Government sets out Carbon Budget and Growth Delivery Plan: major implications for road transport
Fri 31 October 2025
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Zemo Partnership welcomes the publication of the UK Government's Carbon Budget and Growth Delivery Plan (CBGDP) which outlines how the UK will meet statutory carbon budgets while driving clean economic growth. The Plan reinforces that the transition to net zero represents a major opportunity for innovation, investment and job creation across the UK economy.
Secretary of State for Energy Security and Net Zero Ed Miliband said: “By driving towards our carbon budgets, we will increase our energy security and lower bills, create good, well-paid jobs with strong trade unions and boost innovation, exports and economic growth.”
Transport remains the largest emitting sector, responsible for around a quarter of total UK greenhouse gas emissions. Road transport contributes around 90% of that total, placing it at the forefront of the transition challenge. The Plan confirms key policy commitments, including that all new cars and vans sold must be zero emission by 2035, supported by the Zero Emission Vehicle (ZEV) sales mandate. For vans, the mandate requires 70% of new sales to be zero emission by 2030, rising to 100% by 2035. The Government also reconfirms the phase-out of non-zero emission HGVs by 2040.
To support uptake, the Plan highlights further investment in charging infrastructure, with more than 86,000 public charging devices now in place and continued funding through the £381 million Local EV Infrastructure (LEVI) Fund. It also calls for wider measures to reduce emissions, including improved vehicle efficiency, greater car occupancy, and a shift towards public and active transport.
Climate Change Committee Chair Nigel Topping welcomed the Plan, saying: “It’s good to see the first comprehensive plan from the current Government for achieving the next carbon budgets. However, a significant increase in roll-out rates is needed in the next few years.”
The Institutional Investors Group on Climate Change also backed the approach, noting that the Plan “provides the clarity needed to turn ambition into delivery.”
For the road transport sector, the direction is clear: the UK is moving from commitment to implementation, with focus now on accelerating uptake, expanding infrastructure and realising the economic benefits of a zero emission transport system.
The Government recently published a related Clean Jobs Plan which says that the clean energy economy will provide over 400,000 new jobs by 2030. (See news link.)
Related news: The Net Zero Council - Chaired by Ed Miliband and Shirine Khoury-Haq, CEO of the Co-operative Group - has launched a programme of work to develop Sector Transition Plans (STPs) to help businesses, investors and policymakers coordinate the UK’s transition to a clean, secure energy system while driving economic growth and improving lives across the country. Zemo Partnership is pleased to be working with the Net Zero Council and DHL to develop the Sector Transition Plan for Transport.
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