Logistics UK: ZEV mandate ambition must be matched by action

With the government announcing in its Autumn Budget a commitment to publish its response to the Zero Emission Vehicle (ZEV) Mandate Review consultation by the end of 2026, business group Logistics UK is urging ministers to create an operational environment that will make electrification commercially viable and achievable for the logistics sector.

Responding to the government’s consultation on the future trajectory of the ZEV Mandate for vans, Logistics UK reiterates how the sector fully supports decarbonisation and the transition to zero-emission vehicles but outlines how policy ambition must be matched by delivery.

“The logistics sector is committed to decarbonisation, and businesses are already investing significantly in electric vehicles and charging infrastructure, but government policy must reflect operational reality,” commented Logistics UK’s Chief Executive Ben Fletcher. “The electrification transition needs to start from the ground up to give businesses the confidence and practical means to invest in zero-emission fleets without compromising their competitiveness.”

Logistics UK’s submission highlights growing concerns from logistics operators and urges government to prioritise faster and more affordable grid connections for logistics sites; maintain meaningful, multi-year grants for zero-emission vans; improve accountability among distribution network operators (DNOs); expand high-powered charging infrastructure suitable for commercial vehicles and address the UK’s high cost of electricity – since 2020, UK industrial electricity prices in the UK have been the most expensive in the G7¹.

“Electrifying domestic vehicles is a very different challenge to electrifying the logistics network of depots and distribution centres that keep the country supplied, and policy goals must recognise the different pace of decarbonisation. Logistics operators need to consider vehicle range, payload and overall customer needs, and for many businesses, particularly those with larger vans or in rural areas, conditions are not yet commercially viable. With logistics businesses operating on tight margins, the transition needs to be supported by a clear and realistic policy framework that reflects the operational challenges facing the sector.

“The challenge is not a lack of ambition from industry,” continues Fletcher, “but it is the lack of charging infrastructure, grid capacity and affordable electricity that is inhibiting the adoption of greener electric fleets. Where electrification is mandated, government must ensure logistics businesses are prioritised for electricity access and grid upgrades.

“Decarbonising logistics is fundamental to the decarbonisation of all sectors, and the success of the ZEV Mandate will ultimately depend on creating the conditions that make zero-emission vehicles practical, affordable and attractive for the businesses expected to buy them.”

Business group Logistics UK champions the logistics sector, the backbone of the UK economy and global trade, providing a unique, authoritative voice for its members. As the only trade association representing the whole industry, it supports more than 22,000 members, operating in road, rail, waterways, sea and air freight, in ports, airports and warehousing, as well as the customers of freight services such as retailers and manufacturers. The group delivers industry representation, services and thought leadership to support a sector that is critical to economic growth, employing 8% of the UK workforce, contributing £175 billion in annual GVA and enabling over £1 trillion of international trade. For more information about the organisation and its work, please visit logistics.org.uk