As the Government continues to implement its Net Zero Strategy to tackle climate change, there are numerous Government schemes being set up to assist businesses in reaching the UK goal of net zero by 2050. In addition to the numerous low emission zones already in place across the UK, the Government has published the critical details around the Zero Emission Vehicle (ZEV) mandate, which aims to support the shift to electric vehicles.
What Is the Zero Emissions Vehicle Mandate?
The ZEV mandate will require manufacturers to sell a certain proportion of electric vehicles each year up to 2035. It is being launched as part of the Government’s Net Zero Strategy and aims to prepare car and van manufacturers for the ban on new petrol, diesel and hybrid van and car sales by 2035.
The ZEV mandate proposes that every zero-emission sale should be converted into a certificate, and at the end of the year each manufacturer will be required to hold a certain number of ZEV certificates based on the total number of vehicles sold. Any excess non-ZEV sales must be covered by purchasing allowances from other manufacturers, by using allowances from past or future trading periods (banking or borrowing) during the initial years of the policy or by offsetting with credits. Non-ZEVs will be regulated through CO2 emission targets.
If a company misses the target set, they will have to pay the government £9,000 per non compliant van in 2024, which will then rise to £18,000 for the rest of the regulation’s timeframe.
The ZEV target trajectory for vans
Starting in 2024, the minimum ZEV target for new vans sold will be 10%, climbing to 70% in 2030. The targets for years’ 2031-2035 will be set out in future legislation later in the decade.
Annual targets for % of zero-emission van sales
What Impact Will This Have on the LCV Industry?
The plan to introduce the ZEV mandate as early as 2024 will have a huge impact for businesses who use vans. The ZEV mandate will increase the production of zero emission vehicles, and with the availability of ICE vans still relatively limited due to supply chain issues, the ZEV mandate will give both manufacturers and fleets the clarity and confidence needed when planning its decarbonisation journey and transition towards electric vans.
In addition to this, it is expected that EV charging companies will have more confidence in scaling up efforts on the roll out of charging points, as they will be able to accurately forecast the number of EVs expected on the roads each year. This should lead to a more robust EV charging infrastructure being in place and help overcome the fears around the current lack of EV chargers, which are preventing a lot of fleets from transitioning to EVs.
How Can Dawsongroup vans Help You Prepare for the ZEV Mandate?
Where the ZEV mandate will require manufacturers to sell a certain proportion of electric vehicles, this will result in lower availability of ICE vehicles, meaning many fleets will have to start adopting EVs sooner than planned, in order to keep up with business demands.
Dawsongroup vans can help your business adopt a fleet of electric vans in the most risk-free and cost-effective way. Our wide range of van rental solutions will enable your business to adopt electric vans in a way that meets all your current requirements, whilst also providing you with the scalability and flexibility to adapt for any future developments. In addition to this, our unrivalled service levels will ensure minimum downtime for your operations, ensuring your vans are earning you money every single day.
We also have a dedicated team of net zero advisors, Team Target Zero, who are on hand to provide a consultative service about everything to do with transitioning to net zero. The primary aim of Team Target Zero is support all aspects of the transition and discuss which options are most suitable for you.
Get in touch with our LCV experts today to find out more about how we can help you make the transition to zero emission vans.