Substantial changes to ZEV Mandate expected
The government has said it will make substantial changes to ZEV Mandate targets after Nissan warned electric vehicle quotes threatened the future of its Sunderland plant.
The ZEV Mandate stipulates EV sales targets for vehicle manufacturers, with the proportion of total sales increasing each year to reach 80% by 2030.
However, vehicle manufacturers have said the targets are unrealistic with customer demand waning and warned they threaten both jobs and future investment.
Last November, Nissan’s European chief Guillaume Cartier said: “The Mandate risks undermining the business case for manufacturing cars in the UK, and the viability of thousands of jobs and billions of pounds in investment. We now need to see urgent action from the government by the end of the year to avoid a potentially irreversible impact on the UK automotive sector.”
The government announced an urgent consultation at the end of last year and now Secretary of State for Business and Trade Jonathan Reynolds has indicated that major changes have been agreed.
He said: “We will do everything we can to make sure Nissan has that secure long-term future in the UK, making sure the business and regulatory environment reflects that.
“The whole government is absolutely of the view that you will not get to the progress around net zero and the energy transition that we want to see by closing down British jobs and British industry.
“For us it’s about being ambitious as to the destination but making sure we’re working with business … to deliver on that ambitious end point. We’ve shown a level of pragmatism on that which is essential, and it’s absolutely what Nissan wanted to see.”
Details of how the ZEV Mandate could be relaxed have not been disclosed but could include allowing manufacturers who do not meet sales targets buying EV credits from other companies.
Reynolds said: “Nothing is off the table.”
