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UK government consults with car industry on 2030 petrol and diesel ban

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The UK government has opened a consultation to determine how the ban on sales of new petrol and diesel cars, set to take effect by 2030, will be implemented. This initiative aims to accelerate the nation’s transition to zero-emission vehicles (ZEVs) and reduce greenhouse gas emissions, in line with the country’s climate commitments.

The consultation is divided into two distinct parts, reflecting the multifaceted challenges of the transition:

Part 1: Phasing out petrol and diesel vehicles. Spearheaded solely by the UK government, this phase focuses on:

  • Finalising options to cease sales of new internal combustion engine (ICE) cars by 2030.
  • Establishing guidelines for hybrid vehicles and new non-zero emission vans sold between 2030 and 2035.
  • Tailoring approaches for small-volume manufacturers.
  • Identifying effective demand measures to encourage the adoption of electric vehicles (EVs).

Part 2: ZEV mandate and vehicle emissions trading scheme (VETs). This section, conducted collaboratively with the Scottish Government, Welsh Government, and Northern Ireland’s Department for Infrastructure, seeks to refine and adapt the ZEV mandate. Key issues include:

  • Reviewing existing flexibilities within the mandate and exploring new ones.
  • Proposing technical updates to enhance the efficiency of the ZEV mandate.
  • Informing potential amendments to CO2 emissions regulations.

The consultation comes amid mounting concerns from carmakers over slow EV adoption rates. Although EV sales accounted for 18% of the UK car market from January to November 2024—an increase from 16% during the same period in 2023—this figure remains below the 22% threshold set by the ZEV mandate for 2024.

The automotive industry has warned of potential economic repercussions if the transition is mismanaged.

Mike Hawes, SMMT Chief Executive, said, “The automotive industry welcomes government’s review of both the end of sale date for cars powered solely by petrol or diesel, and possible changes to the flexibilities around the Zero Emission Vehicle Mandate.

“These are both critical issues for an industry that is facing significant challenges globally as it tries to decarbonise ahead of natural market demand.

“Aside from the billions invested in new technologies and products, it has cost manufacturers in excess of £4 billion in discounting in the UK this year alone. This is unsustainable and, with the 2025 market looking under even greater pressure, it is imperative we get an urgent resolution, with a clear intent to adapt the regulation to support delivery, backed by bold incentives to stimulate demand. Such action will support not only the industry, but also deliver for the economy, consumer, government and the environment.”

The consultation will evaluate several pressing issues, including: the eligibility of hybrid models for sale post-2030; the integration of electric van sales into carmakers’ overall ZEV targets; extending credit systems and other flexibilities for manufacturers struggling to meet initial targets; and expanding consumer incentives to bolster EV uptake, addressing affordability concerns, and improving charging infrastructure.

Transport Secretary Heidi Alexander described the consultation as an opportunity to “restore clarity” on achieving the 2030 ban.

“We need a collaborative effort between government, industry, and stakeholders to ensure the UK remains a leader in the green transition,” she said.

The government has also proposed measures to mitigate potential financial penalties for carmakers, which currently stand at £15,000 per vehicle for failing to meet ZEV targets. These include extending schemes allowing manufacturers to offset shortfalls by selling more EVs later.