current EV Sales Data
Fresh data from the Society of Motor Manufacturers and Traders (SMMT) shows that electric car sales had one of the best-selling months, with almost 44,000 new models rolling off forecourts. While this represents a 34.2 per cent spike in year-on-year sales, the market share of EVs stands at 27.3 per cent, well below the required 33 per cent target by the end of the year.
