Report: Introduction of HGV zero emission mandate would have "negligible" inflationary impact
Mon 18 May 2026
View all news
A briefing paper from Green Alliance says that rather than adding to inflation as critics contend, a ZEV mandate for HGVs would reduce haulage costs by seven percent between 2027 and 2040.
The think-tank's analysis is based on modelling work in response to the Government's consultation on a zero emission mandate for HGVs that would end the sale of new, polluting diesel lorries by 2040.
The briefing says that the introduction of rules to phase out sales of new diesel-fuelled heavy goods vehicles (HGVs) by 2040 would cut freight operators' costs and curb inflation, by accelerating the shift to electric trucks which will be increasingly cost competitive.
The authors contend that continuing to rely on diesel-fuelled trucks to transport goods could see freight costs rise by as much as 13 per cent in a single year in the event of another fossil fuel shock, such as that currently impacting the UK as a result of the Iran War.
A ZEV mandate for trucks, it says, will make the UK more resilient to fossil fuel price volatility while having little or no impact on inflation between now and 2040.
Green Alliance's briefing was prepared to investigate claims by some (including the Telegraph) that a new ZEV mandate would push up costs for freight operators - and, thus, wider inflation - as they would have to invest in expensive new electric trucks and charging infrastructure.
Image: Courtesy Mercedes
Related Links
< Back to news list