What COP30 Means for the UK's Net Zero Transport Goals
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COP30, the 30th annual UN Climate Change Conference taking place in November 2025 in Belém, Brazil, comes at a pivotal time for climate action. Globally, momentum is building to accelerate emissions cuts, especially in the transport sector.
Transport accounts for about 23% of worldwide energy-related CO₂ emissions, and cutting these by roughly 25% by 2030 is seen as essential to meet Paris Agreement targets. At COP30, governments and businesses alike are reinforcing their commitments: one notable initiative is a new Zero-Emission Vehicle (ZEV) coalition in Europe aimed at speeding up electric vehicle deployment and charging infrastructure expansion.
Against this international backdrop, the United Kingdom faces its own challenge and opportunity to sharpen its focus on decarbonising transport in order to hit its net zero targets. This blog post explores what COP30's outcomes could mean for the UK's net zero goals in transport and electric vehicles (EVs), and how innovations like salary sacrifice schemes for EVs and charging can help bridge the gap.
UK Net Zero Targets and the Role of EVs
The UK has set legally binding emissions targets that align with global climate ambition. Under its Nationally Determined Contributions (NDCs), the UK aims to reduce greenhouse gas emissions by 68% by 2030 (relative to 1990 levels) and by 81% by 2035, on the path to net zero by 2050.
Transport is the single largest emitting sector of the UK economy today, so achieving these targets will hinge on a rapid shift to cleaner vehicles and fuels. In fact, the Climate Change Committee (CCC) projects that surface transport alone must deliver nearly 30% of the emissions reductions needed between now and 2030. This means millions more zero-emission cars, vans, buses and trucks on the road within this decade.
Fortunately, the transition to electric vehicles is already well underway. EV uptake in the UK has been accelerating, with battery-electric cars comprising about 22% of new cars sold as of September 2025. There are now over 1.7 million EVs on UK roads, almost double the number just two years ago. Government policy has reinforced this trend. The UK's Zero Emission Vehicle (ZEV) mandate, announced in 2023, requires 33% of new car sales to be zero-emission in 2026, ramping up to 80% by 2030 and 100% by 2035.
This effectively sets 2035 as the end date for new petrol and diesel car sales, a timeline aligned with many other major economies after a recent 5-year deadline extension. The mandate provides a clear trajectory for manufacturers and helps signal long-term demand for EVs, even as the government also invests in charging infrastructure (public chargepoints in the UK increased 23% year-on-year, reaching about 86,000 devices in Q3 2025).
Despite this progress, the CCC warns that the pace of change must further accelerate. Emissions cuts from electric vehicles have roughly doubled every two years recently, but strong, consistent policies are needed to maintain this momentum towards 2030. COP30 is expected to reinforce international pressure for such consistency and ambition. For the UK, COP30 is a moment to recommit to its clean transport goals and announce additional measures to ensure those ZEV sales targets and emission cuts are met. This could involve expanding incentives for EV adoption, strengthening charging networks, and addressing any policy gaps.
One area of focus is how to make EVs affordable and accessible to as broad a population as possible. While EV prices have been trending down, the upfront cost of new electric cars can still be a barrier for many drivers. The UK already uses tax policy to bridge this gap – notably through very low Benefit-in-Kind (BiK) tax rates, which are locked in until at least April 2030 to provide buyers with certainty. Building on this, one of the most effective mechanisms to boost EV adoption in recent years has been the rise of electric car salary sacrifice schemes.
Salary Sacrifice: Driving EV Adoption Through Affordability
Salary sacrifice schemes have emerged as a key tool to accelerate EV uptake in the UK. In essence, these programmes allow an employee to lease a new electric car through their employer and pay the lease out of their gross salary, before tax.
This means the employee saves on income tax and National Insurance, typically reducing the effective cost of the EV by 20% to 50% compared to a normal post-tax lease or loan. The employer, on the other hand, benefits from reduced National Insurance contributions and can offer a sought-after green benefit at no direct cost. By tackling the price barrier in this way, salary sacrifice makes electric cars an affordable option for everyone.
