ZEV Mandate Q&A
A Zero Emission Vehicle (ZEV) Mandate is a policy framework which sets ZEV sales targets for manufacturers to reach, they can do this by earning credits through the sale of ZEVs or by utilising a flexibility in the scheme.
EXCERPT
A Zero Emission Vehicle (ZEV) Mandate is a policy framework which sets ZEV sales targets for manufacturers to reach, they can do this by earning credits through the sale of ZEVs or by utilising a flexibility in the scheme. If these targets are not achieved, manufacturers receive a fine. Credit targets are set as a percentage proportion of the company's total car sales. Manufacturers that exceed their annual credit target may sell surplus credits to competitors, or count these credits towards their next annual target.
A ZEV Mandate is essentially a trading scheme. If a manufacturer does not reach its target it can utilise a flexibility in the scheme, which includes: Banking, Borrowing, Trading, Pooling, and Buying Out.
Download the report to find out about how the scheme works, as well as its intended effects.
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