The sale of cars with internal combustion engines will end by 2030 under a labour government, to help tackle the climate emergency.
The party intend to start talks with the car industry and trade unions to investigate the policies needed to secure this target.
It claims it wants to assist an “under siege” industry switch to electric car production.
This policy emerges as measures to phase out the internal combustion engine progress across Europe.
Phasing out diesel and petrol
Earlier this month, Denmark called for a plan to phase out diesel and petrol cars and sanction a ban on their sale by 2030. It was backed by 10 other EU countries.
Labour has already committed to provide £3bn to invest in electric car models and technology.
It will absolve new investment in plant and machinery from business rates, and another £2bn will help construct three battery plants.
Carbon neutral by 2030
It is unlikely this measure will make it into Labour’s next manifesto, but the party is establishing an ambitious plan to tackle the climate emergency regardless.
The shadow business secretary Rebecca Long-Bailey said: “The automotive sector is one of the UK’s industrial success stories. However, the sector is under siege from Brexit uncertainty and the Tory party’s lack of ambition on electrification.
“At the same time, we need to accelerate the shift away from fossil-powered cars if we’re to tackle the climate emergency. If we want our automotive sector to flourish, we need a government who is not afraid to intervene.
“It’s vital that we work alongside unions to create a plan for a just transition for workers employed in the automotive sector.”
Half the CO2
As part of its “Green Industrial Revolution”, Labour plan to spend £300m buying a fleet of 30,000 electric cars for hire. This would create a publicly owned rival to private hire car clubs such as Zipcar – who said it welcomed any plans for more electric vehicles on the road.
A study from Imperial College London discovered electric cars produce half the CO2 of a traditionally fuelled car, even considering their battery production.
Whilst electric cars are significantly more expensive to purchase, according to the EDF energy group the average lifetime cost of charging an electric car is just £15,000, compared to the £56,000 spent on petrol during a lifetime.
Shadow Chancellor John McDonnell has also pledged 500,000 interest free loans of up to £33,000 each to help people buy electric cars every year, with the government funding £750m towards the £1,500 cost of interest on each loan.