ZEV Mandate ambition must be matched by action
Logistics UK is calling on ministers to create the right operating conditions for fleet electrification as the government prepares to respond to its Zero Emission Vehicle (ZEV) Mandate Review.
The Autumn Budget confirmed that the government will publish its response to the consultation by the end of 2026. The business group wants that response to make electric vans a practical and affordable choice for the logistics sector.
The ZEV Mandate requires manufacturers to sell a growing share of zero-emission vehicles each year. Logistics UK has now responded to the government’s consultation on the future trajectory of the mandate for vans. The organisation says the sector fully supports decarbonisation and the move to zero-emission vehicles. However, it stresses that policy ambition must be matched by delivery.
Ben Fletcher, Chief Executive of Logistics UK, said: “The logistics sector is committed to decarbonisation, and businesses are already investing significantly in electric vehicles and charging infrastructure, but government policy must reflect operational reality. The electrification transition needs to start from the ground up to give businesses the confidence and practical means to invest in zero-emission fleets without compromising their competitiveness.”
What Logistics UK wants from the ZEV Mandate Review
The Logistics UK submission highlights growing concerns among logistics operators. It asks the government to prioritise faster and more affordable grid connections for logistics sites. It also wants ministers to maintain meaningful, multi-year grants for zero-emission vans and to hold distribution network operators (DNOs) to account. In addition, Logistics UK calls for more high-powered charging infrastructure suitable for commercial vehicles.
The cost of electricity is another major barrier. Since 2020, industrial electricity prices in the UK have been the most expensive in the G7. For fleet operators planning to charge at depots, that cost has a direct impact on the business case for switching.
Fletcher believes policymakers must recognise that logistics operates very differently from the domestic market. “Electrifying domestic vehicles is a very different challenge to electrifying the logistics network of depots and distribution centres that keep the country supplied, and policy goals must recognise the different pace of decarbonisation. Logistics operators need to consider vehicle range, payload and overall customer needs, and for many businesses, particularly those with larger vans or in rural areas, conditions are not yet commercially viable. With logistics businesses operating on tight margins, the transition needs to be supported by a clear and realistic policy framework that reflects the operational challenges facing the sector.”
He also rejects the idea that industry is holding back. “The challenge is not a lack of ambition from industry,” continues Fletcher, “but it is the lack of charging infrastructure, grid capacity and affordable electricity that is inhibiting the adoption of greener electric fleets. Where electrification is mandated, government must ensure logistics businesses are prioritised for electricity access and grid upgrades.”
Fletcher concludes by stressing how much rests on getting the policy right. “Decarbonising logistics is fundamental to the decarbonisation of all sectors, and the success of the ZEV Mandate will ultimately depend on creating the conditions that make zero-emission vehicles practical, affordable and attractive for the businesses expected to buy them.”
Fleet managers will now look to the government’s response for clarity on the van trajectory. Many will want to see whether support for grid access, charging and energy costs keeps pace with the targets set for their vehicles.
