The zero emission vehicle (ZEV) mandate begins on 1 January 2024, requiring an increasing percentage of a manufacturer's annual new car and van sales in the UK to be zero emission, rising until it reaches 100% in 20351. The Department for Transport set out the final design in its response to a technical consultation, published on 30 March 20231.
The government's stated aims are 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 2008, and will be accompanied by a CO2-based regulatory framework for the new non-ZEV fleet1. Each manufacturer's specific, non-weighted average CO2 emissions from 2021 will be the baseline for regulating the non-ZEV portion of its fleet1.
The consultation ran from 7 April to 10 June 2022 and received 76 responses in total, three from private individuals and the remainder from organisations1. Engagement included six stakeholder workshops for vehicle manufacturers, energy and charge point operators and environmental non-governmental organisations1. For new cars, the uptake trajectory set out in the technical consultation was confirmed; for new vans, the final proposed trajectory is higher than that proposed in the technical consultation and in the Net Zero Strategy and Transport Decarbonisation Plan1.
Flexibilities form part of the design. Banking of ZEV allowances will be allowed, subject to limits and restrictions, and borrowing will be allowed between 2024 and 2026, subject to caps on the amount borrowed and with interest payable on the deficit1. Manufacturers selling less than 2,500 cars or vans per annum, described as small volume manufacturers, will not be required to meet any ZEV targets from 2024 to 20291. The government states it has already spent £2 billion to support the transition to zero emission vehicles1.
"From 1 January 2024, ZEV targets will require an increasing percentage of a manufacturer's annual new car and van sales in the UK to be zero emission until reaching 100% in 2035."
| Element | Detail |
|---|---|
| Start date | 1 January 2024 |
| End point | 100% of new car and van sales zero emission in 2035 |
| Petrol and diesel sales | End of sale of all new cars and vans by 2030 |
| Banking | Allowed, subject to limits and restrictions |
| Borrowing | Allowed 2024 to 2026, capped, with interest payable on the deficit |
| Small volume manufacturers | No ZEV targets from 2024 to 2029 below 2,500 cars or vans per annum |
Why it matters for households
The mandate acts on manufacturers rather than on buyers, so it shapes which new cars and vans reach the UK market and in what volume. For a household, the practical effect is on the choice available when replacing a vehicle, and on the pace at which zero emission models move from a niche to the mainstream of what dealers offer. The rules sit within the wider framework of carbon budgets and net zero targets, which set the legal context the government cites for the trajectory.
The flexibilities matter because they affect how strictly the annual targets bite. Banking lets a manufacturer carry over overachievement; borrowing lets it run a deficit between 2024 and 2026, with interest payable, and all debts being repaid by 20271. Small volume manufacturers are exempt from targets until 20291. How these mechanisms are used in practice has not been reported.
For a home considering a vehicle as part of its energy arrangements, the mandate does not itself change charging costs, electricity tariffs or home charging equipment. It concerns the supply of new vehicles. The government department responsible for energy policy is covered in DESNZ: the government department behind home energy policy, and the wider regulatory picture sits under regulation and policy.
What happens next
The mandate's targets begin on 1 January 2024 and increase annually until 20351. Borrowing is permitted between 2024 and 2026, with all debts to be repaid by 20271. Small volume manufacturers are not required to meet ZEV targets from 2024 to 20291. Further detail on the mandate's design and its effect on the end of petrol and diesel sales is set out in the Zero Emission Vehicle Mandate and the end of petrol and diesel sales.