UK to Ease 2030 Electric Car Target

JAKARTA - The British government is preparing to loosen the target for the sale of pure electric cars in 2030 after receiving pressure from the automotive industry and trade unions. The target, which originally required 80 percent of new car sales to be battery electric vehicles, could be cut to 50 percent.

As reported by The Guardian, quoted Sunday, June 14, the British government is preparing consultations to lower the target for the transition of electric vehicles by the end of the decade. Car manufacturers and trade unions warn that the old rules could penalize manufacturers with fines and threaten jobs.

As one of the major automotive markets in Europe, the change in the direction of British policy could affect investment in electric vehicles and the development of charging infrastructure.

Even so, the ban on the sale of new cars that run on pure gasoline or diesel fuel in 2030 still applies. This means that half of new car sales can still be filled with hybrid vehicles, namely cars that use gasoline engines and electric motors. The deadline for the sale of new hybrid cars in 2035 is also expected to continue.

This target is known as the Zero Emission Vehicle or ZEV mandate. The rule was introduced by the Conservative government in 2023 to encourage manufacturers to increase sales of electric cars to 80 percent by 2030.

If this change is implemented, the Labor Party government will weaken the ZEV rule for the second time. Last year, the British government also gave more time for the sale of plug-in hybrids, which are gasoline-powered cars with small batteries that can be recharged.

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Environmental groups warn the policy could raise emissions. Currently, almost 14 percent of car sales in the UK come from plug-in hybrid models.

According to a report by the Sunday Times, quoted by The Guardian, British Prime Minister Keir Starmer chose to support Business Minister Peter Kyle who wanted to loosen the mandate. This position is different from Energy Minister Ed Miliband who encourages the net zero emissions target to be maintained.

Electric car sales in Britain have actually continued to rise, but have not reached the government's target. In May, battery electric cars accounted for 27.3 percent of new car registrations, still below the 33 percent mandate for sales by 2026.

Carmakers say they have to offer big discounts to boost EV sales because production costs have not come down as fast as expected.

Under the ZEV rules, manufacturers get credit from the sale of electric cars. However, they can be fined if they fail to meet the increasing share of EV sales each year compared to gasoline and diesel cars.

The Unite union said the rules could trigger fines of up to 11,000 pounds per vehicle and threaten jobs in the UK automotive sector.

Unite general secretary Sharon Graham called the proposed changes a "major victory". She said automotive workers were increasingly anxious about the future of their jobs.

"Not taking action would be a damaging act for a sector that is the crown jewel of British manufacturing. The consultation must be concluded immediately and the results quickly implemented so that the sector and workers have certainty," Graham said, as quoted by The Guardian.

However, the electric vehicle charging industry assesses that the relaxation risks hindering investment. James Alexander, Chief Executive of the UK Sustainable Investment and Finance Association, said that the ZEV mandate is important to encourage investment in charging infrastructure.

"Any attempt to weaken this target can send a warning signal about the government's long-term commitment to the electrification of the transportation network," said Alexander.

ChargeUK Chief Executive Vicky Read also warned that easing the mandate could hinder the development of charging infrastructure and disrupt the transition process.

In the same report, The Guardian said the Transport & Environment think tank also assessed that industry pressure to weaken the target could backfire. T&E's UK director, Anna Krajinska, said the ZEV policy had driven billions of pounds of investment, from manufacturers to EV charging.

According to Krajinska, withdrawing from the policy would send a signal that Britain is not serious about competing in the global electric car market or safeguarding the future of its automotive industry.