Scoop: Transport & Environment lobbied for hybrid flexibility
Europe's biggest green transport NGO used its ZEV Mandate response to push a softer approach to hybrids
Hello, I’m Tom Riley, and welcome back to The Fast Charge, a British EV newsletter.
Today’s top story… I can reveal the climate group Transport & Environment privately lobbied the UK to soften the definition of hybrids being sold after 2030, despite publicly calling for tough action on ICE vehicles by 2030. Full story below.
Further down… BMW reverses on Oxford plans, free VIP tickets to Everything Electric, and Omoda sets up a showroom in Tesla’s old HQ.
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Exclusive: Green NGO Transport & Environment called for softer definition of a hybrid
Headline: One of Europe’s largest and most influential climate groups, Transport and Environment (T&E), used its response to the latest ZEV mandate consultation to say, “The government should not trade off the near term ambition of the ZEV mandate in order to restrict sales to only PHEV and HEV after 2030” in a submission that has been criticised by their stakeholders for leaving the door open to allowing ICE technology, such as mild hybrid vehicles, to remain on sale after 2030.
What? Tell me more… Over the past week, The Fast Charge has obtained both T&E’s original draft response and their final submission to the government. While T&E strongly supports the UK maintaining robust targets under its ZEV mandate, their final submission advocates for a non-specific definition of a hybrid. In several areas, it leaves open the possibility of mild hybrid electric vehicle (MHEV) technology being allowed to remain, out of T&E’s concern for a lack of small, affordable car options for drivers. This goes against the government’s proposal of limiting EV models after 2030 to only plug-in hybrids (PHEVs) or full hybrids (HEVs).
Reminder: What is a ‘MHEV’? MHEVs are internal combustion cars that cannot run on a battery alone, so they always require the engine on. To many climate campaigners, allowing MHEVs after 2030 is akin to allowing combustion engines to remain. In fact, even the Society of Motor Manufacturers and Traders counts MHEVs within its existing petrol and diesel registrations. This probably says all you need about how environmentally friendly they are.
Why would T&E split like this? In their submitted evidence, it’s clear that T&E is concerned that there won’t be enough PHEVs and HEVs models on the market, and that the carmakers should be focussing on investment into pure EVs. Because of the lack of choice in this segment too, T&E warns in its submission that drivers may be pushed towards larger vehicles. This is not a new position for T&E. In a briefing last year, they wrote that “selling more efficient petrol cars (or fewer SUVs) helps as much as selling electrics”.
However… While I’m very sympathetic to that view on SUVs, it does feel like T&E is giving too much ground to combustion here given its mission for transport decarbonisation. I’d expect some other groups or carmakers to use arguments like “OEMs have not hybridized—and are largely not currently planning to hybridize beyond MHEV—the smallest, cheapest vehicles in their model lineups." But I am surprised to see it being pushed by a group that only recently was promoting how car manufacturers did hit the ZEV mandate in 2024 “despite all the complaints”. The position also seems to ignore the fact that there is a fast-growing number of new small EV models available (or on the way).
Additionally… Has T&E forgotten the mandate only relates to new vehicle sales, many EVs (and even PHEVs) will be in the used market during those five years up to 2035.
In T&E’s first draft response, their position was even starker than the final version. It said; “It is T&E’s recommendation for the market to not be limited to only PHEV and HEV sales between 2030 and 2035.” Only after, I understand, very robust stakeholder feedback did T&E tone down their language which ended up in their final submission that went to the government.
From my understanding… T&E has advocated this view because they’ve genuinely been worried that the ZEV targets could be changed. They believe that offering up a middle ground may in turn help officials, especially as they feel this approach - and even allowing MHEVs - would not impact the greater mission of long-term transport decarbonisation.
Based on exchanges I’ve had with T&E… I think they are aware their policy position will be seen as controversial. When I first approached the group last week asking about their position on the mandate, a spokesperson told me: “T&E’s preference is to focus on policies which drive the uptake of zero-emission vehicles, including maintaining the ambition of the ZEV mandate up to 2030. However, if and when the government decides to take this initiative forward they could limit the market to HEV and PHEV sales.”
That aligned with their submission response. However, noticeably was vague on the specificness about which hybrids. I pushed for clarification on whether they supported reinstating the ban on ICE cars from 2030. A spokesperson clarified, “T&E supports reinstating the phase out of pure ICE sales. However, it is crucial that this progress is not undermined elsewhere. The government must not give with one hand and take with the other—this should not come at the expense of ZEV ambition in the 2020s.”
