ZEV Mandate Updates: What the Changes Mean for Van Users
Following a consultation by the Department for Transport (DfT), the government has revised the zero-emission vehicle (ZEV) mandate, with significant implications for the sale of new vans. Under the updated mandate petrol, diesel, full hybrid, and plug-in hybrid vans can now be sold until 2035.
The initial ZEV mandate set targets for van manufacturers to ensure 10% of all new van registrations in 2024 were zero emissions, increasing to 16% in 2025. The updated mandate allows manufacturers greater flexibility in meeting targets and avoids potential fines by selling more battery-powered electric vehicles (BEVs) in later years.
Significantly, no additional technology requirements will be imposed on vans between 2030 and 2035, plus van manufacturers will only need to ensure that the overall CO2 emissions of their non-ZEV fleets are no worse than 2021 levels. Fines for manufacturers failing to meet the new targets have also been reduced.
This new flexibility allows for credit transfers between vans and cars for manufacturers producing both types of vehicles (one car credit can be exchanged for 0.4 van credits, and one van credit can be exchanged for two car credits). The existing flexibility to transfer non-ZEVs to ZEVs, based on CO2 savings has been extended until 2029.
No new incentives were announced to stimulate the new or used EV vans market.
Transport Secretary, Heidi Alexander, stated that this package of reforms aims to provide clarity, ambition, and leadership to the automotive industry, intending to protect and create jobs while meeting the commitment to phase out petrol and diesel vehicles.
Mike Hawes, Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), acknowledged that the government has listened to the industry and responded to global dynamics. While welcoming the changes, he noted that the ZEV mandate targets remain "incredibly challenging," particularly with limited consumer demand, and emphasised the need for "equally bold fiscal incentives" to encourage the switch to EVs.
In summary, the updated ZEV mandate means that fleet operators are still going to be able to buy diesel and hybrid vans through 2035 beyond the original cutoff date of 2030.
Despite the extended timeframe for non-ZEV vans which offers flexibility to fleet operators, their overarching goal should still be to implement strategies that reduce their carbon footprint such as electrification, alternative fuels, optimising routes, and promoting eco-driving which can all lead to reduced fuel costs, lower maintenance and an improved brand image. The extended deadlines should be seen as an opportunity for strategically planning towards significant emissions reductions.
To discuss how to reduce your emissions now and save fuel with your existing or new hybrid vans contact us today.