The move has been announced by Prime Minister Boris Johnson, who has called for a "green industrial revolution" to tackle climate change.
He explained: "My 10-point plan will create, support and protect hundreds of thousands of green jobs, whilst making strides towards net zero by 2050.
"Our green industrial revolution will be powered by the wind turbines of Scotland and the North East, propelled by the electric vehicles made in the Midlands and advanced by the latest technologies developed in Wales, so we can look ahead to a more prosperous, greener future."
Under the new plans, some hybrids would still be allowed.
However, the government's announcement has been criticised by Caroline Lucas, the Green Party's MP.
She claimed that it "completely fails to rise to the gravity of this moment".
Lucas told BBC Radio 4's 'Today' show: "When you put it in the context of the scale of the climate and nature emergencies that we face, and indeed the scale of the job emergencies that we face, then it's nowhere near ambitious enough, it's not urgent enough, it's not bold enough."
She also questioned the £4 billion allocation to the scheme, insisting the resources "aren't there in order to make this a really strategic package".