Public support grows for reforming ZEV Mandate, finds Carwow

A new study by online marketplace Carwow reveals that a majority of UK drivers believe the Zero Emission Vehicle (ZEV) mandate needs urgent reform with two-thirds (67%) of drivers believing that the government should ease EV production quotas for manufacturers.

This comes as reports in national newspapers suggest that the government may soon announce it will relax its mandatory targets.

Business secretary Jonathan Reynolds told The Times that a significant policy shift had been reached. “We are committed to ensuring Nissan’s long-term future in the UK, ensuring that both the business and regulatory environment align with this goal.”

Reynolds kept details of the changes to the ZEV mandate under wraps but is understood to have told Nissan CEO Makoto Uchida: “Nothing is off the table.”

Key areas potentially up for review could include “flexibilities” that allow companies falling short of targets to earn “credits” or borrow from future quotas by reducing emissions from their internal combustion vehicles.

“Our goal is ambitious, but we must work with businesses to reach that zero-emission future,” Reynolds said. “We’ve demonstrated the pragmatism necessary to achieve that, and it’s exactly what Nissan wanted to see.”

Carwow’s research highlights that over three-quarters (77%) of drivers believe the government should offer broader financial support to the automotive industry to aid the transition to EVs.

The ZEV mandate, introduced in early 2024, this year requires 28% of all new vehicle sales to be fully electric or zero-emission, rising to 80% by 2030. However, concerns are mounting that the targets are unrealistic after year-end figures showed that many manufacturers failed to meet their targets, raising concerns over the feasibility of future quotas and the likely impact on domestic manufacturing.

Iain Reid, head of editorial at Carwow, stated: “The government recognised that the current ZEV mandate wasn’t fit for purpose when it committed to a policy review last year. However, words must now turn into action.”

He noted that despite the push toward EVs, sales remain below expectations. Even with significant manufacturer discounts, private EV adoption remains sluggish. Carwow’s research indicates that while many motorists support the transition, they believe the government should adjust targets and prioritise policies that accelerate EV ownership.

Nissan is understood to have warned the government that the ZEV Mandate - which imposes £15,000 fines per petrol or diesel car sold above the limit - risks potential job losses and future investment plans, jeopardising the future of its 7,000 employees in the UK, including 6,000 at its Sunderland plant.

The ZEV Mandate is said to have played a role in Stellantis’ November decision to close its Vauxhall van-making factory in Luton, with production confirmed to end next month.

European Commission president Ursula von der Leyen last week proposed changes to the EU's CO2 standards, granting car manufacturers a more flexible three-year timeframe to meet emissions targets instead of strict annual compliance.

This change which would allow manufacturers to balance emissions reductions across 2025-2027 rather than meeting a single-year target in 2025, aims to provide more time for carmakers to meet targets while maintaining overall emission reduction goals.

The European Commission said however that it would stick to its target that by 2035 all new cars and vans sold in the European Union would have zero CO2 emissions.