The UK has committed to net-zero carbon emissions by 2050. Transport was responsible
for 26% of total UK greenhouse gas emissions in 2021, making it the largest emitting
sector of the UK economy. Over half (52%) of the UK’s transport emissions come from
cars.
Electric vehicles offer a way to reduce these emissions, because full battery electric
or hydrogen fuel cell vehicles produce zero carbon emissions at the tailpipe. In February
2024 the government said “the transition to electric vehicles (EVs) is a crucial step
towards achieving the UK’s net zero target.”
In November 2020, then Prime Minister Boris Johnson announced that the sale of new
fully petrol and diesel cars and vans would be phased out by 2030, and that all new
cars and vans would be zero emission by 2035. In 2023 then Prime Minister Rishi Sunak
changed this phase-out date to 2035. The 2024 Labour party manifesto pledged [PDF]
to restore the phase-out date of 2030 “for new cars with internal combustion engines”.
In 2021 the government said that 2040 would be a ‘backstop’ phase-out date for new
non zero-emission vehicles of all other types, including HGVs and buses.
Progress on the EV transition
The market for EVs is small yet growing. Just 3% of cars (931,000) were battery electric
in the UK at the end of 2023, and 7% were hybrid electric (using an electric motor
as well as petrol/diesel). Battery electric cars accounted for 16% of all new car
registrations in 2023, an increase from 1% in 2018.
In its 2024 inquiry into EV strategy, the House of Lords Environment and Climate Change
Committee said that demand for electric cars is being constrained due to their upfront
cost, inadequate charging infrastructure and general consumer scepticism.
Conservative government EV policy 2020-2024
In January 2024, the government introduced a zero emission vehicle (ZEV) mandate for
car manufacturers. The ZEV mandate is intended to provide greater certainty to manufacturers,
and provide a greater range of EV options to consumers.
The mandate specifies the minimum proportion of car manufacturers’ sales that must
be zero-emission vehicles. This will increase from 22% in 2024 to 80% by 2030, and
100% in 2035.
Improving charging infrastructure
The Conservative government took a range of steps to improve EV charging infrastructure.
There are now a variety of UK-wide grant schemes to support new EV chargepoints outside
homes and at workplaces. In England, Local Electric Vehicle Infrastructure (LEVI)
funding is available for local authorities. The Conservative government also planned
to open a Rapid Charging fund (RCF) to increase provision of chargepoints at motorway
service stations.
In 2021 the government legislated to require EV chargepoints to be installed in a
range of new build homes and other buildings. In 2023 it introduced regulations to
improve the customer experience of on-street EV charging, including contactless payments.
In 2022 the British Standards Institute (BSI) produced a voluntary specification for
the installation of accessible chargepoints, to improve EV charging for people with
disabilities.
The devolved administrations in Scotland, Wales and Northern Ireland also have their
own strategies for EV infrastructure.
UK electric vehicle industry and global competition
The UK automotive industry has started repurposing production towards EVs, requiring
large investments to upgrade factories and increase domestic battery manufacturing
capacity. The Society of Motor Manufacturers and Traders (SMMT), trade body for the
sector, said that “more than £20 billion” was invested in zero emission vehicle production
in the UK in 2023.
There is global competition to attract investments in the electric vehicle supply
chain. China became the biggest producer of electric cars in 2023 and Chinese exports
are expected to increase further in coming years, putting European and US manufacturers
under pressure.
The US has responded with generous subsidies to support its domestic industry through
the Inflation Reduction Act and in 2023 imposed 100% tariffs on imports of Chinese
EVs. The EU has also introduced measures to support European manufacturers and in
July 2024 announced 17-38% tariffs on EVs from China. The UK has not so far applied
tariffs on EV imports.
The government published an Advanced Manufacturing Plan and a UK battery strategy
in November 2023 that set out its policy to support UK industry. With reference to
global competition, the government said it would “not be drawn into a distortive subsidy
battle”. The plans focus on the UK’s strengths, such as its R&D sector, and included
£2 billion funding for the UK automotive industry.
EVs and electricity demand
Increasing the number of EVs will reduce petrol and diesel demand but add to electricity
demand. This could increase pressure on Great Britain’s electricity grid network,
operated by National Grid Electricity System Operator (ESO). There has previously
been concern about the challenges to the grid, in terms of electrical capacity and
grid balancing.
