Major Developments in 2024

Zero Emission Vehicle (ZEV) Mandate and 2030 Consultation
The Vehicle Emissions Trading Schemes Order 2023 (VETS Order) delivering the ZEV mandate, came into force in Great Britain in January 2024, and in Northern Ireland in January 2025, bringing the whole UK under its framework. The UK aims to phase out new internal combustion engine cars by 2030. In December 2024, a consultation on the 2030-35 requirements for non- zero emission cars and vans was launched. The ZEV Mandate requires 80% of new cars to be ZEV by 2030. Based on consultation feedback, the Government plans to reinstate the phase-out of new pure combustion engine cars from 2030.

Vehicle Incentives and Taxation Measures
In the October 2024 Budget, it was decided to support the uptake of electric vehicles (EVs) through tax incentives and funding. It will be achieved by providing £120 million in 2025-26 for the continuation of the Plug-in Grant for vans, taxis, motorcycles, and wheelchair-accessible vehicles. It was also announced that, starting 1 April 2025, Vehicle Excise Duty first-year rates for new cars will be adjusted to support the transition to zero-emission and electric vehicles. This change will increase the differences in rates between zero-emission, hybrid, and internal combustion engine (ICE) cars. Company Car Tax rates have also been set for 2028-2029 and 2029-30 to provide long-term certainty for taxpayers and industry. Rates will continue to assist the take-up of zero-emission vehicles.

Charging Infrastructure
Local Electric Vehicle Infrastructure (LEVI) Fund. Government investment will continue to accelerate the rollout of public charging infrastructure, with over 100,000 chargepoints expected to be delivered through the £381m LEVI Fund.

Permitted Development Rights (PDR) and Section 50 Licences
To accelerate the roll-out of charging infrastructure changes have simplified and sped up public chargepoint installations, such as allowing local authorities to appoint operators without planning permission. In December further changes permitted development rights, including taller chargepoints and equipment housing near highways. These will reduce costs and installation time for EV chargepoints in England, to allow rapid expansion. Wider changes to remove planning barriers for EV chargepoint installation will continue to be considered. Like PDR, in December the Government confirmed it would proceed with changes to Section 50 licences. Currently, Chargepoint operators (CPO) are required to apply for a Section 50 licence, each time the surface of the highway is broken to install a chargepoint. The changes will allow CPOs to apply for Section 50 permits, which are easier to obtain.

Demonstration Projects

The up to £200m Zero Emission HGV and Infrastructure Demonstrator (ZEHID) programme aims to deploy around 350 zero-emission (ZE) heavy goods vehicles (HGVs), including both battery electric and hydrogen fuel cell models, along with their associated recharging and refuelling sites. The programme is currently in the delivery phase, with all vehicle and infrastructure orders being placed. These should be delivered and operational by March 2026. Following this, a five-year demonstrator period will commence, during which real-world data from the vehicles and infrastructure will be collected and analysed. This data will be crucial in understanding the performance, infrastructure needs, and cost-effectiveness of ZE HGVs in various operational scenarios.

The programme will also address initial public infrastructure provision and provide confidence to the industry regarding which ZE HGV technology may be better suited for specific use cases. The ZEHID programme is part of the UK’s broader efforts to decarbonise road transport and achieve net-zero emissions by 2050. By supporting the deployment of ZE HGVs and the necessary infrastructure, the programme aims to stimulate innovation, reduce greenhouse gas emissions, and promote the adoption of cleaner technologies in the logistics sector.

Outlook

2025 will be another important year for the UK’s drive to decarbonise road transport. The outcome of the ZEV mandate consultation will be used to shape future policy development.

The Government aims to phase out new internal combustion engine cars by 2030 and has committed to ensuring 80% of new cars are zero emission vehicles (ZEV) by that date. The Transport Decarbonisation Plan outlines the actions needed to decarbonise the entire transport system in the UK, including measures to support the uptake of EVs and improve charging infrastructure. The plan emphasises the importance of reducing emissions from surface transport, which is currently the highest greenhouse gas emitting sector in the UK.