Motoring experts are warning that jobs could be on the line if strict electric car targets are watered down by officials.
Experts from four leading EV bodies, BEAMA, ChargeUK, REA and UKSIF said the Government should not cave to “short-sighted demands”.
It comes after the Government suggested they would launch a fast-track consultation to change rules around the Zero Emissions Vehicle (ZEV) mandate.
The policy mandates how many electric vehicles manufacturers must produce per year with the current target set at 22% of output.
Under current rules, firms face heavy fines for not meeting the target unless they buy credits from other businesses.
This is causing many brands to heavily discount EVs and sell them for less profit in a bid to meet the target.
A change could be made after Labour met with many industry leaders with the Society of Motor Manufacturers and Traders (SMMT) also calling for new rules.
The SMMT warned that the Mandate had cost the industry around £6billion this year due to fines, credit swaps and discounts.
However, the four experts have claimed that weakening the current ZEV Mandate targets will delay the decarbonisation of transport and may threaten investment and jobs in the sector.
James Alexander, CEO of the UK Sustainable Investment and Finance Association (UKSIF) stressed investors would only allocate funds to the sector if they have “long-term confidence”.
He said: “Investors have made significant investments into EVs and charging infrastructure based on the ZEV mandate and the long-term confidence it gave them.
“Policy wavering risks undermining that confidence, which would be very hard to recover from.
“Meanwhile the lack of a long-term sector decarbonisation plan for UK transport is stalling further private investment and risks widening the gap between our emissions targets and our trajectory.”
Last month, Vauxhall revealed plans to shut its Luton plant with 1,100 jobs now at risk.
The business directly admitted that ZEV mandate rules were a key factor in the decision to axe the production centre.
The move led Labour’s Business Secretary Jonathan Reynolds to admit he was “profoundly concerned about ZEV Mandate rules.
Trevor Hutchings, CEO of the Association for Renewable Energy & Clean Technology (REA) warned the UK was in a “race” to secure extra funding for EV projects.
He added: “The government will not achieve its legally binding net zero targets without decarbonising transport. Electric vehicles are essential to this so watering down sales targets would be an own goal.
“It would also put at risk investment and jobs at the very time when we’re in a global race to secure manufacturing in these technologies.”
