My Lords, this Order in Council amends the Vehicle Emissions Trading Schemes Order 2023, which implements the zero-emission vehicle mandate and carbon dioxide emissions targets for new cars and vans with the purpose of facilitating the Northern Ireland Assembly’s decision that Northern Ireland should join the scheme and also makes technical updates. In doing so, the amendment brings Northern Ireland into alignment with the rest of the United Kingdom and represents an important milestone on the pathway for the United Kingdom to achieve 100% zero-emission new cars and vans by 2035 and net zero by 2050.
Domestic transport is the largest contributor of greenhouse gas emissions, accounting for nearly 28% of all emissions in the UK. Analysis of the vehicle emissions trading schemes projects emissions reductions of approximately 411 million tonnes of carbon dioxide equivalents out to 2050, with a further 9 million should Northern Ireland join. This is the single largest carbon-saving measure in government and is of singular importance if we are to meet our climate commitments.
These measures are also critical for kick-starting economic growth not just in Northern Ireland but across the UK by giving businesses the certainty they need to invest in the transition to zero-emission vehicles. Some £6 billion of private investment has already been committed by the charging infrastructure industry, and the Government are working closely with the entire vehicle industry to deliver a green future for one of the UK’s most important manufacturing sectors.
As noble Lords may recall from the debate in your Lordships’ House on the original instrument last year, the ZEV mandate sets headline targets for the registration of zero-emission cars and vans. This includes battery electric or hydrogen-powered cars and vans. It also sets carbon dioxide emissions targets requiring that vehicle manufacturers’ emissions get no worse on average than they were in 2021.
A variety of flexibilities is included in the legislation to ensure that every vehicle manufacturer has a viable pathway to meeting the targets during the first few years. For example, overcompliance against the carbon dioxide targets may be used against the ZEV targets, meaning that manufacturers that deliver carbon dioxide efficiencies can deliver fewer zero-emission vehicles than the headline ZEV target.
When this policy was originally consulted on, a remarkable 96% of respondents preferred UK-wide implementation. However, at the time that this legislation was laid in autumn 2023, it was possible for it to apply in Wales, England and Scotland only. This is because of a specific requirement in the power used to create the original legislation—paragraph 11 of Schedule 3 to the Climate Change Act 2008—which means that the order cannot apply unless the statutory instrument creating the schemes has been laid before and approved by affirmative resolution of the relevant devolved legislatures.