Government sets out steps to 2035 zero emission sales.

Government sets out steps to 2035 zero emission sales.

Posted by

Andy Bruce

October 2023

There were plenty in the fleet industry who were taken aback by last week’s announcement by Prime Minister Rishi Sunak over the change of end date for fossil-fuelled cars. Instead of banning the sale of new petrol and diesel cars from 2030 it was pushed back five years to 2035.

While there is some merit in this – company car drivers and salary sacrifice takers are pushing on with electrification, benefiting as they do from generous tax allowances – there remains little incentive for private buyers. So, I can see the sense in a more generous timeline to let private drivers ‘catch up’, particularly with the pressure on household finances continuing.

But today, if confidence had been found asking in the Government’s environmental commitment, then the announcement of the Zero Emission Vehicle (ZEV) mandate validates the steps fleets have been taking towards decarbonisation.

By 2030 the ZEV requires 80 per cent of all cars sold to be zero emission and 70% of all vans to be the same.

I believe this gives clear indication that company car fleets and those companies driven by the Environmental, Social and Governance (ESG) agenda to offer electric car salary sacrifice, are on the right track.

We certainly believe so. And we remain committed to helping fleets and companies reduce their carbon footprint.

In the meantime, the longer run out date gives an opportunity for the used car market for EVs to become stronger and those private individuals, perhaps wary of the new technology today, more time to gain confidence to make the change in the future.

The ZEV announcement certainly helps to have stability back on the table in the drive to Net Zero.

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