Green electric vehicle drivers face paying thousands of pounds a year in congestion charges from December in a huge threat to efforts to clean up London’s air, a new report warns today.
It says that the capital’s global reputation as a world leader in leading EV adoption is a risk from City Hall’s decision to abolish the Cleaner Vehicle Discount (CVD) later this year.
Under current rules drivers of fully electric vehicles do not have to pay the Mayor’s £15 a day congestion charge, a long standing policy that has been credited with the rapid adoption of EV cars in London.
However, Transport for London has said the 100% discount will end on Christmas Day, forcing EV drivers to fork out for the daily levy and putting green cars and vans on the same footing as polluting petrol or diesel vehicles.
The report, from policy consultancy Stonehaven Global, warns that the scrapping of the CVD could lead to sharp increase in levels of harmful pollution in London, reversing the welcome improvements in air quality achieved over the past decade.
The report, titled Electric London, predicts that central London faces an 11% rise in nitrogen based NOx emissions and an 8% hike in PM2.5 particulate levels. Both are known to have harmful effects on human health.
It would impose up to £5,000 in additional costs per year on drivers reliant on EV vehicles who also cannot avoid travelling into the congestion charge zone – including service workers, delivery drivers and health professionals.
The report also calculates that 93% of the CVD’s clean air benefits are experienced outside the Congestion Charge Zone as the majority of drivers who switch to EVs do most of their driving beyond central London.
The CVD incentive has helped drive a huge uptake in EV adoption in the capital. They currently account for more than a third of new cars being registered in London, which has around 30% of the UK’s public charging points.
But the report warns that the removal of the CVD puts this leadership at risk.
It says that “as the CVD approaches its expiry on Christmas Day this year, the city faces a decision that could significantly derail progress: remove this exemption or protect one of its most effective air quality strategies globally.”
TfL has always insisted that the rise in the number of electric vehicles over recent years means that “continuing to provide the CVD would undermine the benefits of the congestion charge. “
But the report calls on City Hall to launch an immediate consultation on keeping the CVD, protecting its benefits “and maintaining the incentive for high mileage drivers – such as private hire vehicle drivers and commercial fleets – to switch at scale.”
The report, commissioned by Uber, goes on highlights the huge divide in the accessibility and cost of home and public charging infrastructure across the city.
Those unable to charge at home – around half of Londoners – currently face rates at least seven times higher while access varies widely between boroughs.
The report urges central government to enact a ‘right to charge’, alongside a centralised scorecard from TfL to monitor borough advancements in EV infrastructure.
A social leasing scheme could also help bridge the affordability gap, offering lower income drivers and key workers a fair chance in the electric revolution.
Michael Dnes, head of transport policy at Stonehaven Global, said: “London has what it takes to be a world leader in EV uptake. But it needs to keep tools like the CVD that are working well; and it needs to make sure going electric feels like the smart, safe move for everyone. “Get that right, and the Mayor will set an example for all other cities in the UK and around the world. But get it wrong, and millions of ordinary Londoners will be out of pocket by hundreds or even thousands of pounds, and clean air targets will be put at risk.
“With central government worrying about how to keep the switch to EVs going up, London's leadership and toolkit are badly needed.”
Andrew Brem, UK General Manager for Uber, said: "London is a global leader in Electric Vehicle adoption thanks to bold policies from the Mayor of London.
“We have made huge progress in recent years towards our goals and remain committed to continuing that momentum, but we know we cannot achieve it alone.
“The exemption for EVs from the congestion charge has been instrumental in making EVs attractive for drivers and we want to work constructively on a solution that maintains London's progress in switching to fully electric vehicles.”
Laura Timm, the new London Regional Chair for the Federation of Small Businesses (FSB), said: “FSB has campaigned long and hard for the extension of the congestion charge exemption for businesses who use Electric 1 commercial vehicles. Many small firms invested in electric infrastructure to comply with the London-wide implementation of the Ultra Low Emission Zone – during a cost of doing business crisis. Now is not the time to punish small firms who have done the right thing.
“We welcome the report by Stonehaven which provides a firm evidence base for extra support aimed at small businesses looking to invest in electric infrastructure and a broadening of the charging points across the capital.”
Oliver Lord, UK Head of Clean Cities Campaign, said, "London's transition to electric vehicles is not without its challenges and this report offers valuable insight at a critical time. The Mayor's leadership is essential right now to unite everyone behind his vision to make London the world’s first electric vehicle ready global city and to give businesses the confidence to invest."
Dr Polyvios Polyviou, Programme Director for Transport at BusinessLDN, said: “City Hall has made great strides in improving air quality in London whilst accelerating the EV transition across the capital – but now is the moment to act decisively and build on that momentum. Without bold policy action and strong financial incentives, London risks falling behind. Bringing policymakers, TfL and businesses together over the coming months is essential to map a clear, ambitious path forward.”
