Phase out internal combustion engine vehicles sales through performance-, weight- and usage-based penalties

Governments implement penalties based on vehicle performance, weight and use to phase sales of ICE vehicles. Such policies drive decarbonization while remaining less contentious among industry and consumers than a wholesale ICE sales ban. These penalties can take the form of additional taxes on heavy vehicles or a required level of emissions performance in new vehicles sold. Additionally, phaseout timelines give automakers a deadline to work toward. Governments should therefore stick to their original timeline to maintain investor certainty and hold automakers accountable. Interim targets should be set, however, with progress reviewed regularly.