A coalition of industry groups has warned the UK Government that any move to water down legally-enforced ZEV targets could jeopardise billions of pounds in investment and threaten thousands of jobs.
The groups, which includes BEAMA, ChargeUK, REA and UKSIF, jointly urged the Government to reaffirm its commitment to existing EV sales mandates, with the current plan requiring 22% of vehicle manufacturers’ sales to be zero emission by 2024, rising to 80% by 2030 and 100% by 2035.
They argue that weakening targets would undermine investor confidence, delay the decarbonisation of road transport, and hinder the rollout of crucial charging infrastructure. Data already suggests that more than half of the UK’s 100 largest transport companies, representing around £900 billion in turnover, have either moved or plan to move investments abroad due to uncertainty and concerns over sustainability commitments.
The warning comes as the UK’s low carbon industries are spotlighted as key drivers of economic growth. The groups contend that policy changes would contradict recent Government pledges, deter private investment in charging infrastructure, and reduce consumer confidence in choosing zero emission vehicles.
Yselkla Farmer, CEO of BEAMA, noted, “We cannot underestimate the impact moving the goalposts again could have on UK investment and pace of electrification. We recently published our plans for a UK Industrial Strategy which makes a strong case for the growth opportunities stemming from this sector. A decision to back track on the ZEV mandate will be entirely counter to the UK’s longer term ambition to drive inward investment for manufacturing.”
Vicky Read, CEO of ChargeUK, added, “The ZEV Mandate is working. More and more new and used EVs are being sold as drivers embrace the switch to electric vehicles. ChargeUK members are keeping ahead of demand by rolling out the infrastructure to ensure drivers have access to the right charging solution in the right place.
“But this hasn’t happened by accident, our members have been able to put in the hard work confident the Government backed their efforts. We need ministers to reconfirm that they will stand by the current ZEV mandate or they risk fatally spooking the very investors they say they are so keen to attract to the UK.”
Trevor Hutchings, CEO of the REA, commented, “The Government will not achieve its legally binding net zero targets without decarbonising transport. Electric vehicles (EVs) are essential to this so watering down sales targets would be an own goal.
“It would also put at risk investment and jobs at the very time when we’re in a global race to secure manufacturing in these technologies. Instead, the Government should focus on encouraging further consumer uptake rather than shifting the goal posts.”
James Alexander, CEO of UKSIF, concluded, “Investors including many of the UK’s largest pension funds have made significant investments into EVs and charging infrastructure based on the ZEV mandate and the long-term confidence it gave them. Data from the National Audit Office released only days ago shows that those investments have just about put the UK on track to install sufficient charging points by 2030.
“But policy wavering risks undermining that confidence, which would be very hard to recover from. Meanwhile the lack of a long-term sector decarbonisation plan for UK transport is stalling further private investment and risks widening the gap between our emissions targets and our trajectory. Private finance is ready and waiting to finance electric vehicles and charge points, but other geographies are doing a better job of providing a transparent, consistent policy approach, and the UK risks losing out.”