What taxes apply to electric vehicles and when will new petrol and diesel cars be banned? – BBC

Report on UK Electric Vehicle Policy and Alignment with Sustainable Development Goals

Introduction: A Strategic Framework for Sustainable Transport

The United Kingdom has introduced a new pay-per-mile road charge for electric vehicles (EVs) and plug-in hybrids, a policy measure designed to ensure fiscal sustainability while advancing the nation’s commitment to the Sustainable Development Goals (SDGs). This initiative is part of a broader strategy to transition towards a low-carbon transport sector, directly supporting SDG 13 (Climate Action) by targeting the country’s “net zero” emissions goal by 2050. The policy framework also intersects with SDG 11 (Sustainable Cities and Communities) and SDG 9 (Industry, Innovation, and Infrastructure) by reshaping urban mobility and driving investment in green technology.

Policy Implementation and Climate Action (SDG 13)

Legislative Measures for Decarbonisation

The UK government’s transport strategy is anchored by its legally binding commitment to achieve net-zero greenhouse gas emissions. As the domestic transport sector was the largest contributor to emissions in 2023, policy interventions are critical for meeting climate targets.

• Ban on Fossil Fuel Vehicles: A ban on the sale of new petrol and diesel cars will be enforced from 2030, with new hybrids permitted until 2035. This measure is a direct action to mitigate climate change, aligning with the core objectives of SDG 13.
• Transition to Electric Mobility: From 2030, all new cars sold must be either fully electric or plug-in hybrid, accelerating the shift away from internal combustion engines.

New Taxation System for Electric Vehicles

To create a sustainable revenue model previously reliant on fuel duty, a new road charging system will be introduced. This addresses the long-term fiscal implications of the green transition.

1. Pay-Per-Mile Charge: Effective April 2028, a charge of 3p per mile for EVs and 1.5p per mile for plug-in hybrids will be implemented.
2. Vehicle Excise Duty (VED): From April 2025, EVs became subject to VED, with rates harmonised with conventional vehicles.
3. Congestion Charge: In London, the exemption for EVs from the congestion charge will be removed in 2026, promoting sustainable urban transport management consistent with SDG 11.

The new tax is projected to generate £1.1 billion in its first year, ensuring continued investment in public infrastructure.

Infrastructure and Economic Growth (SDG 9 & SDG 8)

Developing Sustainable Infrastructure (SDG 9)

The viability of the EV transition is dependent on robust and accessible charging infrastructure. The government is actively investing to overcome existing challenges and ensure equitable access, a key target of SDG 9.

• Current Infrastructure Status: The UK has approximately 87,000 public charge points across 44,000 locations.
• Government Investment: An additional £200 million has been allocated to accelerate the charge point rollout.
• Addressing Disparities: Reports indicate a regional imbalance, with 43% of charge points located in London and the South East. Efforts are underway to ensure the government meets its target of 300,000 public chargers by 2030 and improves nationwide coverage.

Fostering Economic Growth and Green Jobs (SDG 8)

The transition to electric mobility is positioned as a driver for SDG 8 (Decent Work and Economic Growth) by stimulating the green economy.

• Electric Car Grant Scheme: A government fund, initially £650 million and supplemented with an additional £1.3 billion, provides grants of up to £3,750 to reduce the upfront cost of EVs.
• Support for Manufacturing: The Transport Secretary has stated that subsidising EV sales is an investment in the UK’s future and supports high-quality manufacturing jobs.
• Market Growth: New fully electric car registrations rose from 29,800 in October 2024 to 36,800 in October 2025, representing a quarter of all new car registrations. The goal is to reach 80% by 2030.

Consumer Impact and Responsible Consumption (SDG 12 & SDG 7)

Promoting Sustainable Consumption Patterns (SDG 12)

Encouraging the adoption of EVs is a key component of fostering more responsible consumption. However, cost remains a significant factor for consumers.

• Upfront Costs: The higher initial price of new EVs is a noted barrier, though government grants and a growing second-hand market are making them more accessible.
• Running Costs: Operational expenses for EVs are generally lower than for petrol or diesel vehicles, particularly for maintenance and home charging.

Ensuring Affordable and Clean Energy (SDG 7)

The cost of charging is a critical element in ensuring the transition is equitable and aligns with SDG 7 (Affordable and Clean Energy).