However National Grid ESO has said that although demand for electricity will increase,
there will be a managed transition that will be within the range the grid can handle.
EVs also have the potential to help balance a more flexible and low carbon grid through
developments that allow their batteries to charge at optimum times, known as “smart
charging”, and to supply electricity in times of high demand, known as “vehicle to
grid”.
EVs and environmental impact
The total greenhouse gas emissions from an EV are known as its “lifecycle emissions”.
These combine the emissions from manufacturing the vehicle (which tend to be higher
than manufacturing internal-combustion vehicles), powering the vehicle through its
life (which tend to be lower than powering internal-combustion vehicles), and decommissioning
the batteries at the end of their life.
Calculations of lifecycle emissions vary based on the methodology and assumptions
used. The International Energy Agency’s lifecycle emission comparisons calculates
that in the UK, a medium sized EV has higher manufacturing emissions that an internal-combustion
engine equivalent, but the lower emissions from powering the EV mean its cumulative
emissions are lower after 3 years of use.
There are various other environmental considerations related to EVs, including the
use of critical minerals in batteries, which have challenges with sustainable extraction,
and how best to recycle or reuse batteries.
The UK's electric vehicle transition could help meet climate goals, and cut drivers’
running costs. Challenges include upfront prices, charging infrastructure, and global
trade issues.
disclaimer
<p>This information is provided to Members of Parliament in support of their
parliamentary duties and is not intended to address the specific circumstances of
any particular individual. It should not be relied upon as being up to date; the law
or policies may have changes since it was last updated; and it should not be relied
upon as legal or professional advice or as a substitute for it. A suitably qualified
professional should be consulted if specific advice or information is required.</p>
<p>This information is provided subject to our general terms and conditions
which are available online or may be provided on request in hard copy. Authors are
available to discuss the content of this briefing with Members and their staff, but
not with the general public.</p>
htmlsummary
<p>The UK has <a href="https://www.legislation.gov.uk/ukpga/2008/27/section/1">committed
to net-zero carbon emissions</a> by 2050. <a href="https://www.gov.uk/government/statistics/transport-and-environment-statistics-2023/transport-and-environment-statistics-2023#main-findings">Transport
was responsible for 26% of total UK greenhouse gas emissions</a> in 2021, making
it the largest emitting sector of the UK economy. Over half (52%) of the <a href="https://www.gov.uk/government/statistics/transport-and-environment-statistics-2023/transport-and-environment-statistics-2023#greenhouse-gas-emissions-from-transport-2021:~:text=Transport%20produced%2026%25">UK&rsquo;s
transport emissions</a> come from cars.</p>
<p>Electric vehicles offer a way to reduce these emissions, because full battery
electric or hydrogen fuel cell vehicles produce zero carbon emissions at the tailpipe.
In February 2024 <a href="https://www.gov.uk/government/publications/electric-vehicles-costs-charging-and-infrastructure/electric-vehicles-costs-charging-and-infrastructure">the
government said</a> &ldquo;the transition to electric vehicles (EVs) is
a crucial step towards achieving the UK&rsquo;s net zero target.&rdquo;</p>
<p>In November 2020, then Prime Minister Boris Johnson announced that the sale
of new fully petrol and diesel cars and vans would be <a href="https://www.gov.uk/government/publications/the-ten-point-plan-for-a-green-industrial-revolution">phased
out by 2030</a>, and that all new cars and vans would be zero emission by 2035.
