UK to end sales of new combustion cars by 2030

The UK government has announced that it will ban the sale of new internal combustion cars from 2030. In this way, it will end the sale of new gasoline and diesel cars and vans ten years earlier than initially planned. However, the commercialization of hybrid cars and vans will be allowed until 2035.

In this way, the United Kingdom is ahead of France and Spain, which have marked the date of 2040 as the time when new combustion vehicles will no longer be registered. Spain does so through the Climate Change Law at an advanced stage of processing in Congress. Ireland and the Netherlands have also planned to end conventional cars by 2030. The country with the most ambitious target is Norway, which plans to do so in 2025.

The government’s announcement is part of an ambitious plan to achieve a genuine green industrial revolution, and support the creation of up to 250,000 British jobs.

The plan includes areas of action in the field of clean energy, transport, nature protection and innovative technologies, and is configured as the great bet of its British government in the strategy of decarbonization of the economy by 2050 aimed at achieving a zero balance of emissions by mid-century. It is also the great British contribution, which seeks to be particularly exemplary, to the UN climate summit to be held next year in Glasgow.

“I am glad that the UK has decided to ban new petrol and diesel cars from 2030. We have to put aside the technology of the last century and make way for the new one. People want to breathe clean air, and they have the right to do so; but time is of the essence,” says Maria Neira, Director of Public Health at WHO.

“The sooner governments around the world realize that putting health at the center of their recovery plans is a victory for people, for our economy and for our planet, the better.”

“An accelerated shift to electric cars is as good for the economy as it is for the planet. In the UK alone, almost 30,000 additional jobs will be created by the end of the sale of new cars with combustion engines sooner; this will also boost the economy by 0.2%. Electrification offers enormous opportunities for job creation and GDP growth across Europe and the world. The sooner manufacturers and governments adjust to this new reality, the better off they will be,” said Greg Archer, director of Transport and Environment in the UK.

Impact on exporting countries

It is also a revealing sign of the British government’s ambition before it publishes its own new carbon reduction targets ahead of next year’s summit.

The overall impact of the UK’s decision will be significant; for example, for Spain. According to the UN database Comtrade, Spain exports 11% of its total cars to the United Kingdom. In fact, the United Kingdom is a relevant destination for these exports, as it represents a significant percentage of the sales abroad made by 8 of the 15 main exporting countries of passenger cars; will have an impact on Germany (which exports 12.6%), Belgium (20.4%) and France (7.6%).

Constant overtaking of dates

The UK’s ambition in this field has increased dramatically in a short period of time. In July 2017, the UK decided to ban the sale of all diesel and petrol cars and vans from 2040.

In February 2020, it brought forward the date of a ban on the purchase of new petrol, diesel or hybrid cars and vans from 2040 to 2035, and finally the Government initiated a consultation to gather views on the feasibility of an even faster transition.

The announcement demonstrates how quickly the transition to a low-emission economy is taking place.

The four largest fleet operators in the United Kingdom, BT and Openreach, Centrica, DPD UK and Royal Mail have been in favour of this average.

Boiling market

Although a significant milestone, the UK’s new phase-out date is part of the changes in the market and consumer perception. Citizens are starting to buy more electrified vehicles.

Although new car sales have fallen by 29% during the first nine months of 2020 in Europe due to the pandemic, the biggest blow was suffered by diesel vehicles, which are losing market share.

The new Biden administration is also expected to increase ev sales by tightening fuel efficiency standards, and investing in electric vehicle manufacturing, battery technologies and federal vehicle electrification.

A sector in transition

For traditional automakers, the advent of new electric cars and automation has led to a significant job loss even before the pandemic. German automakers eliminated 50,000 jobs in 2019, and the economic slowdown is expected to lead to further layoffs in 2020. In fact, unemployment in the automotive sector could reach 410,000 by 2030, according to a study funded by the German government.

Germany has the largest automotive workforce in Europe with 869,000 employees in 2017, followed by France (223,000), Poland (203,000), the United Kingdom (186,000), Italy (163,000) and Spain (158,000).

A study by Transport and Environment concludes that, if EU car manufacturers accelerate production plans for electric vehicles, jobs in the automotive sector could increase to 108% of current employment levels. In the EU, 206,000 net additional jobs will be created by 2030.

The net impact on employment of switching to vehicles will be between 66,000 and 71,000 jobs in France, and 23,185 in Spain. In Germany, the transition to low-carbon transport will generate net employment of 145,000 jobs by 2030. Other studies show the positive macroeconomic effects of the shift from ICE cars to electric vehicles across the EU.

Downward emissions

Despite attempts by some industry groups to delay emission targets and slow the pace of change, major brands have ambitious electric vehicle programmes in Europe and have issued statements in support of CO2 emission standards, despite the difficult task of launching EV sales.

Daimler CEO Ola Kallenius said electric cars are a non-negotiable part of the future, as the company cut dividends to free up money for the transition to electrification just before the coronavirus crisis. VW has also reaffirmed its commitment to accelerate the manufacture of electric vehicles by 2025 and continues to strive to reach EU emission standards in 2020 and beyond, as the new rules give signals on how signals are being given to the electrification of the industry.

Source: The Vanguard