The impact has been dramatic. According to industry data, employees with access to an EV salary sacrifice scheme are almost four times more likely to switch to an electric car than those without. This fourfold increase in uptake demonstrates how powerful removing cost hurdles can be for accelerating the transition. In practice, an electric car salary sacrifice scheme leverages the UK's favourable BiK tax (currently 3% on zero-emission cars) so that an employee gets a brand-new EV, with insurance and maintenance included, for a fraction of the usual cost.
For example, a typical electric car with a list price that works out to around £584 per month on a standard lease might cost an employee closer to £390 per month through salary sacrifice if they pay a higher rate of tax. These savings are possible because the gross salary reduction and low BiK tax significantly lower the net deduction from the employee's paycheck. The result is that driving electric becomes not only cleaner but also cheaper than the petrol or diesel alternative in many cases, a clear win for uptake.
The Electric Car Scheme is one of the leading providers of EV salary sacrifice in the UK, and it has been purpose-built to make the transition to electric driving easy for both employers and employees. The company's mission is "making net zero the obvious choice", and it does so by breaking down cost and complexity barriers. By handling all aspects of the car lease (from sourcing vehicles at the best market rates to including maintenance, breakdown cover, and even home charger installation as an option), providers like The Electric Car Scheme simplify the switch to EVs for consumers. Employees can choose from a wide range of new or used electric models and typically get their car delivered within a few weeks.
From an employer's perspective, implementing the scheme is straightforward and cost-neutral. There are no setup fees or ongoing costs for the company electric car scheme, and comprehensive protections are in place as well. For instance, The Electric Car Scheme offers Complete Employer Protection from day one, covering scenarios like an employee leaving or a car needing early return, so that the business isn't left with unwanted costs.
In short, salary sacrifice has proven to be a "win-win" mechanism that aligns with the UK's net-zero transport goals. It creates an incentive for rapid EV adoption by making the cleaner choice also the financially sensible choice for individuals. Meanwhile, it helps employers contribute to sustainability targets (reducing fleet emissions helps cut Scope 3 emissions for companies) and support their staff during a time of rising fuel costs and environmental awareness. As Thom Groot, CEO and Co-founder of The Electric Car Scheme, has noted:
"By making new EVs more accessible, we're not just helping individuals — we're creating a ripple effect that speeds up the entire transition to net zero."
The Charge Scheme – Cutting EV Charging Costs for All Drivers
While electric cars are far cheaper to run per mile than fossil-fuelled cars, not all drivers have equal access to those savings. About 32–33% of UK households (roughly 9 million homes) do not have a private driveway or off-street parking, meaning a large share of motorists cannot install a home charger for convenient overnight charging.
Drivers without home charging often rely on public or workplace chargers, which can cost significantly more per unit of electricity than the cheapest home energy tariffs. This has created a "charging divide", where those without off-street parking end up paying more to charge their EV, potentially undermining the total cost advantages of going electric.
To address this inequity, The Electric Car Scheme introduced The Charge Scheme, an industry-first solution that allows employees to salary sacrifice their EV charging costs in the same way they can sacrifice an electric car. In practice, this means an employee can pay for their vehicle's charging, whether that's charging at home, at the workplace, or on public networks, out of their gross salary, reaping the same tax savings of 20–50% on those expenses.
In effect, The Charge Scheme can make charging 20% cheaper (on average) for a basic-rate taxpayer, and up to 50% cheaper for higher-rate taxpayers, neutralising much of the cost gap faced by those who must use public chargers. This is a practical solution to one of the "biggest running costs of EV ownership". It ensures that EVs remain cost-effective for all drivers, not just those who can plug in at home.
It's worth noting how this innovative approach supports broader UK infrastructure goals. The government's target is to roll out 300,000 public chargepoints by 2030 to support the EV transition. As this public charging network expands, schemes to make charging cheaper will complement the infrastructure by boosting utilisation and confidence.
For employers, enabling staff to salary sacrifice EV charging is another way to promote sustainability in the workplace. Overall, the approach helps ensure no one is left behind in the EV transition due to a lack of home charging, a critical consideration if electric mobility is to become truly mainstream in the run-up to 2030.