In 2023 then <a href="https://www.gov.uk/government/speeches/pm-speech-on-net-zero-20-september-2023#:~:text=You'll%20still%20be%20able,cars%20and%20vans%20until%202035.">Prime
Minister Rishi Sunak changed this phase-out date</a> to 2035. The <a href="https://labour.org.uk/wp-content/uploads/2024/06/Labour-Party-manifesto-2024.pdf#page=33">2024
Labour party manifesto pledged</a> [PDF] to restore the phase-out date of 2030
&ldquo;for new cars with internal combustion engines&rdquo;.</p>
<p>In 2021 the <a href="https://www.gov.uk/government/publications/transport-decarbonisation-plan">government
said that 2040</a> would be a &lsquo;backstop&rsquo; phase-out date
for new non zero-emission vehicles of all other types, including HGVs and buses.</p>
<h2>Progress on the EV transition</h2>
<p>The market for EVs is small yet growing. Just <a href="https://www.gov.uk/government/statistical-data-sets/vehicle-licensing-statistics-data-tables#all-vehicles:~:text=VEH1103%3A%20Licensed%20vehicles%20at%20the%20end%20of%20the%20quarter%20by%20body%20type%20and%20fuel%20type%3A%20Great%20Britain%20and%20United%20Kingdom%20(ODS%2C%20927%20KB)">3%
of cars (931,000) were battery electric</a> in the UK at the end of 2023, and
7% were hybrid electric (using an electric motor as well as petrol/diesel). Battery
electric cars accounted for <a href="https://www.gov.uk/government/statistical-data-sets/vehicle-licensing-statistics-data-tables#all-vehicles">16%
of all new car registrations</a> in 2023, an increase from 1% in 2018.</p>
<p>In its 2024 inquiry into EV strategy, the <a href="https://publications.parliament.uk/pa/ld5804/ldselect/ldenvcl/51/5103.htm#_idTextAnchor001">House
of Lords Environment and Climate Change Committee said</a> that demand for electric
cars is being constrained due to their upfront cost, inadequate charging infrastructure
and general consumer scepticism.</p>
<h2>Conservative government EV policy 2020-2024</h2>
<p>In January 2024, the government introduced a <a href="https://www.gov.uk/government/news/government-sets-out-path-to-zero-emission-vehicles-by-2035">zero
emission vehicle (ZEV) mandate</a> for car manufacturers. The ZEV mandate is
intended to provide greater certainty to manufacturers, and provide a greater range
of EV options to consumers.</p>
<p>The <a href="https://www.legislation.gov.uk/uksi/2023/1394/contents/made">mandate</a>
specifies the minimum proportion of car manufacturers&rsquo; sales that must be
zero-emission vehicles. This will increase from 22% in 2024 to 80% by 2030, and 100%
in 2035.</p>
<h2>Improving charging infrastructure</h2>
<p>The Conservative government took a range of steps to improve EV charging
infrastructure. There are now a variety of UK-wide <a href="https://www.gov.uk/guidance/electric-vehicle-chargepoint-and-infrastucture-grant-guidance-for-installers#grants-that-are-available-to-your-customers">grant
schemes to support new EV chargepoints</a> outside homes and at workplaces.
In England, <a href="https://www.gov.uk/guidance/apply-for-local-ev-infrastructure-levi-funding">Local
Electric Vehicle Infrastructure (LEVI)</a> funding is available for local authorities.
The Conservative government also planned to open a <a href="https://www.gov.uk/guidance/rapid-charging-fund">Rapid
Charging fund (RCF)</a> to increase provision of chargepoints at motorway service
stations.</p>
<p>In 2021 the government <a href="https://www.legislation.gov.uk/uksi/2010/2214/schedule/1">legislated
to require EV chargepoints to be installed</a> in a range of new build homes
and other buildings. In 2023 it <a href="https://www.legislation.gov.uk/uksi/2023/1168/contents/made">introduced
regulations</a> to improve the <a href="https://www.gov.uk/government/news/new-laws-to-make-charging-an-electric-vehicle-easier-and-quicker">customer
experience of on-street EV charging</a>, including contactless payments. In
2022 the British Standards Institute (BSI) produced a <a href="https://www.bsigroup.com/en-GB/insights-and-media/insights/brochures/pas-1899-electric-vehicles-accessible-charging-specification/">voluntary
specification for the installation of accessible chargepoints</a>, to improve
EV charging for people with disabilities.</p>
<p>The devolved administrations in <a href="https://www.transport.gov.scot/news/vision-for-world-class-public-electric-vehicle-charging-network/">Scotland</a>,
<a href="https://www.gov.wales/electric-vehicle-charging-strategy-and-reports">Wales</a>
and <a href="https://www.infrastructure-ni.gov.uk/publications/electric-vehicle-ev-infrastructure-action-plan">Northern
Ireland</a> also have their own strategies for EV infrastructure.</p>
<h2>UK electric vehicle industry and global competition</h2>
<p>The UK automotive industry has started repurposing production towards EVs,
