‘Short-sighted’ ZEV mandate demands threaten jobs, warning charging bosses
Any rollback on the legal targets set out in the ZEV mandate would put thousands of jobs at risk, according to leading figures in the charging industry.
In a coordinated campaign, four key bodies have urged the government to make a ‘swift and decisive’ move to maintain the current targets.
The unprecedented joint warning from BEAMA, ChargeUK, REA and UKSIF urges the Government “not to cave to short-sighted demands to water down the commitment”.
In November, the government announced a fast-track consultation into the mandate after coming under pressure from the car industry. Some manufacturers are worried that they will not reach the targets, which require 22% of all their sales to be zero-emission this year, rising to 28% in 2025.
The Society of Motor Manufacturers and Traders (SMMT) says the mandate will cost the industry £6 billion this year in fines, credit swaps and discounts.
However, the four bodies which represent charge point operators, manufacturers, service providers, infrastructure firms and investors, say softening the targets would delay the decarbonisation of transport and threaten investment and jobs.
They argue that less pressure on car makers to sell EVs would soften interest in the infrastructure needed to support the UK’s transition to electric vehicles. This in turn would damage consumer confidence in the charging network, making them even less likely to go electric.
‘Wavering undermines confidence’
James Alexander, CEO of UKSIF (The UK Sustainable Investment and Finance Association), said: “Investors have made significant investments into EVs and charging infrastructure based on the ZEV mandate and the long-term confidence it gave them.
“Policy wavering risks undermining that confidence, which would be very hard to recover from. Meanwhile the lack of a long-term sector decarbonisation plan for UK transport is stalling further private investment and risks widening the gap between our emissions targets and our trajectory.”
The groups argue that private investment is behind the majority of the £6bn investment in the UK’s charging network and that chargepoint operators are already working to meet future demand.
They also argue that the auto industry as a whole is on track to meet the ZEV mandate targets, with EVs making up a quarter of November’s new car registrations.
The SMMT, however, estimates that sales of new electric cars will account for around 19% of all new models by the end of 2024, leaving manufacturers to borrow allowances from future years or buy carbon credits from pure EV makers such as Tesla and Polestar in order to hit targets.
Vicky Read, CEO of ChargeUK said: “The ZEV mandate is working. More and more new and used EVs are being sold as drivers embrace the switch to electric vehicles. ChargeUK members are keeping ahead of demand by rolling out the infrastructure to ensure drivers have access to the right charging solution in the right place.
“But this hasn’t happened by accident, our members have been able to put in the hard work confident the government backed their efforts. We need ministers to reconfirm that they will stand by the current ZEV mandate or they risk fatally spooking the very investors they say they are so keen to attract to the UK.”
Trevor Hutchings, CEO of the REA (Association for Renewable Energy & Clean Technology), added: “The government will not achieve its legally binding net zero targets without decarbonising transport. Electric vehicles are essential to this so watering down sales targets would be an own goal.
“It would also put at risk investment and jobs at the very time when we’re in a global race to secure manufacturing in these technologies.”