By Luke Green, Policy Analyst 

According to the Department for Transport, a heavy goods vehicle (HGV) is any mechanically propelled vehicle designed to carry goods with a maximum loaded weight exceeding 3.5 tonnes.

While buses and coaches fall outside this definition, their electrification journey offers a valuable precedent: the UK now has nearly 10,000 zero-emission buses, coaches and minibuses on the road¹. The question is no longer whether heavy-duty transport can electrify, but how quickly that success can be replicated for HGVs?

In March 2026, the government announced a billion-pound package of targeted funding for electric HGVs and charging depots. This level of funding is a strong signal of intent. However, experience from the bus sector shows that funding alone is not enough. To translate ambition into delivery, it must be matched by a regulatory and policy framework that enables investment across the value chain.

Aligning supply and demand in the eHGV market

The outcome of the government’s recent HGV CO₂ emissions consultation will be pivotal. At Zenobē we believe that the most effective framework will balance both sides of the market: vehicle supply and fleet demand.

A Zero Emission Vehicle (ZEV) mandate for manufacturers would ensure sufficient volumes of electric HGVs are produced for the UK market, creating the supply-side certainty needed to unlock investment. At the same time, fleet adoption requirements for operators would ensure demand develops in parallel. This is critical not just for manufacturers, but also for charging infrastructure providers and grid operators, who rely on long-term visibility to plan and invest at scale.

Taken together, these mechanisms create a self-reinforcing system in which each part of the value chain can move forward with confidence. Manufacturers can commit to production, operators can plan their transition, and infrastructure providers can deliver ahead of demand rather than in response to it.

But even with the right regulatory backbone in place, there remain three areas where policy has yet to keep pace with the transition.

Three ways to supercharge the eHGV transition

Update the Renewable Transport Fuel Obligation (RTFO) to include electric

The government policy at the moment requires fuel suppliers to source an increasing share of energy from renewable sources. In real terms, this rewards liquid biofuels through tradable certificates that reduce their supplier costs. No equivalent mechanism exists for electricity used to charge electric vehicles.

This creates a structural imbalance. As it stands, the policy actively favours biofuels over zero-emission electric transport. The government’s own 2025 review acknowledged this issue, but it has yet to be addressed in a way that supports the electrification required.

Extending the RTFO to include renewable electricity supplied at certified charging points would correct this imbalance. It would align the policy with the UK’s wider decarbonisation goals while creating a clear commercial incentive to invest in charging infrastructure. Without this change, policy risks holding back the very transition it is intended to support.

Tackle rising non-commodity electricity costs

For fleet operators, electricity costs are increasingly driven by non-commodity charges rather than wholesale prices. These include network charges such as TNUoS charges, which have risen significantly following the Targeted Charging Review in 2023.

These increases are materially affecting the total cost of ownership for electric HGVs. In some cases, they are delaying fleet transition decisions altogether. The issue is not simply one of cost, but of alignment: the current pricing structure does not reflect the strategic importance of electrifying road freight.

There is a clear precedent for intervention. In the industrial sector, qualified energy intensive industries are eligible to receive relief and compensation from non-commodity electricity costs. Road freight underpins virtually every supply chain in the country, yet fleet electrification is not currently afforded the same recognition. In our report Charging Forward, we identified the need for an exemption from these charges for electric bus operators to support the environmental and financial transition to electric transport.

With the government’s renewed commitment with the £1bn funding announcement, electricity reform is needed to ensure that electricity pricing supports, rather than undermines, policy ambition. This includes extending relief mechanisms to charging infrastructure and moving towards network charging structures that incentivise electrification.

Continued and predictable grant support for fleet operators

The recent £1 billion funding package represents meaningful progress, but businesses need predictability in order to scale. Fleet operators are navigating a complex transition in an environment shaped by energy price volatility and broader economic uncertainty. For many, particularly SMEs, the challenge is not just whether to electrify, but when and how to commit.

Short-term or inconsistent incentives risk slowing adoption by increasing perceived risk. In contrast, long-term and predictable support, combined with access to tailored financing, enables operators to move beyond pilot projects and commit to full fleet transition with confidence.

From ambition to execution The UK has already demonstrated leadership in the electrification of buses. Building on that success in the HGV sector is both achievable and necessary, but it will require a coordinated approach. The pathway is clear: targeted funding, aligned regulation and electricity reform. With decisive action, the UK can move decisively from ambition to execution and secure a leading role in the transition to zero‑emission freight.

¹ SMMT New bus & coach registrations report https://www.smmt.co.uk/strongest-new-bus-and-coach-market-since-2008-as-zero-emission-uptake-surges/