Should Carbon Emissions be included in London's ULEZ ?

by Amandeep Singh, Decarbonisation and Sustainability expert, London.

Introduction

In today’s world, where climate change discussions are increasingly becoming common, the term "emissions" and carbon dioxide are nearly becoming synonymous. In that context, It was surprising to discover that London's Ultra Low Emission Zone (ULEZ) does not regulate carbon emissions.

Since its inception, ULEZ has played a pivotal role in combating urban pollution by targeting vehicles that emit high levels of nitrogen oxides (NOx) and particulate matter (PM). These vehicles face charges if they fail to meet strict pollution standards. Nitrogen oxides (NOx) and particulate matter (PM) are predominantly emitted by older diesel and petrol vehicles. Petrol non compliant cars are typically models pre-2006 Euro 4 standards and diesel non compliance cars are the pre 2015 models before Euro 6 standards. In terms of proportion 96.4% of all the cars on the streets of London are compliant.1  This high rate of compliance has led to a substantial decrease in harmful air pollutants, thus contributing to a cleaner and healthier environment throughout the city. The policy has resulted in a nearly 50% reduction in central London's roadside nitrogen dioxide levels, significantly improving air quality and leading to health benefits such as reduced rates of asthma, heart disease, lung disorders, and premature deaths.
But the high compliance rate also raises an important question: if nearly all vehicles on the road are compliant, what is the future significance of the ULEZ as a policy?

Limitations of Current Scope & Future Significance
As vehicle technology advances and more vehicles become compliant, the future relevance of ULEZ needs to be reconsidered. Expanding ULEZ to include carbon emissions could be a crucial next step. This would not only address air quality but also align with broader climate goals, helping London reduce its overall carbon footprint and fight climate change more effectively. As transportation accounts for 25% of the city’s emission, including CO2 emissions in ULEZ will be a significant step forward and will accelerate London’s Net Zero journey.2

Public Response and Debate
The implementation and expansion of ULEZ have not been without controversy. Among Londoners, there are split views, leading to vigorous discussions and even protests. