Net-zero review drives delivery of Electric Vehicle sales mandate. Subscribe to Electric Vehicle News Bitesize Podcast for FREE!

The net zero review, conducted on behalf of the Department for Business, Energy and Industrial Strategy (BEIS), recommends the swift introduction of electric vehicle mandates and VAT relief to make public charging cheaper.

Moves to force OEMs to sell a certain number of zero-emission vehicles and lower VAT on public charging points – bringing them in line with home charging – are under review for how to do so by 2050.

Led by Chris Skidmore MP, chairman of the Net Zero Review, the document said “no time to waste” to develop policies that accelerate the UK’s progress towards its climate goals.

It said the government must “address the net risk of not acting quickly enough now” to move forward with the 25 by 25 series of policy recommendations without regret and without excuses.

Among the key recommendations associated with the automotive sector are:

Government ease delays in expected reforms by bringing a belated future transport bill to parliament.

Governments must quickly meet ZEV requirements and apply them starting in 2024, while maintaining regulations and funding to support the adoption of electric and other zero-emission vehicles, and continuing to drive emissions reductions from internal combustion engines.

By autumn 2023, His Majesty’s Treasury should review how policy incentivizes investment in decarbonization, including through the tax system and capital subsidies.

Government to adjust VAT on public and private electric vehicle charging in 2024.

Skidmore said: “We should be proud of the lead the UK has taken in tackling climate change, having exceeded expectations so far in our race to net zero emissions by 2050.

“In developing this report, we have engaged with communities, economists, and climate experts from across the country through more than 50 roundtables and 1800 submissions – all of which have led to the Mission Zero findings.

“My recommendations are designed to make the most of this historic opportunity, covering the length and breadth of our economy, so that people in every part of the country can reap the benefits of this both in their communities, and in their pockets.”

Today’s Net Zero review highlighted that, although the Society of Motor Manufacturers and Traders (SMMT) new car registrations data for 2022 showed that although the combined market share of EVs and plug-in hybrids reached 22.9% last year the majority of sales had been “concentrated amongst higher earners”.

However, it asserted that, spurred on by the ZEV mandate, the UK was likely to see EVs increasingly filter through to the second-hand market, offering “lower prices and making them more affordable for lower income households”.

Electric cars at home will continue to benefit from being cheaper to run than petrol cars unless prices at petrol stations fall below £1 a litre, research by MyEnergi has found.

The Net Zero review highlighted the FairCharge campaign’s call for the government to reduce VAT on public chargers, which is currently 20%.

She also said that the development of charging infrastructure in the UK should not be left to private companies alone, saying “a ‘broadband’ approach should be taken to ensure that charging points are equitably distributed across the country.”

The Review’s research shows that the UK has almost 35,000 public charging points for electric vehicles by early October 2022, with more than 1,200 new fast chargers and more than 5,000 new standard chargers installed in the first nine months of this year.

“With nearly 250,000 new plug-in registrations during the same period, that is just one new standard public charger installed for every 50 new plug-in electric vehicle registrations,” it said.

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