The Department for Transport published its government response and outcome to the technical consultation on zero emission vehicle mandate policy design on 30 March 20231. The technical consultation ran from 7 April to 10 June 2022 and received 76 responses in total, three from private individuals and the remainder from organisations1.
The zero emission vehicle mandate will require an increasing percentage of a manufacturer's annual new car and van sales in the UK to be zero emission from 1 January 2024, until reaching 100% in 20351. The government restated its commitment to end the sale of all new petrol and diesel cars and vans by 2030, and for all new cars and vans to be zero emission at the tailpipe by 20351. The mandate will be implemented as a trading scheme under the Climate Change Act 20081.
On the two vehicle categories, the response confirms the car trajectory set out in the technical consultation, while the final proposed van trajectory is higher than that proposed in the technical consultation and in the Net Zero Strategy and Transport Decarbonisation Plan1. The document sets out the following design decisions:
| Measure | Government response |
|---|---|
| Banking of ZEV allowances | Allowed, subject to limits and restrictions1 |
| Borrowing of ZEV allowances | Allowed between 2024 and 2026, subject to caps and with interest payable on the deficit1 |
| Small volume manufacturers | Derogations for those selling less than 2,500 cars or vans per annum1 |
| Non-ZEV CO2 baseline | Each manufacturer's specific, non-weighted average CO2 emissions from 20211 |
The response states that all debts from borrowing must be repaid by 2027, and that manufacturers selling less than 2,500 cars or vans per annum will not be required to meet any ZEV targets from 2024 to 20291. Exceeding the minimum ZEV requirements can be used to offset non-compliance with the non-ZEV CO2 regulation, and during 2024 to 2026 overachievement against the non-ZEV CO2 targets can offset non-compliance with the ZEV mandate, though this will be capped1. The government said it has already spent £2 billion to support the transition to zero emission vehicles1.
"For new vans, the final proposed uptake trajectory is higher than that proposed in the technical consultation and the NZS/TDP"
Why it matters for households
The mandate governs what new cars and vans can be sold in the UK, so it shapes the choice and price of vehicles reaching the market over the coming decade. For a household, the practical effect is on the availability of new petrol and diesel models, which the government has committed to ending for new sales by 2030, and on the supply of zero emission alternatives1. The flexibilities confirmed here, banking and borrowing of allowances, affect how manufacturers can comply across years rather than in a single year, which in turn influences how quickly models are brought to market. The response also notes that a substantial share of respondents wanted charging infrastructure and other measures considered alongside the trajectories, and that some manufacturers viewed 2024 as too soon to start annual targets1. The document does not set out household-level costs, grants or charging requirements; those have not been reported here.
What happens next
A third and final consultation on the design of the ZEV mandate was published alongside this written response1. The response says the government looks forward to engaging with stakeholders on these final proposals1. The consultation process for the mandate therefore continues beyond this document.