UK Supply Chain back in race to Net Zero

Priorities for the new Government to set a framework for growth and investment

BEAMA is the UK trade association for energy infrastructure and systems. We represent over 200 manufacturers across the full supply chain for electrical products for the energy industry, from transmission and distribution equipment to electrical infrastructure and service technologies in the built environment. We are the leading trade association providing representation for the manufacturers of the full range of Electric Vehicle Charging equipment and operational infrastructure required to meet UK Net Zero targets. We identify this sector as a key growth opportunity in the overall UK electrical manufacturing industry.

We already have a strong supply chain in the UK for the Electric Vehicle Infrastructure market. Not just electric vehicle charging stations but the whole supply chain - transformers, substation equipment, and battery energy storage systems. Setting conditions for investment in this sector is a necessary step in enabling progress towards Net Zero in the UK. We are in a global race to build capacity in manufacturing and supply of equipment for electrification needs and the UK has a great opportunity to capture much of this at home, while also building strong relationships with supply chains globally.

We recently published our position on the future of the EV market, specifically outlining key priorities for our new Government. Broadly this calls for regulatory stability with ambitious targets to incentivise growth. The previous changes in Government targets had a significant impact on the supply chain and the overall market progress towards electrification. We now need to get back on track and set a clear market strategy that will enable a strong UK supply chain to be built.

We call for our new Government to establish market stability and certainty as we ramp up deployment and demand for electrified transport through targeted action on the following:

  • Maintain the current commitment to the ZEV mandate and reinstate the original 2030 ZEV target.
  • Maintain current VAT relief and grants for Electric Vehicle Sales Company car tax for EVs at 2%.
  • Align VAT for public charging with the current VAT for domestic charging (5%).
  • Keep the revisions to the EV Smart Charging Regulation 2021 on track, tackling shortcomings with the current framework and creating minimal disruption.
  • Continue to expand and roll out the LEVI fund for local authority charging infrastructure and the Zero Emission Bus Regional Areas (ZEBRA) scheme.
  • Ensure that action is taken to speed up network connections and remove legislative barriers to public charge point construction, including current land access restraints.
  • Ensuring inclusivity of public charging infrastructure – prioritise progress on PAS 1899 – Inclusivity specification – and agreement on how this will be applied in the market.
  • Accelerate the UK's technical standards development to keep pace with technological advancements, especially in Vehicle-to-Grid applications. While progress is notable, the development of standards must match this speed. BEAMA, holding the UK chair position on the BSI EV Standards Committee, seeks strong Government support and active industry involvement to maintain momentum and ensure swift progress.
  • The wider decisions Labour now take on how to reform the overall energy market will influence the take up of electric transport as we need to establish clear market signals for electrification of heat and transport. The electricity price review and levy rebalancing will be central to this, establishing the long-term market pull for electrification and demonstrating the UK is a market for growth in this sector.
  • Enabling the transition to smarter energy management is key, this includes ensuring a complete Smart Metering network enabling access to off peak charging, aswell as progress with the Government's SESS (Smart Secure Electricity Systems) program.
  • Clear and concise guidance to support consumers when opting to switch to electric transport is essential. The window of opportunity is limited and consumers need honest guidance on what could been seen as a complicated switch.

We have a new Government, with renewed opportunities to set the market framework and hit our Net Zero targets. We want to get back in the race to Net Zero and BEAMA is privileged to be working with the new Government, on behalf of its members, to progress work on developing this strategy.

"The journey to Net Zero is a once in a lifetime opportunity to save the planet for future generations. The electrification of the transport system represents a key milestone on that journey. Therefore, it is vitally important that industry and government work together closely to ensure that targets are set, incentives laid so that infrastructure, products and services are delivered to business and domestic users. I'm keen to see an ambitious plan laid out for targets but backed up with a clear strategy for incentives and technical regulation." Richard Earl, Director of Research and Development, EO Charging and BEAMA Electric Transport Systems group chair

The Zemo Partnership Summit "Our Journey to a Delivery Roadmap for Net Zero Transport" on 3rd October 2024 in London will explore how the Partnership and its members will work with the new Council for Net Zero Transport to develop a delivery roadmap for net zero transport to inform and guide the policies of the new Westminster Government. Find out more, book your place and find out more about sponsorship opportunities here: https://www.zemo.org.uk/news-events/zemo-partnership-summit-2024.htm

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