Ken Livingstone, the Mayor of London, is introducing new CO2 based charges to enter London’s congestion zone.
The new emissions-based Congestion Charge commences on 27 October, 2008.
It will mean that drivers of cars with CO2 emissions in excess of 225g/km will be charged £25 to enter the congestion zone. Double-cab pick-ups will also be hit with the charge.
However, cars with emissions below 120g/km – the same figure as the new low-emission 10% company car tax break (see Company car tax changes) – will receive a 100% exemption from the charge.
For cars with emissions between 120g/km and 225g/km the current £8 entry fee will apply.
The new CO2 Congestion Charge, says Transport for London, is designed to:
- Encourage drivers within the charging zone to travel in vehicles which produce lower levels of carbon dioxide (CO2)
- Discourage the use of vehicles with high CO2 emissions
The boundary of the Congestion Charging zone, and charging hours of 0700-1800 Monday to Fridays, remain the same.
The new emission rules will also rule out certain hybrid vehicles that qualified for the Alternative Fuel Discount (AFD). The 100% discount, affecting higher-emission hybrids such as the Lexus 400h, will be phased out by January 2010.
However, low-emission hybrid vehicles, such as the Honda Civic Hybrid and Toyota Prius, qualify for full exemption as their emissions are below 120g/km.
“What we’ve seen here is a shift from a charge based on a car’s technology to an emissions-based approach,” commented Graham Avent, manager – corporate sales, Honda.
“But it’s no change for Honda. The Civic Hybrid can still enter the zone for free. And although many people view the Congestion Charge as a tax on 4x4s, the CR-V avoids paying £25 a day – as it’s one of the cleanest cars in its class.”
Key points of the new London Congestion Charge
- 100% discount for cars producing less than 120g/km CO2
- £10 registration payable to qualify for 100% discount
- £25 charge for cars and double cabs with CO2 above 225g/km
- £8 charge for cars with emissions between 120g/km-225g/km
- Photo (c) Transport for London 2005
- More details on the new London Congestion Charge can be found in our Law & Tax article How much is the London Congestion Charge from 27.10.08?
- For further discussion on the London Congestion Charge, go to the Editor’s blog