requiring large investments to upgrade factories and <a href="https://publications.parliament.uk/pa/cm5804/cmselect/cmbeis/196/report.html">increase
domestic battery manufacturing capacity</a>. The Society of Motor Manufacturers
and Traders (SMMT), trade body for the sector, said that &ldquo;more than &pound;20
billion&rdquo; was <a href="https://www.smmt.co.uk/reports/vision-2035/">invested
in zero emission vehicle production in the UK</a> in 2023.</p>
<p>There is global competition to attract investments in the electric vehicle
supply chain. China became the <a href="https://tradecouncil.org/china-surpasses-japan-as-global-vehicle-export-leader-in-2023/">biggest
producer of electric cars in 2023</a> and Chinese exports are expected to increase
further in coming years, putting European and US manufacturers under pressure.</p>
<p>The US has responded with <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/16/fact-sheet-one-year-in-president-bidens-inflation-reduction-act-is-driving-historic-climate-action-and-investing-in-america-to-create-good-paying-jobs-and-reduce-costs/">generous
subsidies to support its domestic industry</a> through the Inflation Reduction
Act and in 2023 <a href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/14/fact-sheet-president-biden-takes-action-to-protect-american-workers-and-businesses-from-chinas-unfair-trade-practices/">imposed
100% tariffs on imports of Chinese EVs</a>. The EU has also introduced <a
href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan_en">measures
to support European manufacturers</a> and in July 2024 announced <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_3630">17-38%
tariffs on EVs from China</a>. The UK has not so far applied tariffs on EV imports.</p>
<p>The government published an <a href="https://www.gov.uk/government/publications/advanced-manufacturing-plan">Advanced
Manufacturing Plan</a> and a <a href="https://www.gov.uk/government/publications/uk-battery-strategy">UK
battery strategy</a> in November 2023 that set out its policy to support UK
industry. With reference to global competition, the government said it would &ldquo;<a
href="https://www.gov.uk/government/publications/advanced-manufacturing-plan/advanced-manufacturing-plan-html-version">not
be drawn into a distortive subsidy battle</a>&rdquo;. The plans focus on
the UK&rsquo;s strengths, such as its R&amp;D sector, and included &pound;2
billion funding for the UK automotive industry.</p>
<h2>EVs and electricity demand</h2>
<p>Increasing the number of EVs will reduce petrol and diesel demand but add
to electricity demand. This could increase pressure on Great Britain&rsquo;s electricity
grid network, operated by <a href="https://www.nationalgrideso.com/">National
Grid Electricity System Operator</a> (ESO). There has previously been concern
about the challenges to the grid, in terms of electrical capacity and grid balancing.</p>
<p>However National Grid ESO has said that although demand for electricity will
increase, <a href="https://www.nationalgrid.com/stories/journey-to-net-zero-stories/can-grid-cope-extra-demand-electric-cars">there
will be a managed transition that will be within the range the grid can handle</a>.</p>
<p>EVs also have the potential to help balance a more flexible and low carbon
grid through developments that allow their batteries to charge at optimum times, <a
href="https://www.nationalgrid.com/stories/journey-to-net-zero/electric-vehicles-myths-misconceptions">known
as &ldquo;smart charging&rdquo;, and to supply electricity in times of high
demand, known as &ldquo;vehicle to grid&rdquo;.</a></p>
<h2>EVs and environmental impact</h2>
<p>The total greenhouse gas emissions from an EV are known as its &ldquo;lifecycle
emissions&rdquo;. These combine the emissions from manufacturing the vehicle (which
tend to be higher than manufacturing internal-combustion vehicles), powering the vehicle
through its life (which tend to be lower than powering internal-combustion vehicles),
and decommissioning the batteries at the end of their life.</p>
<p>Calculations of lifecycle emissions vary based on the methodology and assumptions
used. The International Energy Agency&rsquo;s <a href="https://www.iea.org/data-and-statistics/data-tools/ev-life-cycle-assessment-calculator">lifecycle
emission comparisons</a> calculates that in the UK, a medium sized EV has higher
manufacturing emissions that an internal-combustion engine equivalent, but the lower
emissions from powering the EV mean its cumulative emissions are lower after&nbsp;3
years of use.</p>
<p>There are various other environmental considerations related to EVs, including
the use of <a href="https://researchbriefings.files.parliament.uk/documents/POST-PN-0609/POST-PN-0609.pdf">critical
minerals</a> in batteries, which have challenges with sustainable extraction,
and how best to recycle or reuse batteries.</p>