COP30 discussions globally have highlighted that decarbonising transport isn't just about vehicle adoption, but also about infrastructure and access. Bridging gaps like the charging divide is exactly the kind of practical step needed to achieve equitable, economy-wide decarbonisation.
Benefits for Employers and Employees
Salary sacrifice for EVs has gained popularity not just because it supports national climate objectives, but also because it delivers tangible benefits to both employers and employees. It's important to understand these advantages from each perspective:
Benefits for Employees
For individual employees, an electric car salary sacrifice scheme can dramatically lower the cost of driving a new electric car. As noted, employees typically save between 20% and 50% compared to a conventional lease or loan. These savings come from income tax and National Insurance reductions combined with the government's low company car tax on EVs.
The package is fully inclusive, covering maintenance, servicing, road tax, breakdown cover and often comprehensive insurance. That makes ownership hassle-free and predictable.
On top of that, The Charge Scheme further reduces running costs by cutting charging bills up to half, which is especially helpful amid high energy prices. In short, employees get access to a brand-new, environmentally friendly car at a budget-friendly cost, with minimal admin and no upfront payment, a compelling proposition.
Benefits for Employers
For employers, offering a green car scheme via salary sacrifice is a cost-effective way to boost staff benefits and contribute to corporate sustainability goals. There is no financial cost to the employer to set up or run the scheme.
The Electric Car Scheme handles implementation and administration is designed to be simple with payroll integration and reporting tools. In fact, companies save money through reduced employer National Insurance contributions. On average, a participating business can save around £56,000 per year in NICs due to employees taking part in the scheme. Additionally, the scheme comes with safeguards such that if an employee leaves or an EV lease ends early, the employer isn't left carrying the liability. Beyond the financial aspects, employers benefit from the ESG (Environmental, Social, and Governance) impact.
Helping employees switch to EVs directly cuts tailpipe emissions, contributing to lower Scope 1 and 3 emissions for the company. It visibly demonstrates the company's commitment to sustainability and cleaner air, which can enhance brand reputation and help meet internal carbon-reduction targets. Moreover, providing a desirable benefit like a discounted EV can aid in employee retention and recruitment – it's a modern, forward-thinking perk that many staff appreciate.
From EVs to Solar Panels & Heat Pumps
The Electric Car Scheme's broader vision is not limited to electric cars. The company was founded on the principle of making net-zero solutions accessible and obvious, and it has been exploring ways to extend the successful salary sacrifice model to other carbon-cutting technologies.
In 2023, The Electric Car Scheme became the first EV salary sacrifice provider to earn B Corp Certification, reflecting its commitment to social and environmental performance and to being a "force for good" in driving sustainability. Building on that ethos, the team is now advocating for policy changes that would allow salary sacrifice to cover products like home solar panels, battery storage, and heat pumps for clean heating.
In fact, alongside other industry leaders and the Association for Renewable Energy and Clean Technology (REA), The Electric Car Scheme has urged the UK Government to use upcoming initiatives (such as the planned Warm Homes Plan) to extend salary sacrifice incentives to Energy Saving Materials and home clean tech installations. There is a strong logic here: the high upfront cost of items like heat pumps and solar panels is currently a major barrier for households, much as EV prices once were.
Salary sacrifice could remove that barrier by spreading costs and applying tax savings, making these green home upgrades much more affordable for working families. The potential impact is huge. Analysis by The Electric Car Scheme suggests that if salary sacrifice were expanded to home solar and heat pumps, it could facilitate around 230,000 new solar installations and 600,000 heat pump systems by 2030. This would meaningfully contribute to the UK's energy security and climate goals, while also lowering energy bills for homeowners and creating tens of thousands of jobs in manufacturing and installation.
For UK businesses and employees, this could open up a new suite of "net zero benefits" beyond company electric car schemes in the near future. Imagine being able to install a heat pump at home with no upfront cost, paying monthly via your employer, and saving 30-40% on the total cost thanks to tax savings. Such a mechanism could significantly accelerate decarbonisation of buildings, which is another sector where emissions reductions have lagged behind targets. Given that COP30 and international climate efforts are increasingly focusing on holistic solutions (energy, transport, buildings, etc.), the UK's exploration of salary sacrifice for multiple green technologies is an example of innovative policy intersection between workplace benefits and climate strategy.
