UK ZEV Mandate

Targets and trading

The Vehicle Emissions Trading Schemes Order 2023 (SI 2023/1394) entered force on 1 January 2024 and sets the annual share of each manufacturer's new registrations that must be zero emission at the tailpipe (0 g CO2/km on WLTP).

• Cars: 22% (2024), 28% (2025), 33% (2026), 38% (2027), 52% (2028), 66% (2029), 80% (2030).
• Vans: 10% (2024), 16% (2025), 24% (2026), 34% (2027), 46% (2028), 58% (2029), 70% (2030).
• Both reach 100% by 2035.

Compliance uses tradable allowances. Makers can bank credits, borrow against future years (within annual caps), trade between firms, convert a capped share of CO2 credits into ZEV credits, and from 2025 transfer between the car and van schemes. A shortfall after all flexibilities triggers a payment per non-compliant vehicle.

2025 changes

The joint government response of 7 April 2025 reset several parameters:

• The end of new pure petrol and diesel car sales is confirmed for 2030; full hybrids (HEV) and plug-in hybrids (PHEV) may be sold from 2030 to 2035, but mild hybrids (MHEV) are excluded.
• The compliance payment was cut from 15,000 to 12,000 pounds per car, and from 18,000 to 15,000 pounds per van.
• CO2-to-ZEV conversion caps were raised and borrowing and cross-scheme transfers extended through 2029.

Market and hiring relevance

The mandate is the binding driver of UK EV supply planning and pricing, with non-compliance priced explicitly per vehicle. Demand sits in OEM compliance and credit-trading functions, fleet-electrification consultancy, and policy-analyst roles tracking the VETS settings.