The United Kingdom’s Department for Transport said the country’s zero-emission vehicle (ZEV) targets were met in 2024, with both passenger car and van markets exceeding required thresholds under the Vehicle Emissions Trading Schemes (VETS).
In its first annual assessment of the framework underpinning the UK’s ZEV mandate, the department reported a compliance rate of 24.3% for passenger cars, surpassing the mandated 22% target. The van segment reached 11.5%, above its 10% requirement.
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The evaluation covered both the ZEV mandate, which sets annual quotas for electric vehicle sales, and broader CO₂ emissions regulations for conventional vehicles. The policy forms part of the UK’s strategy to phase out new petrol and diesel cars by 2035.
The Department for Transport said there was no need to revise the current programmes following the results, noting that manufacturers met targets through a combination of increased electric vehicle sales and the use of regulatory flexibility mechanisms.
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These mechanisms include trading emissions certificates, banking credits for future compliance, converting CO₂ savings into ZEV credits, and borrowing credits from future years with a repayment premium of 3.5%.
According to the report, zero-emission vehicles accounted for 19.8% of total passenger car sales in 2024, while ZEV vans made up 6.8% of registrations. Meanwhile, average emissions from non-electric vehicles fell by 7.3% for cars and 7.6% for vans, supported by increased hybrid adoption and improved internal combustion engine efficiency.
Manufacturers also made extensive use of compliance tools. Passenger carmakers generated the equivalent of 4.7% additional ZEV registrations by converting CO₂ reductions into credits, while van manufacturers achieved an additional 5.3% through the same mechanism. Credit borrowing accounted for 1.2% of compliance in the car segment and 0.2% in vans. Around 39,000 passenger car certificates were traded, representing 2.1% of registrations, compared with about 200 certificates for vans.
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The department noted that no manufacturer incurred penalties in 2024, and some companies were able to bank surplus credits for future years.
The findings come amid continued pressure from the automotive industry to adjust the pace of the transition. Manufacturers have argued that the mandated quotas are rising too quickly and may require significant discounting to stimulate demand.
However, the government recently rejected calls to bring forward a formal review of the policy. The review is currently scheduled to begin at the end of 2026, with findings expected in 2027.
“[The review] is beginning this year, but early 2027, we feel, is the right point to make sure that we can test properly where the pressure points lie in the ZEV mandate and make sure that it continues to work for manufacturers,” said Keir Mather, a minister at the Department for Transport. “The government is incredibly clear that the EV transition is something that we stand resolutely behind.”
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While the review could adjust the pathway toward electrification, it is not expected to change the 2035 deadline for ending sales of new internal combustion engine vehicles.
The government has previously shown some flexibility in implementation. In April 2025, it reduced penalties for manufacturers missing interim targets following industry lobbying, including concerns raised by companies such as Stellantis over investment requirements in electric vehicle production.
