EU rules on green transport remain important as UK regulations move slowly

Having recognised the critical need to decarbonise cars and vans in achieving net zero by 2050, the UK government has set an ambitious deadline to end the sale of all new petrol and diesel cars from 2030. However, it has not made much progress in introducing new regulations to support the automobile industry’s transition to sustainable transport.

As we discussed in our recent webinar, the UK electric vehicle (EV) marketplace is still in its early stages – although sales have now outpaced those of diesel cars. The UK is at the beginning of a long transitional journey, in which developments are being driven forward by market forces – commercial structuring and contracts – as opposed to regulation.

One particular barrier to decarbonisation acceleration we have seen is access to the grid and grid infrastructure, to bring more charge points. Much more in the way of subsidies by the government is required to allow this to happen, but the government seems to have put this on hold while it instead debates the role of other alternative fuels such as hydrogen, particularly for large commercial lorries and other heavy vehicles.

Where UK regulation is needed

There are two areas in which regulatory action is particularly needed: around licensing in relation to charge-point operators; and around data sharing and data protection.

On the first point, while selling electricity is a licensed activity in the UK, Ofgem in its role as electricity market regulator has taken the view that if it takes too prescriptive an approach it may prevent the market coming forward to provide the infrastructure and services needed to support EV uptake. Currently, selling power to EV driver does not require a supply licence, according to Ofgem. 

On data, there are questions around information charge point operators can retain in line with GDPR when there is a contact with drivers who are recharging their cars. The government is also trying to support and understand the different segments of the EV data journey, so that it can develop guidance on what ‘good’ and ‘bad’ data sharing models look like.

There is little actual regulation relating to EVs in the UK at the moment. The 2018 Automated and Electric Vehicles Act is one such piece of legislation. Its approach is more about setting out a ‘minded to’ position, letting the market know that we may need some regulations in certain areas.

For example, the Act gives the government the power to introduce new regulations to require large fuel retailers or service station operators to provide, and make available for use at prescribed times, public electric vehicle charging points. Further regulations could also be introduced to stipulate Duty to repair electric vehicle charging points backed by UK law makers, impose a requirement on operators of those charging points to fix faults, and in relation to information that would need to be published by the operators about their charging points, such as their location and operating hours and what the available charging options are.

One of the areas the Act does touch on is public charging. It requires that access to the charging network needs to be made available to the public, and that cost of charging needs to be clear, so people can understand how much it is going to cost them to charge their cars at that charging station. There is also basic information regarding methods of payment. But more rules are needed, such as those that allow interoperability in terms of the ability to charge with different methods beyond contactless payment, and elements around smart charging which need to be addressed to deliver decarbonisation at lowest cost to consumers

One approach the government could take is to prioritise intervention in the micro mobility space – around e-bikes and e-scooters – due to potential nuisance concerns of non-dockless bikes being inappropriately left in the street.

Compliance with EU regulations remains key

Despite Brexit, the stream of new EU directives around sustainable transport should still be viewed as an important part of the regulatory environment in which the UK industry operates. These will have an impact on UK businesses, particularly for compliance purposes if the UK is to continue to compete in these markets – for example, requirements around battery recycling and the supply chain sustainability directive.

Indeed, there is an increasingly wide spread of EU directives and regulation in every field of mobility thanks to the European Green Deal, a package of package of policy initiatives that aims to lead the EU to climate neutrality by 2050. There are regulations over fuels, fuel infrastructure, clean vehicles, technical specifications and consumer rights, which provide a useful model to inform other countries’ regulatory approaches.