Enforcement, Sanctions and Monitoring

Vehicle manufacturers may achieve annual compliance (i.e., cover all of their activity) through a combination of in-year allowances, banked or borrowed allowances, credits earnt for the sale of zero emission special purpose vehicles or ZEVs sold to car clubs, and allowances purchased through trading. If the manufacturer is still unable to meet compliance for the trading period through all of those means, they must make a payment to government proportionate to the amount of activity not covered by allowances or credits. These will be £15,000 per car ZEV allowance in the ZEV mandate. For vans, payments are reduced to £9,000 in 2024 only, rising to £18,000 for the rest of the proposals timeframe.

Vehicle Manufacturers who do not meet annual targets for the average CO2 emissions standards of their non-ZEV car or van schemes and do not purchase allowances from other manufacturers to offset any shortfall must make a payment of £86 per gram (or fraction of a gram) of CO2 above the manufacturer’s target multiplied by the number of non-ZEV cars or vans sold.