Press Release

Mayor gives green light to CO2 charge to tackle climate change
12-2-2008   091

Ken Livingstone, the Mayor of London, today gave the green light to the world's most ambitious scheme to reduce the contribution of urban traffic to the greenhouse gas emissions which cause global warming.

The Mayor of London today approved the scheme which is the latest plank of London's environment programme, announcing that from 27 October cars with the highest greenhouse gas emissions, such as some so-called 'Chelsea tractors', high powered sports cars and luxury vehicles (Band G vehicles), will pay a daily charge of £25 to drive in the central London Congestion Charge Zone.

Cars with the lowest CO2 emissions (Bands A and B) will receive a 100 per cent discount encouraging people to use less polluting cars in central London.

The scheme is a key part of the Mayor's Climate Change Action Plan, which aims to reduce London's CO2 emissions by 60 per cent by 2025.

The move follows the introduction of the ground breaking central London congestion charging scheme in 2003 and the transformation of the whole of greater London into a clean air Low Emission Zone at the beginning of this month.

The highest CO2 emitting cars, which will be charged £25 to drive in the zone are those in Vehicle Excise Duty (VED) Band G and equivalent (including cars registered pre 2001 with engines over 3,000 cc). These are the vehicles that emit over 225g of CO2 per kilometre.

The lowest CO2 emitting cars are those in VED Bands A and B. These vehicles emit less than 120g of CO2 per kilometre. Where these vehicles also meet the strict Euro 4 air pollution emission standard they will become exempt from the daily charge.

Of those cars currently driven in the Congestion Charge zone, 17 per cent are Band G and would be liable for the £25 charge, and just two per cent are Bands A and B which would qualify for the 100 per cent discount.

The Mayor of London, Ken Livingstone, said:

"Nobody needs to damage the environment by driving a gas guzzling Chelsea Tractor in central London. The CO2 emissions from the most high powered 4x4s and sports cars can be up to four times as great of those of the least polluting cars. The CO2 charge will encourage people to switch to cleaner vehicles or public transport and ensure that those who choose to carry on driving the most polluting vehicles help pay for the environmental damage they cause. This is the "polluter pays" principle. At the same time, the 100 per cent discount we are introducing for the lowest CO2 emitting vehicles will give drivers in London an incentive to use the least polluting cars available.

"I believe that this ground breaking initiative will have an impact throughout the world with other cities following suit as they step up their efforts to halt the slide towards catastrophic climate change. I think this scheme will also start a cultural revolution whereby drivers in every city in Britain start to think about the impact on the environment of their choice of car and how they plan their journeys.

"We will be closely monitoring this scheme to ensure that goal of reducing traffic congestion in central London remains a central priority."

The Mayor has made clear that the new scheme is flexible and that both the charges and exemptions may be varied in the future to ensure that the twin goals of tackling traffic congestion and combating climate change are both achieved.

London’s Transport Commissioner, Peter Hendy, said:

"The Congestion Charge has been successful at cutting both traffic and congestion and vehicle emissions in central London. Thanks to the charge there are more people using public transport and cycling, plus road safety has improved. But we need to take even more steps to cut CO2 from transport and the CO2 Charge will encourage drivers to change their behaviour and change their vehicle choice in the future.”

"Road traffic is one of the biggest contributors to climate change. Measures that get people to choose greener cars, as well as to drive less, are urgently needed. Charging gas-guzzling vehicles more to drive in central London is extremely welcome and supported by most Londoners. We are delighted that Mr Livingstone is taking a lead on this issue.”

There will be no change to the size of the central London Congestion Charge zone.

ENDS

Notes to Editors

Both aspects of the CO2 Charge will be introduced on 27 October 2008.

1. The new charges will be as follows:
   • Low-CO2 emitting cars - 100 per cent discount (£0). Includes cars in Vehicle Excise Duty (VED) Bands A and B (up to and including 120g CO2 per km) which also meet Euro 4 air pollution emission standards
   • The majority of cars - VED Bands C, D, E and those in F with emissions up to 225g CO2 per km, as well as those registered pre 2001 with engines up to and including 3,000 cc, will continue to pay exactly the same daily charge as at present - £8
   • The highest CO2 emitting cars - VED Band G and equivalent vehicles (above 225g CO2 per km), as well as those registered pre March 2001 with engines larger than 3,000 cc, will pay £25 a day
2. Discounts and exemptions:
   • 100% discount for vehicles with the lowest CO2 emissions - those in VED bands A and B which meet Euro IV air pollution standards. Examples would include VW Polo Bluemotion 99g/km CO2, Seat Ibiza 1.4 TDI 80PS Ecomotion 99g/km
   • This will replace the existing Alternative Fuel Discount. Drivers already registered for the Alternative Fuel Discount would continue to receive the discount until January 2010, unless the vehicle changed ownership.
   • The current discounts and exemptions for Blue Badge holders and Taxis & Licensed Private Hire Vehicles would be unaffected by these proposals.
   • Under the Congestion Charging NHS reimbursement scheme, eligible claimants are reimbursed the £8 daily charge. This scheme would continue for the £8 standard daily charge; however those drivers of Band G vehicles would only be eligible for £8 reimbursement rather than £25.
3. Older Vehicles:
   The Driver and Vehicle Licensing Agency (DVLA) did not start automatically recording CO2 data until 2001 so emissions data may not exist for older vehicles. Cars first registered before 1 March 2001 and which have an engine capacity over 3,000cc would be subject to the higher daily charge of £25 as they have CO2 emissions comparable with Band G vehicles and have worse air pollution emissions than newer cars.
4. Transport - excluding aviation - accounts for 22 per cent of London's CO2 emissions

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