The implementation of a ZEV mandate and a VAT cut for public EV charging are among the measures supported by a new report on UK decarbonisation.
Mission Zero, published by former energy minister and Net Zero Review chair Chris Skidmore MP, contains 129 recommendations, and is based on a research process including more than 50 roundtables and 1,800 submissions.
Among its transport recommendations is the swift implementation of the ZEV (zero-emission vehicle) mandate from 2024, while maintaining regulations and funding to support EV/ZEV uptake and drive emissions reductions from ICE vehicles.
As previously outlined, the ZEV mandate would see manufacturers legally required to meet targets for a proportion of their sales being ZEV models, which would be increased annually.
The report argues that this would be an “important next step” for EV adoption.
It adds: “While the price of electric vehicles has fallen significantly, on average they still cost more than petrol or diesel vehicles and charging facilities are not yet evenly available across the country.
“This Review heard at the roundtables that any cuts to current funding and support would seriously risk undermining the sector at a critical stage.”
On the subject of charging, the report supports a campaign to reduce the price gap between home and public EV charging by equalising the VAT rates applied. Currently, home charging incurs 5% VAT, while public charging incurs 20%.
On the wider subject of EV charging, the report states: “For those dependent on public chargers, accessing them in some areas can be particularly difficult; some regions are ‘blackspots’, meaning people have to spend more money driving longer distances in order to charge. For example, London has approximately 31% of the UK’s chargepoints, while the North East has just 3%.
“The Climate Change Committee sets out that the government intends to rely primarily on competition to close the price gap between home and public charging, however there is little evidence to date that this is happening.
“Government should build on the Local Electric Vehicle Infrastructure pilot and enhance cooperation with local authorities to enable them to take a leading role in vehicle charging roll-out.
“A ‘broadband style’ approach should be taken to ensure that chargers are spread out fairly across the country. We need a complete chargepoint grid and full access to this across the UK.”
Although the report support measures to boost EV take-up, it also cautions that this could lead to an increase in traffic levels, which it says the government will need to counteract.
It states: “There is a risk that as electric vehicles become more affordable and cheaper to run, more people turn to driving and congestion could increase. Similarly, increased uptake of some types of transport services, such as ride-hailing or goods deliveries, could increase car journeys.
Congestion could rise from nine to 32 hours a year by 2040, with costs from £59.5 billion to £121.5 billion. This not only wastes people’s time, but also creates higher costs for drivers, dents productivity and increases air pollution.
“Some countries are using fiscal measures like road pricing to discourage driving. The Review has received calls for interventions like these to be replicated, and notes that it is important that the government considers how congestion can be avoided.”
Commenting with the release of the report, 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. As essential as that is environmentally, it also puts us at an economic advantage globally.
“We lead in areas including clean technologies, science, manufacturing and green finance – areas that, if managed right, can lead to new jobs and strong economic growth.
“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.”
Commenting for the government, Business and Energy Secretary Grant Shapps said: “With a wealth of talent and expertise, and a track record to be proud of, the UK is well placed to ensure that tackling climate change also brings new jobs and investment for businesses and communities.
“I am grateful to Chris Skidmore – the man who signed our climate commitments into law – for his detailed report, which offers a range of ideas and innovations for us to consider as we work to grasp the opportunities from green growth.”
Reacting to the report, BVRLA chief executive Gerry Keaney said: “The sheer scale, depth and ambition of the Net Zero Review demonstrates the importance of this topic.
“Decarbonisation is not a choice. The review should be taken seriously by companies and governmental departments in every sector. Led by fleet, the automotive sector has long been a trailblazer in decarbonisation.
“The gaps between the recommendations being published today and their ultimate transition into government policy will vary in size. Processes are complex and departments will need to come together to drive progress.
“Today’s review represents a monumental step forward. We will continue to actively engage with all stakeholders to represent the sector’s views and contribute to positive change.”