A ZEV mandate for HGVs: opportunity or disaster?

The ZEV mandate for vans has sparked debate, with critics arguing that policy goals often overlook the practical challenges of fleet adoption. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT) commented: “You can compel supply, but you can’t compel demand”, and looking at the 2024 registration of vans to date with BEV currently at 4.8% share, it would be hard to argue with this.

As an industry grappling with numerous regulatory changes, what we need more than anything is certainty. The ZEV mandate has certainly made the direction of travel for LCV clear: 10% of our van sales this year must be electric to meet OEM targets - and avoid penalties and associated reputational risks.

Barriers to purchasing electric vans are falling and with the total cost of ownership now comparable to diesel models, a major obstacle has been removed. However, much work is needed in expanding infrastructure and in shifting the attitudes and awareness of van operators towards a more sustainable mindset, supported by the continuation of the Plug-in Van Grant.

But what would a ZEV mandate mean for HGVs? For truck manufacturers, Vecto already sets the targets we need to hit: a 15% reduction in CO2 emissions by 2025 and 30% by 2030, compared to 2019 levels, and that means we know what our ICE/EV vehicle sales mix needs to be to balance overall emissions. And while the decarbonisation targets are challenging, getting our Vecto values down is a powerful driving force for our product development teams.

Introducing a ZEV mandate for HGVs would unnecessarily intensify the regulatory pressure on OEMs. Rather than imposing additional mandates, what the industry needs is clarity on the 2030 Vecto targets. Here in the UK, the current regulations, set before Brexit, still aim for a 30% reduction by 2030, while the EU raised its targets to 45% in June as part of its ’Fit for 55’ legislative package. This discrepancy creates uncertainty, and without updated and aligned targets, it is challenging for manufacturers to plan effectively.

Discussions around Euro-7—the latest in a series of standards aimed at reducing commercial vehicle engine emissions—are still unfolding, further increasing pressure on OEMs. But this is nothing new. Since the very first Euro standard was introduced, vehicle emissions have been slashed by 90%, showing that our industry always rises to the challenge, and delivers. With Euro-7, the significantly stricter regulations, together with real world emissions monitoring, will see another milestone reached in developing cleaner, more efficient HGVs.

Indeed, innovation is no longer optional and global competition from markets like China and the US leaves us, as European OEMs, with no choice but to accelerate our efforts.

That said, challenges remain. Developing charging infrastructure, ensuring grid reliability and addressing fleet concerns over capital cost and range are significant hurdles we need to overcome - but as an industry we are tackling them head on.

Programmes like the UK-funded ’Zero emission HGV and infrastructure demonstrator’ projects (Zehid) are creating jobs and supporting haulage sector decarbonisation, but more is needed. The entire focus must now shift to policymakers to provide the essential enablers: infrastructure investment, fleet renewal incentives and a regulatory framework that balances ambition with practicality. These measures should make the adoption of zero-emission vehicles a straightforward choice for HGV operators while also supporting OEMs in meeting the ambitious Vecto targets.

Vecto regulation is already compelling supply, but this is only part of the solution. The new government must offer clear direction, along with meaningful incentives and support, to ensure the industry prioritises decarbonisation and moves forward collectively. Only through collaboration can we achieve the ambitious goals ahead.

Carlos Rodrigues, MD, Renault Trucks UK & Ireland