Transport decarbonisation plan, 2021
On 14 July 2021, the Government published its transport decarbonisation plan, Decarbonising transport: a Greener, Better Britain, which set out the commitments and actions the UK Government has taken, or is taking, to decarbonise the UK’s transport sector.
Zero Emissions Vehicle Mandate
To help achieve its 2030 and 2035 targets, as part of its Net Zero Strategy, the Government confirmed its plan to introduce a ZEV mandate from 2024. The mandate is a form of regulation that requires vehicle manufacturers to sell a minimum number zero emission vehicles as a proportion of their overall UK sales. In autumn 2023, Prime Minister Rishi Sunak changed the ban on new petrol and diesel car sales from 2030 to 2035.
Clean Air Zones
Some cities in the UK introduced Clean Air Zones (CAZs) to tackle air pollution. These zones often impose charges on vehicles that don’t meet specific emission standards, encouraging the use of cleaner vehicles like EVs.
Road Tax (Vehicle Excise Duty)
In the UK, EVs are exempt from paying vehicle excise duty (road tax) to promote their adoption as environmentally friendly vehicles. However, the government will remove this tax exemption starting April, 2025.
Company Car Tax Benefits
Company car tax rates for electric vehicles are significantly lower compared to traditional internal combustion engine vehicles. This tax incentive encourages businesses to adopt EVs in their fleets.
Funding for Research and Development
The UK government has provided funding for research and development in EV technology, battery manufacturing and associated industries.
Grants for Public Transport Electrification
Funding and grants have been offered to support the electrification of public transport systems, such as buses and taxis.
