By relaxing its ZEV mandate, the UK risks creating a two-tier car market where it becomes a dumping ground for petrol cars that are harder to sell in more stringently regulated regions like the EU or California.
Carmakers, including BMW, successfully argued that the UK’s original mandate was “much more radical” than rules elsewhere. In response, the government made the UK’s rules less demanding. This creates a powerful incentive for global car companies to allocate a higher percentage of their remaining internal combustion engine (ICE) vehicles to the UK market.
This could lead to a situation where UK consumers have ample choice of petrol cars, while the latest and most affordable EV models are prioritised for markets with tougher regulations and stronger incentives. This would not only slow decarbonisation but could also mean British drivers miss out on the rapid technological advances in the EV sector.
Environmentalists warn that this is the real danger of regulatory divergence post-Brexit. Instead of creating a competitive advantage, a race to the bottom on environmental standards could leave the UK with older, more polluting technology and a less competitive long-term industrial base.