UK pension funds warn against weakening EV targets

Originally written and published by Solar & Storage Xtra

Major pension funds have cautioned the UK Government that any dilution of electric vehicle (EV) sales targets could harm investment confidence and disrupt progress on net zero initiatives.

Fund managers, including Macquarie, M&G, Aviva, and Schroders, have invested significantly in EV charging infrastructure, relying on the Zero Emission Vehicle (ZEV) mandate to drive EV adoption.

The ZEV mandate requires 22% of car sales to be electric this year, increasing to 80% by 2030.

Reports suggest the Government may relax these targets to ease pressure on carmakers, who argue the goals are misaligned with consumer demand.

Louise Haigh, the Transport Secretary, recently met Nissan, while further discussions with the auto industry are scheduled this week.

James Alexander, CEO of the UK Sustainable Investment and Finance Association, warned: “Investments in projects such as battery factories are highly sensitive to the policy environment and can be easily jeopardised by sudden policy U-turns.

“The ZEV mandate currently underpins billions of investment in the UK’s automotive sector. Investors need certainty, not shifting sands.”

Critics argue policy changes could undermine confidence in green technologies, including wind farms and carbon capture. Companies such as Ovo, SSE, and Octopus Energy have urged the Government to maintain stability.

Fiona Howarth, CEO of Octopus Electric Vehicles, said: “The ZEV mandate is doing what it’s supposed to – providing stability and boosting electric car adoption. Scrapping it would be a huge mistake.”

Carmakers, including Stellantis and Jaguar Land Rover, have lobbied for relaxed rules, citing slower-than-expected demand and potential financial losses.

Nissan reaffirmed its commitment to net zero but called for adjustments to reflect market realities.