To me… Their public and private direction is misaligned. As T&E is ultimately a Europe-wide NGO, I wonder if their view is being driven by developments in the EU which are then being retrofitted to Britain.
See T&E’s final response to the UK government on defining a hybrid below…
What could the impact of T&E taking this position be? Three quick thoughts…
Firstly, their credibility… T&E’s response may undermine its fairly excellent record in advocating for clean transport. I’m sure there might be quite a few perplexed readers today, I certainly was surprised. How can a group that is happy to publicly call out “powerful companies like Airbus” for not taking seriously “climate innovation”, when at the same time this submission will allow lagging carmakers a chance to profit from existing models with minimal, err, climate innovation? Meanwhile, that extra flexibility to the mandate could put billions of investment cases in net zero businesses at risk. Surely T&E is an NGO that should be fighting to the end, not caving first?
Secondly, carmaker relief… While eco folk may be frustrated, I’m sure the car lobby will be pleased to see this approach considered. It’s probably quite refreshing for certain carmakers to see the argument from what is often viewed as a group of ex-Greenpeace supporters. Albeit, where T&E is arguing manufacturers won’t be offering the right hybrids at the right prices, they may disagree with T&E, as in recent weeks there have been numerous reports of carmakers, including BMW and Mercedes, already investing heavily in those areas. Furthermore, while T&E dislikes SUVs, changes to the ZEV mandate are not the right solution. It won’t defer carmakers looking at, literally, pursuing the widest profit margins.
Lastly, Whitehall… As above, T&E is a respected climate voice. And that makes their submission worrying. Because whereas over recent months the battle over how to define hybrids has always divided between whether you are a carmaker or not, T&E’s position has muddied the water. They have effectively split from the People's Front of Decarbonisation. And that might be the beginning of officials and ministers feeling more comfortable easing up the rules or aligning with other countries, rather than proceeding with a separate UK path. At the very least, given they’ve put this forward, officials won’t brush past it.
Final word? T&E told me they had no comment to add but reconfirmed their final submission is their position.
Other quick news…
🏭 BMW Group has seemingly pressed pause on a £600m investment into a Mini car assembly plant on the outskirts of Oxford citing market uncertainty. The announcement was originally made by BMW with Kemi Badenoch. Read more.
🎟️ If you would like free VIP tickets to attend Everything Electric in London during April as a guest of Electric Vehicles UK, please email here (click). Or, to exhibit or sponsor, email here (click). I’m going to be attending!
🤑 Yesterday, the Department for Transport confirmed it was extending the plug-in van grant for another year, to help van drivers and businesses transition to zero emission vehicles. The plug-in wheelchair accessible vehicle grant cap is also being increased from £35,000 to £50,000. Read more.
🚙 The first UK dealership selling the Chinese brands Omoda and Jaecoo is opening in Chiswick at the Hogarth roundabout. It’s going to be on the same site where Tesla was formally headquartered in the UK - and briefly was used as a drug den! The new dealer group running the show is called Auto West London. The team has been filming promotions ahead of sales starting in Spring.
⛽️ Last week BP launched a new EV charging hub in Hammersmith which is based on the site of one of their former fuel stations. The site on Cromwell Road has five 300kW chargers with canopies overhead and many food options. Read more.
🌳 The UK’s Climate Change Committee launched its 7th Carbon Budget report today. EVs get a big and positive appearance. Read more.
💸 Figures across the EV industry are getting increasingly concerned as April approaches because it will see EVs get caught under the Expensive Car Supplement. Expect to hear more on this.
🛠️ The new boss of Aston Martin has pledged to build more hybrid models as it seeks to bring the British sportscar brand back to life. Read more.
📉 One of the original home charger brands, Myenergi, was soaring a few years ago, though their most recent accounts have seen big losses as the market has become more saturated. Last year (and still going) they are cutting jobs, co-founder Jordan Brompton recently stepped down, and a new CEO is in place. Read more.
🤖 An interesting report released this month by Monumo, a deeptech engineering company, with insights from McKinsey, looked at how AI will become increasingly important to the automotive sector. See here.
📊 Shares in electric car maker Tesla have slumped more than 9% after EU and UK sales fell by almost half in January. Yikes, that’ll be the Musk effect. Read more.
💡 Ofgem revealed yesterday the price cap on gas and electricity charges would rise by £111 from April to an average of £1,849 a year for a typical household after a surge in energy market prices. Read more.
Hello - the Everything Electric link does not seem to be working. Could I please avail of this offer? Thank you!