Britain considers easing 2030 zero-emission vehicle targets

By William James

LONDON, Aug 14 (Reuters) - Britain on Friday set out a range of options that could ease the pressure on car manufacturers to switch new sales to zero-emission vehicles, launching a review of the existing targets which gradually phase out new petrol and diesel cars.

The mandate, introduced in 2024, requires carmakers to ensure a rising proportion of their annual sales are zero-emission vehicles, with EVs accounting for 33% of new car sales in 2026, 80% in 2030 and 100% by 2035.

The policy is designed to accelerate the industry's transition to electric vehicles by imposing fines on manufacturers that miss the targets. Carmakers have argued, however, that supply-chain disruptions and insufficient consumer demand are making the requirements difficult to meet.

A government consultation opened on Friday seeking views from the industry on four alternative pathways for the targets. Three would retain the 2035 endpoint but cut the 2030 target to as low as 50%. A fourth would keep the existing path but introduce new flexibility to help manufacturers comply.

"In the context of challenging and complex global economic conditions, including supply chain disruption and tariff and trade uncertainty, the UK is reviewing targets to ensure they remain pro-business and grounded in the real world," a Department for Transport statement said.

The Society of Motor Manufacturers and Traders has previously argued for an urgent review of the whole mandate, saying higher energy prices, incomplete charging infrastructure and weak consumer confidence were holding back demand despite manufacturers offering substantial discounts on EVs.

The Labour government, which inherited the ZEV policy from the Conservative Party when it came to power in 2024, last year introduced a number of technical changes that made it easier for manufacturers to meet the targets.

Battery EVs accounted for 27.4% of new car registrations in July, data published earlier this month by industry body New AutoMotive showed. The body said this showed sales were ahead of the level required for compliance once existing flexibilities within the mandate were taken into account.

(Reporting by William James, Editing by William Maclean)