The UK’s Seventh Carbon Budget, unveiled in February 2025, represents a crucial step in the country’s fight against climate change. Setting emission reduction targets for 2038-2042, this budget builds on previous commitments to achieving net zero by 2050. With growing global pressure to curb carbon emissions, the UK must align its policies with the Global Carbon Budget 2024, which revealed a continued rise in CO2 emissions despite worldwide decarbonisation efforts. A key focus of the Seventh Carbon Budget is the transportation sector, particularly the expansion of electric vehicles (EVs) to drive down carbon output.
The UK’s Seventh Carbon Budget – What is it?
Carbon budgets set legally binding limits on the total greenhouse gases (GHGs) the UK can emit over a five-year period. Mandated by the Climate Change Act 2008, these budgets are established 12 years in advance to facilitate long-term decarbonisation planning. The Seventh Carbon Budget, covering 2038 to 2042, follows a trajectory of progressively stricter emissions targets designed to guide the UK toward a sustainable future.
This budget is particularly significant as it marks one of the last stages before the 2050 net zero deadline. To stay on course, the UK must continue reducing emissions across sectors, including energy, industry, transport, and housing. Among these, the transformation of the transport sector, especially through EV adoption, will be essential in achieving emission reduction goals.
The Global Carbon Budget 2024: An Urgent Call to Action
The release of the Global Carbon Budget 2024 underscored the ongoing challenges in global decarbonisation. The report highlighted record-high CO2 emissions, with persistent fossil fuel dependence offsetting renewable energy growth.
For the UK, these findings serve as a stark reminder of the urgency of climate action. The Seventh Carbon Budget must set ambitious yet attainable targets to keep the nation aligned with international efforts. Strong policies promoting clean transportation, energy efficiency, and sustainable industrial practices will be critical in achieving these objectives.
The Impact on Electric Vehicles
A major implication of the UK’s Seventh Carbon Budget is its influence on the electric vehicle sector. Transport remains the largest source of GHG emissions in the UK, making it a primary target for decarbonisation. The budget is expected to introduce new incentives and regulations to accelerate the transition to EVs.
1. Expansion of EV Infrastructure
To facilitate greater EV adoption, the government is set to invest significantly in charging infrastructure. Addressing one of the key barriers to EV uptake, the budget will allocate funds for rapid charging networks across motorways, urban areas, and underserved rural regions.
2. Potential Changes to the 2030 Ban on Petrol and Diesel Cars
The UK’s existing plan to ban new petrol and diesel car sales from 2030, with hybrid sales allowed until 2035, may be reaffirmed or adjusted. The Seventh Carbon Budget could introduce stricter emissions standards or additional incentives to phase out internal combustion engines (ICEs) ahead of schedule. EV Sales is ready for a higher interest in buying new and ex-rental vehicles, such as the Ford F-150 Lightning and the Tesla Model S P85.
3. Financial Incentives for EV Adoption
The budget is likely to include new grants and tax breaks at some point to make EVs more accessible. Possible measures include extending or enhancing existing subsidies like the Plug-in Car Grant and offering tax incentives for businesses transitioning to electric fleets. These initiatives aim to encourage both individuals and corporations to embrace EV technology.
4. Strengthening UK-Based EV Manufacturing
To reduce reliance on foreign EV production, the budget may incorporate policies to boost domestic manufacturing. Investment in battery production and gigafactories could not only mitigate supply chain risks but also create new green jobs. Strengthening the UK’s EV industry would support emission reduction goals while bolstering economic resilience.
A Key Juncture in the UK’s Climate Strategy
The UK’s Seventh Carbon Budget is a landmark in the nation’s journey toward net zero. As climate challenges intensify, the policy decisions made in 2025 will shape emissions reductions for decades to come. Integrating insights from the Global Carbon Budget 2024 will be crucial to ensuring the UK remains a frontrunner in climate action.
The budget’s emphasis on electric vehicles underscores the vital role of clean transport in cutting emissions. By investing in charging infrastructure, maintaining the 2030 ICE phase-out, and providing financial incentives, the government can accelerate EV adoption at scale. Additionally, strengthening domestic EV manufacturing will support long-term sustainability and economic growth.
As the UK navigates the transition to a low-carbon future, the Seventh Carbon Budget serves as both a challenge and an opportunity. Bold policy choices will be necessary to achieve net zero, and with the right measures in place, the UK can solidify its leadership in global climate action.
*All information correct as of 26 February 2025
Don’t forget to follow us on social media to stay up to date with the latest EV news:
Facebook: https://www.facebook.com/EVSalesUK/
X: https://twitter.com/ev_sales_uk
Instagram: https://www.instagram.com/evsales.uk/
TikTok: https://www.tiktok.com/@evisionsales
LinkedIn: https://www.linkedin.com/company/ev-sales