On 24 December 2024 the Department for Transport (DfT) issued a consultation on “Phasing out the sale of new petrol and diesel cars from 2030 and Support for the Zero Emission Transition”. This represents the first major statement on the Zero Emission Vehicle (ZEV) transition period by the Labour government and provides some welcome certainty on key dates for the phase out of internal combustion engine (ICE) powered vehicles. 

DfT is consulting specifically on the ZEV mandate, as implemented through the Vehicle Emissions Trading Schemes Order 2023 (VETS). This regulatory framework was introduced to service two key goals: the government’s economic growth mission with the aim of raising living standards on the basis that ZEVs are cheaper to run, and as a critical element Net Zero goals. 

Key takeaways 

• DfT has confirmed that it is not bringing forward the 100% zero emission requirement from 2035, after the Conservative government previously pushed this back from 2030. However, no new solely petrol and diesel cars can be sold after 2030. The existing mandate already requires 80% of new cars and 70% of new vans to be zero emission from 2030 – the remaining 20/30% will need to be hybrid vehicles. 
• The government has stressed their commitment to providing clarity to the industry and that they do not want to risk current EV and charging point businesses and investment programmes by moving the goalposts again. 
• DfT is exploring options for types of hybrid vehicles that may be permitted to be sold during the transition period between 2030 and 2035. 
• The consultation paper stresses a clear intention to work with the industry to build a thriving automotive sector. This is borne out by the inclusion of a request for input on demand measures that could be introduced to encourage uptake of ZEVs during the transitional period – a positive indication that the government has taken on board industry feedback that support is needed on the demand side. 

Consultation questions and proposals 

The consultation includes 17 questions across two parts. The primary focus is on flexibilities in the ZEV mandate which should be extended or added to allow manufacturers to meet the mandate. 

Part 1 focusses on the planned 2030 phase-out of new ICE cars and CO2 requirements for vans. Specifically, DfT is seeking feedback on criteria to define which hybrid models of vehicle should be permitted during the transition period. They also propose a non-ZEV fleet average CO2 reduction target for vans from 2030 in light of the lack of hybrid models available and consider exemptions from the 2030 targets for small manufacturers and special purpose vehicles. 

Part 2 focusses on technical updates to the VETS to ensure the efficient running of the regulation. Proposed measures include allowing the option for vans to transfer unused CO2 emission allowances to cars and updating VETS to account for changes in utilisation factor.

Getting involved

The consultation period began on 24 December 2024 and will run for 8 weeks, ending on 18 February 2025. Following this, DfT will engage with stakeholders via workshops, roundtables and bilateral discussions. 

This is an important opportunity for industry to shape the transition, drive clarity, and push for useful measures such as demand side incentivisation. 

If you would like any further information, or advice related to any of the information in this article, please contact Chris Lewis or Charlotte Robinson.