The Netherlands has become dedicated to improving air quality in line with the values of the World Health Organization. Amsterdam officials began as early as 2019, stating all forms of petrol/diesel cars and motorbikes would be banned in the city from 2030 onwards. This rule has been expanded upon, by forcing non-passenger forms of transport to become emission-free by 2025.

The new legislation is likely to accelerate the already rapidly growing electric vehicle (EV) market in the Netherlands and the wider European market. Global sales of EVs are expected to grow rapidly to 2030, with a growth rate of 15.3%py. Passenger vehicles however make up the vast majority of vehicle sales (between 80 – 90%) and some passenger diesel cars (emissions classes 1 to 4) will also be included in the 2025 ban. While the ban on non-passenger and some diesel ICE vehicles will generate additional EV demand, the full 2030 ban on ICE passenger vehicles is expected to have a wider impact. 

The banning of ICE vehicle sales is not exclusive to Amsterdam. Major cities globally are exploring placing bans on ICE vehicles in densely populated cities to overcome air pollution and lessen the effects of smog. Paris, Mexico City, Madrid, and Athens are all looking to place bans on ICE vehicles, potentially accelerating the development of EV and increasing their growth even further as more cities follow suite.