The UK’s planned ban on the sale of petrol and diesel internal combustion engine (ICE) cars by 2030 was replaced in 2024 by the Zero-Emission Vehicle Mandate (ZEV). This CO2 regulatory instrument (its full name is the Vehicle Emissions Trading Scheme Order 2023) requires a ramp-up of ZEV sales to reach 80% of all new car sales by 2030. Despite the UK’s charging infrastructure rollout and the decreasing cost of battery electric vehicles (BEVs), sales of BEVs in the UK barely increased between 2022 and halfway through 2024. Because of this, there have been calls for additional policy and government actions to accelerate BEV uptake to meet the ZEV mandate, and to ensure low-income groups can also access BE or ZE vehicles. This has culminated in a public consultation on specific areas of the ZEV Mandate.
Recent consumer analysis performed by ERM shows many of the concerns around electric vehicle adoption could be addressed and overcome with targeted policy improvements, including:
- A feebate, with a fee for the most polluting and expensive vehicles that is directed to a rebate for the smallest electric vehicles sought by second-hand buyers.
- A social leasing scheme to provide subsidies to low-income, car-dependent households to trade their ICE vehicle for a new BEV at a guaranteed monthly lease price.
- An information campaign to correct perceived barriers to BEV adoption
Barriers (real and perceived) to electric vehicle adoption could be significantly reduced at minimal cost to the UK Government, allowing the nation to move closer to its 2030 zero-emissions goals. Learn more in ERM’s final report and analysis of the 2030 ZEV Mandate Plan.
