Key facts
- UK Prime Minister Keir Starmer intends to reduce the 2030 electric vehicle sales target from 80% to 50%.
- The decision aims to address concerns from the automotive industry and unions regarding investment and job security.
- This move represents a significant shift from the original net-zero agenda championed by Energy Secretary Ed Miliband.
- The proposed changes will undergo a consultation process and require approval from devolved administrations.
- Industry groups and investors have voiced concerns about the potential impact on charging infrastructure investment.
Prime Minister Keir Starmer is set to significantly reduce the UK's electric vehicle (EV) sales targets, a move that directly challenges Energy Secretary Ed Miliband's net-zero agenda. The decision, reportedly made to appease concerns within the automotive industry and from the Unite union, will lower the 2030 Zero Emission Vehicle (ZEV) mandate requirement from 80% to 50% for new car sales to be electric.
Industry leaders and unions had warned that the original mandate could force manufacturers to withdraw investment from the UK and lead to substantial job losses. Sharon Graham, General Secretary of Unite, stated that the targets must be "radically reduced" to prevent the "decimation of the automotive industry," which contributes £25 billion to the economy and supports 183,000 jobs.
Motoring bosses also expressed frustration over having to offer significant discounts to avoid fines of £12,000 per car sold over the quota. This decision marks a notable U-turn for Miliband's green initiatives, which have also faced pressure to scale back on oil and gas drilling. Miliband had previously argued for strengthening the EV transition plan, asserting that the ZEV mandate would ultimately benefit consumers and domestic manufacturing.
However, the proposed changes are unlikely to satisfy the EV industry and investors. James Alexander, CEO of UK Sustainable Investment and Finance Association (UKSIF), warned that watering down the targets could signal a lack of long-term government commitment, potentially jeopardizing future financing for charging infrastructure. The ZEV mandate, introduced in 2020, has seen gradual increases in electric car sales quotas since coming into force in 2024, with a scheduled rise to 80% by 2030, prior to the planned ban on new petrol and diesel car sales.