• Home vs. Public Charging: Charging at home is significantly cheaper, benefiting from a lower 5% VAT rate compared to the 20% rate for public charging. This disparity raises equity concerns for households without private driveways.
• Public Charging Costs: Prices at public charge points vary by speed and provider. Ultra-rapid charging can be more expensive per mile than petrol or diesel, highlighting the need for a competitive and transparent charging market.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 13: Climate Action
   • The article directly links the UK’s transport policy to climate goals. It states that banning new petrol and diesel cars is part of the government’s effort to meet a “legally binding aim of achieving ‘net zero’ by 2050.” It also identifies domestic transport as the “largest emitting sector,” responsible for “more than a quarter of emissions in 2023,” highlighting the urgency of climate action in this area.
2. SDG 7: Affordable and Clean Energy
   • The core topic is the transition from fossil fuel-powered vehicles to electric vehicles (EVs), which represents a shift towards cleaner energy in the transport sector. The article discusses the cost of this clean energy, comparing home charging costs (which use domestic energy) with public charging and traditional fuels, thus touching upon the “affordable” aspect of this energy transition.
3. SDG 9: Industry, Innovation and Infrastructure
   • The article extensively discusses the development of infrastructure required to support the EV transition. It mentions the need for a sufficient number of public charge points, the government’s target of “300,000 points needed by 2030,” and the investment of “a further £200m for speeding up the rollout.” This directly relates to building sustainable and resilient infrastructure.
4. SDG 11: Sustainable Cities and Communities
   • The shift to EVs is a key strategy for creating sustainable transport systems in cities. The article mentions specific urban policies like the London congestion charge, which will apply to EVs from 2026. Furthermore, it highlights the unequal distribution of charging infrastructure, noting that “the South East and London… currently host 43% of all charge points,” which is relevant to providing equitable access to sustainable transport in all communities.
5. SDG 8: Decent Work and Economic Growth
   • The article connects the government’s EV policy to economic objectives. The Transport Secretary is quoted stating that subsidising EV sales would “support economic growth” and “the good quality manufacturing jobs associated with that.” This frames the transition as an investment in the country’s economic future and job market.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The UK government’s decision to ban the “sale of new petrol and diesel cars in 2030” and the introduction of a new tax system for EVs are clear examples of national policies designed to achieve the “net zero” by 2050 climate goal.
2. Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix.
   • While the article doesn’t specify the source of electricity, the policy of replacing internal combustion engines with electric motors inherently promotes a cleaner form of energy for transport, contributing to an increased share of electricity (a potential vector for renewables) in the transport energy mix.
3. Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure… with a focus on affordable and equitable access for all.
   • The article details the plan to build out EV charging infrastructure, with a target of 300,000 charge points by 2030 and significant government investment. It also addresses the “equitable access” component by highlighting the “patchy” availability of chargers on motorways and the concentration of infrastructure in London and the South East.
4. Target 11.2: By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all.
   • The government’s promotion of EVs through measures like the “Electric Car Grant scheme, with grants of up to £3,750” is a direct attempt to improve the affordability and accessibility of a sustainable transport system. The discussion on running costs and the development of a widespread charging network also relates to making this system accessible for all.
5. Target 8.2: Achieve higher levels of economic productivity through… technological upgrading and innovation.
   • The transition from petrol and diesel cars to EVs represents a significant technological upgrade for the country’s transport and manufacturing sectors. The Transport Secretary’s comments on supporting “economic growth” and “good quality manufacturing jobs” directly link this technological shift to achieving higher economic productivity.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Indicators for Climate Action (Target 13.2) and Clean Energy (Target 7.2)
   • Percentage of new car registrations that are electric: The article states this was a “quarter of new car registrations” in October 2025, with a national goal to “increase this to 80% by 2030.”
   • Total share of EVs in the national fleet: The article provides a baseline figure of “at least 1.7 million fully electric cars on UK roads, about 5 per cent of the total.”
   • Greenhouse gas emissions from the transport sector: The article implies this indicator by stating that domestic transport “was responsible for more than a quarter of emissions in 2023.” Tracking this percentage over time would measure progress.
2. Indicators for Infrastructure (Target 9.1) and Sustainable Cities (Target 11.2)
   • Number of public charging points: The article provides the current number as “almost 87,000” and the national target as “300,000 points needed by 2030.”
   • Geographic distribution of charging points: Progress on equity can be measured by tracking the percentage of charge points outside of London and the South East, which currently host “43% of all charge points.”
   • Government investment in infrastructure: The article mentions specific funding amounts, such as “a further £200m for speeding up the rollout of charge points.”
   • Financial support for EV adoption: The value of grants and subsidies is an indicator of affordability efforts, such as the “Electric Car Grant scheme” with an initial “£650m” fund and an additional “£1.3bn.”
3. Indicators for Economic Growth (Target 8.2)
   • Number of manufacturing jobs in the EV sector: This is implied by the Transport Secretary’s statement about supporting “good quality manufacturing jobs.” While no number is given, it is a clear metric for measuring the economic impact.

Summary Table

4. SDGs, Targets, and Indicators

Source: bbc.com