Ultra-Low Emissions Zone: London

Overview

City-level emissions zones can promote the use of more efficient and less polluting internal combustion engine vehicles, and even support adoption of zero-emission vehicles. Transport for London (TfL) – the government body responsible for transport policy in London – introduced its Ultra-Low Emissions Zone (ULEZ) charge in April 2019. Since then, the ULEZ has enforced a mandatory fixed daily charge on heavily-polluting vehicles accessing central London. The scheme expanded significantly to cover up to the North-South circular boundary of London in October 2021.

Source: Transport for London

The ULEZ charge ranges from around £12.50 to £100 per day per non-compliant vehicles. Fully electric, hydrogen and hybrid vehicles are exempt, as are petrol and diesel cars that meet certain standards (e.g. Euro 4 for petrol cars). Diesel cars and vans need to meet the Euro 6 standards, affecting vehicles registered before 2015. A congestion charge is also in place, in addition to direct incentives for electric vehicles (EVs) such as free on-street parking and charging.

Impact

To date, London’s ULEZ has reduced congestion and local pollution with fewer non-compliant vehicles directly accessing the zone. Within the first six months of the scheme’s implementation, the share of compliant vehicles accessing the zone rose from 61% to 74%, according to local authority data.

The Mayor of London’s office says improvements in air quality within the ULEZ have grown swiftly since 2017. There are over 44,000 fewer polluting cars driving in the zone every day, and toxic NO2 concentrations have fallen by 44%. London’s black taxi manufacturers responded with a £300m investment to research and produce ultra-low emission taxis.

The ULEZ, alongside London’s congestion charge scheme, is part of a package of measures to reduce congestion and improve air quality, as well as provide incentives, resources and opportunities for residents and companies to transition to cleaner and more efficient vehicles. Regular drivers can save over £4,500 per year by complying with the ULEZ requirements.

* Source: C40 Cities, BloombergNEF, Mayor of London’s Office.

Opportunity

Electric vehicle adoption is already picking up in many countries and cities, but the pace must accelerate to meet climate targets. Electrifying high-mileage fleets like taxis, ride-hailing cars, buses and delivery vehicles can dramatically cut local pollution and emissions. Emissions zones can certainly be implemented in cities elsewhere. Many other U.K. municipalities are already moving to adopt them, with some mandated to do so as part of the U.K. government’s central clean air zones initiative.

Source

BloombergNEF and C40 report, Building on Cities to Deliver a Green and Just Recovery