UK Weighs Cutting 2030 Zero-Emission Car Target from 80% to 50%
Key Facts
The UK government is considering changes to its zero-emission vehicle sales mandate, with a decision on whether to change course left open until October 26, 2026. Current legislation sets a 80% share for these vehicles in sales by 2030, with an indicative path to 100% in 2035, according to the Department for Transport. The review proposes three alternatives that cut the 2030 target to 70%, 60% or 50%, while keeping the 2035 target at 100% in each case. A fourth option would retain the current targets but extend some compliance flexibilities. The Department for Transport said consultation evidence “could contribute to future amendments” to the Vehicle Emissions Trading Schemes Order.
The Department for Transport began its review on August 14 to assess how the mandate is working and whether future amendments to the order could be made. The department says the aim is to keep the policy effective in driving the shift to zero-emission vehicles while supporting consumers, industry and the UK’s broader decarbonization goals. This reflects a trade-off between maintaining a rapid legislative path to the transition and giving automakers more room to comply. The proposed alternative targets do not mean the government has adopted any of them; coverage published on October 26 confirmed that it had not decided whether to change the mandate. All three alternatives keep the 2035 target at 100%, despite differing levels required in 2030.
The review cited slower demand growth than expected, according to the Department for Transport’s presentation of registration figures. Zero-emission cars accounted for 19.8% in the 2024 scheme year, rising to 23.3% in 2025 based on preliminary compliance data. The share reached 29.1% in June 2026, remaining below the 2030 target of 80%. The figures show progress across the periods cited, but put the size of the gap with the legislative target at the center of debate over the pace of implementation. The Society of Motor Manufacturers and Traders said record electric-car performance in September reflected a wider choice of models, while uptake remained below mandated targets.
The fourth option focuses on easing how compliance is calculated rather than lowering the stated target. It would keep the 2030 target at 80% and the 2035 path at 100%, while extending borrowing, banking and CO2 credit conversion mechanisms through 2034. The flexibilities could allow actual sales to remain below the main targets after 2030, according to the department’s description of the option. This would give manufacturers additional tools to manage their obligations over several years, while leaving the official target figure in place. The chief executive of the Society of Motor Manufacturers and Traders warned that “uptake remains below mandated targets,” and said the UK has “the toughest targets in the world and the highest energy costs.”
The government lists broader pressures facing the automotive sector, including higher energy and labor costs, tariffs and trade barriers, supply-chain risks and uncertainty over future regulations. The department said these factors had weakened the industry’s competitiveness and confidence, while an industry representative called for the review to take companies’ ability to remain viable and the UK’s competitiveness into account. In separate economic news, British retail sales volumes fell 0.4% in September from August, after rising 0.7% in August. On a quarterly basis, retail volumes rose 0.7% in the third quarter from the second quarter, according to the Office for National Statistics. The office attributed September’s decline to lower sales at mail-order businesses and department stores, while online clothing retailers said warmer weather had hurt seasonal clothing sales.
The government consultation closed at 11:59 p.m. on October 23, and the department said it would hold extensive discussions with stakeholders, including workshops, roundtables and bilateral talks, before preparing the review. The government aims to complete its review of the Vehicle Emissions Trading Schemes Order by early 2027, and the evidence could be used in future amendments. The UK budget is due on Wednesday, October 28, according to the date set by the chancellor, though this does not establish that decisions on transport or energy will be announced. The next retail sales data release is scheduled for November 20. The next step on cars therefore remains tied to the outcome of the government review, rather than to a change of course that has already been decided.