Description: In 2003, London made history by becoming the first city after Singapore to introduce congestion pricing for vehicles entering the Congestion Charge Zone in Central London. Following initial implementation in 2003, the congestion pricing program has been modified several times. While studies showed that the Congestion Charge initially succeeded in reducing London traffic, over time it resulted in increased bus, delivery van, and taxi traffic with the majority of these vehicles powered by diesel engines that contributed to the already poor air quality of London. Furthermore, increasing use of ride hailing services also eroded some of the early reductions in traffic congestion achieved by the Congestion Charge. The result was that many argued that the Congestion Charge had become obsolete in its current form and needed to be revised or replaced.

Mayor Sadiq Khan, elected in 2016, outlined a bold strategy to make London the greenest global city by investing in infrastructure that enabled more walking and biking while simultaneously reducing the use of polluting vehicles. The Ultra Low Emission Zone (ULEZ) was launched in April 2019 in an effort to minimize dependence on polluting vehicles, help combat air pollution, and accelerate progress toward the Mayor’s goal of net zero carbon emissions by 2030. The ULEZ initially covered the same area as the Congestion Charge Zone in Central London and in October 2021 was expanded to include all areas inside the North and South Circular roads; it now covers a quarter of London and 3.8 million people.

In the ULEZ, which is in operation 24 hours a day and 7 days a week with the exception of Christmas Day, most vehicles that fail to meet a specific set of emissions standards must pay a daily charge of ￡12.50 (the equivalent of about $17.20). Non-compliant vehicles driving within the ULEZ without a specific exemption or those failing to pay the daily charge must pay a penalty fee of ￡160 (or ￡80 if the fee is paid within 14 days). These charges are in addition to the ￡15 daily Congestion Charge.

Since 2017 London has provided over ￡60 million, in several different programs, to ease the burden on low-income and disabled residents, taxi cab and minibus owners, as well as small businesses making a switch to ultra low emission vehicles. Revenue generated by the ULEZ and other charging policies (e.g., Low Emission Zone and Congestion Zone regulations) will be reinvested into London’s public transit system.

Goal: 

• Reduce toxic emissions, including nitrous oxides, carbon dioxide, particulates (PM_2.5), and other air pollution within the ULEZ to improve air quality.
• Expand low-emission public transport and non-motorized mobility options.
• Encourage residents and businesses to switch to cleaner vehicles, public transport, or walking and cycling by establishing the world’s toughest driver-pays low emission zone.
• Accelerate the shift to ultra-low emission vehicles by providing subsidies to low-income and disabled residents, as well as small business owners and targeted larger businesses, to scrap older polluting vehicles.