Turning Climate Ambition into Practical Action
COP30 is shining a spotlight on the gap between climate ambition and implementation. For the UK, meeting net zero commitments will require not only high-level targets but also practical, scalable initiatives that enable people and businesses to make sustainable choices in their daily lives.
The rapid growth of electric vehicle uptake in the UK, supported by measures like salary sacrifice schemes and BiK tax incentives, illustrates how smart policy and private initiative can work hand in hand to drive change. By making EVs cheaper and easier than traditional cars, organisations like The Electric Car Scheme are directly contributing to decarbonisation goals in transport. Every EV on the road brings down emissions; hundreds of thousands of EVs, adopted years earlier than they might have been otherwise, will reduce transport emissions in line with the UK's carbon budgets.
Moreover, the emergence of The Charge Scheme for EV charging costs and the proposed expansion to home energy solutions show that this model of incentivisation can be extended to tackle other challenges. They exemplify the kind of innovation needed to ensure the transition to net zero is not only effective but also fair and inclusive.
As a certified B Corp, The Electric Car Scheme has demonstrated that business can be a powerful lever for good, aligning profit with purpose. By creating solutions that benefit employers, employees, and the environment simultaneously, it mirrors the spirit of COP30's multilateral partnerships, where everyone plays their part to achieve more together. Employers, large and small, can contribute by offering such schemes; employees can take advantage of them to improve their lives (new car, lower costs) while shrinking their carbon footprint.
Frequently Asked Questions
How does an electric car salary sacrifice scheme help meet UK net zero targets?
Electric car salary sacrifice schemes accelerate EV adoption by making zero-emission vehicles 20-50% more affordable through pre-tax salary deductions and the 3% Benefit-in-Kind rate. Employees with access to these schemes are four times more likely to switch to an EV, directly reducing transport emissions which account for 23% of the UK's carbon footprint. This rapid uptake supports the UK's legally binding target to cut emissions by 68% by 2030 and helps meet the Zero Emission Vehicle mandate requiring 80% of new car sales to be electric by 2030.
What is The Charge Scheme and how does it address the charging divide?
The Charge Scheme is an industry-first solution that allows employees to salary sacrifice their EV charging costs, whether charging at home, at work, or on public networks. This addresses the "charging divide" where 33% of UK households without driveways face higher public charging costs. Through salary sacrifice, employees save 20-50% on all charging expenses, making EVs equally cost-effective for drivers without home charging access and ensuring equitable decarbonisation across all demographics.
Can salary sacrifice be used for other net zero technologies beyond electric cars?
The Electric Car Scheme is advocating for extending salary sacrifice to cover solar panels, battery storage, and heat pumps. If approved, this could facilitate 230,000 new solar installations and 600,000 heat pump systems by 2030, addressing the high upfront costs that currently prevent households from adopting these technologies. This expansion would create a comprehensive "net zero benefits" package for employees whilst accelerating decarbonisation beyond transport to include energy and heating sectors.
What are the benefits for employers offering an electric car salary sacrifice scheme?
Employers offering an electric car salary sacrifice scheme benefit from no setup or running costs, reduced National Insurance contributions averaging £56,000 annually, and Complete Employer Protection against early termination liabilities. The scheme enhances employee retention and recruitment by providing a sought-after green benefit, whilst contributing to corporate ESG goals by cutting Scope 1 and 3 emissions, demonstrating sustainability commitments, and supporting carbon-reduction targets aligned with COP30 ambitions.
How do electric car salary sacrifice schemes compare to traditional EV ownership?
Electric car salary sacrifice schemes typically reduce costs by 20-50% compared to conventional post-tax leases or loans through income tax and National Insurance savings combined with the 3% BiK rate on zero-emission vehicles. The packages are fully inclusive, covering maintenance, servicing, insurance, road tax, and breakdown cover with no upfront payment required. For example, a £584 monthly lease might cost just £390 through salary sacrifice for higher-rate taxpayers, making premium EVs more accessible whilst accelerating the UK's transition to net zero transport.
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Last updated: 19/11/2025
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme’s terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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