Government announces early review of ZEV Mandate
Sat 15 August 2026
View all news
The Government has formally launched its review of the Zero Emission Vehicle (ZEV) Mandate, opening a consultation that will run until 23 October 2026. The consultation asks manufacturers, suppliers, chargepoint operators, dealers and consumers for their views on the pathway to 2030.
The review had been scheduled for 2027 but following pressure from vehicle manufacturers and supporters - citing supply chain disruption, tariff uncertainty and economic headwinds - it has been brought forward. The announcement that it will take place more than a year ahead of schedule follows months of speculation about its timing.
The consultation will examine whether the annual sales trajectories set for manufacturers between 2027 and 2035 remain appropriate and sets out alternative, lower sales targets. The Government has stressed that the 2030 end-date for new petrol and diesel car sales, and the 2035 zero emission deadline for all new cars and vans, are not up for debate.
The consultation also explores what has been described as the ‘PHEV Loophole’. With new plug-in hybrid electric vehicles (PHEVs) seeing rapid market growth, new entrants are using a ‘utility factor’ flexibility to offset ZEV targets through hybrid sales rather than true zero emission deployment. This risks eroding expected carbon savings, the Government says.
The consultation is also consulting on four alternatives to the current 70% ZEV van sales target for 2030, aimed at easing compliance for manufacturers. Options one, two and three propose lower 2030 headline targets (60%, 50% and 40%, respectively) and steeper post-2030 growth, while option 4 maintains the 70% target but extends key flexibilities to 2034.
The review also considers regulatory flexibilities to assess whether existing mechanisms (such as banking, borrowing future allowances, and converting CO2 over-performance into ZEV credits) should be extended or altered.
Transport Secretary Heidi Alexander said: “The UK EV market is strong – sales are up, British manufacturers and chargepoint operators are investing billions, alongside our backing of £7.5bn, including our Electric Car Grant that has helped over 160,000 people make the switch.
“It’s right we keep targets under review to ensure they’re practical and back British industry. The end goal hasn’t changed – but we need to take business with us on the journey, and that’s exactly what we’re doing today, by making sure industry has the chance to shape how we get there.”
In response to the announcement Iain Coucher, Chair, ChargeUK said: "Any weakening threatens billions in charging investment and thus the wider opportunity from electrification. The most extreme options in this consultation threaten to entirely upend the UK’s reindustrialisation plans."
Mike Hawes, chief executive of the SMMT, welcomed the consultation saying: "Regulatory targets are now running ahead of current consumer demand, so this review is a timely opportunity to optimise the pace of change. This is a regulation that increasingly dictates consumer choice – and therefore automotive companies’ future strategies and viability – so it must work for all involved."
Colin Walker, Head of Transport at the ECIU, said: “Proposing to water down the UK’s biggest climate policy the day after temperatures hit 38C, and a summer of heat and drought that risks the UK having its worst ever harvest, may seem strange to the increasing number of people concerned by images of homes on fire, and the security and affordability of the food we eat."
The Energy and Climate Intelligence Unit (ECIU) has calculated that the most severe proposed change being consulted on – cutting the 2030 target from 80% to 50% – could reduce the number of new EVs arriving on the UK’s roads by 5.8 million. And with EVs capable of delivering significant fuel cost savings over their petrol equivalents, such a dramatic fall in EV uptake could cost UK families £23.6bn cumulatively by 2050 (in 2026 prices).
EVA England CEO Vicky Edmonds said: “The Government should look honestly at why EV demand has not grown as quickly as expected. But the answer is not to lower the ambition of the ZEV mandate - which has been absolutely critical for creating a market of EVs that people want to buy. It has to be to fix the things that are stopping drivers from making the switch."
The review is being run jointly by the Department for Transport (DfT), Office for Zero Emission Vehicles (OZEV) and the Department for Business and Trade (DBT). The Government's response will follow the conclusion of the consultation.
Related Links
< Back to news list