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UK government proposes cutting EV sales targets

Created at 14 Aug · 1:36 PM1 source↑ Market-relevant
IN SHORT

The UK government is consulting on reducing electric vehicle sales targets for 2030, potentially increasing future carbon emissions. The proposal, which could lower the target to 50% from 80%, aims to support the automotive industry but faces opposition from climate campaigners and the EV charging sector.

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Key Numbers

50%potential 2030 EV sales target
80%current 2030 EV sales target
29%UK EV sales growth this year
33%current EV sales target for this year
23 Octoberend of consultation period

Who's Involved

Andy Burnham
UK government official proposing EV target cuts
Heidi Alexander
UK transport secretary
Mike Hawes
CEO of the Society of Motor Manufacturers and Traders
Delvin Lane
CEO of InstaVolt
ChargeUK
EV charging industry lobby group
New Automotive
thinktank estimating EV sales

↳ Why This Matters

The UK government's potential reduction of EV sales targets could significantly impact the country's climate goals, the future of its automotive industry, and the substantial investments planned by the EV charging infrastructure sector.

Key facts

  • UK government is consulting on reducing electric vehicle sales targets.
  • The proposed 2030 target could be as low as 50% of new car sales, down from 80%.
  • The automotive industry argues current targets are too demanding.
  • Climate campaigners and EV charging companies oppose the potential reduction.
  • The consultation period runs until October 23.

The UK government has initiated a consultation on potentially lowering its targets for electric vehicle (EV) sales, a move that could significantly increase future carbon dioxide emissions. The proposal, announced on Friday, suggests reducing the goal for new EVs to constitute as little as 50% of all new car sales by 2030, a decrease from the current 80% target. Several options are being considered, including maintaining the existing target or cutting it to 70%, 60%, or 50%.

The automotive industry has been advocating for a review, arguing that the current Zero Emission Vehicle (ZEV) mandate places undue pressure on manufacturers, potentially leading to discounts, job losses, and factory closures. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, stated that the review is a timely opportunity to adjust the transition to work for all parties involved.

However, the proposed changes have drawn strong opposition from environmental groups and the electric car charging sector. Climate campaigners highlight that the transition to EVs is crucial for reducing UK carbon pollution. The charging industry, which plans to invest billions in infrastructure, expressed despair over the uncertainty, with companies like InstaVolt warning that such policy shifts could deter essential private capital investment. Delvin Lane, CEO of InstaVolt, emphasized that investment in ultra-rapid charging infrastructure relies on a clear policy runway.

This potential rollback follows previous adjustments made by the government, including the introduction of 'flexibilities' last year that allowed more plug-in hybrid vehicles and later sales to count towards the mandate. The consultation, which will run until October 23, will also consider extending these flexibilities.

Frequently asked questions

Under existing rules, carmakers need to sell an increasing proportion of pure electric cars each year, tightening from 33% this year to 80% by 2030.

The industry argues that the current targets, known as the zero emission vehicle (ZEV) mandate, are putting too much pressure on manufacturers, forcing them to sell EVs at discounts and threatening job losses or factory closures.

Climate campaigners and the electric car charging industry are strongly opposed to the potential reduction in targets.

Lowering the targets could add millions of tonnes a year to the UK’s future carbon dioxide emissions and risk deterring private investment in EV charging infrastructure.

What Happens Next

01The consultation on EV sales targets will run until October 23.

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Cadence

How It Developed

The UK government launched a consultation on reducing electric vehicle sales targets.
The proposal could lower the 2030 target for new EVs to 50% from 80%.
Automotive industry groups argue current targets pressure manufacturers and threaten jobs.
Climate campaigners and the EV charging industry oppose the proposed changes.
The consultation includes options for targets of 70%, 60%, or 50%, or leaving the target unchanged.
Loopholes allowing plug-in hybrid EVs and future sales flexibility may also be extended.

Sources

T1
Andy Burnham looks to cut new EV sales targetsThe Guardian

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