Car manufacturers will be required to produce a set proportion of electric vehicles from January 2024 under a new “mandate” to be announced this week.
On Thursday ministers will confirm the Zero Emissions Vehicle (ZEV) mandate as part of a package of green policies designed to help the UK reach its target of net zero greenhouse gas emissions by 2050.
The mandate will require car and van manufacturers to produce a specific proportion of electric vehicles in a push to help the industry reach a government goal of no new petrol and diesel cars in the next seven years.
Under the policy, electric vehicle sales will be converted into “certificates”.
Manufacturers will be required to hold a certain number of certificates at the end of each year, either by selling electric vehicles or buying certificates from other manufacturers.
The idea has been subject to a series of consultations since it was first floated in the Net Zero strategy in October 2021, including a policy design consultation last April.
Green day
Ministers will use “Green Day” on Thursday to respond to the recommendations of Chris Skidmore, a Tory MP commissioned to produce an independent Net Zero review last September.
Mr Skidmore’s 300-page review recommended a ZEV mandate was implemented by 2024.
The announcements will also include more investment in the heat pump industry and an update to the Green Finance Strategy – the Government’s plan to make the City more eco-friendly.
The Telegraph understands the package of measures will focus on British businesses and industry, and will not include new restrictions on the public.
A Government source stressed that the announcements will also contain measures to enhance energy security, including on renewable energy sources.
Grant Shapps, the Energy Secretary, is expected to say that the public should not be forced to pay “eye-watering” energy bills they experienced following Russia’s invasion of Ukraine last year and that ministers will invest in new technology and energy sources to prevent the same happening again.
It comes after Jeremy Hunt reclassified nuclear power as “sustainable” in his Budget earlier this month.
The Chancellor said a new Great British Nuclear scheme would “bring down costs” and “provide opportunities” in the hope that a quarter of the UK’s electricity generation will be provided by nuclear power stations by 2050.
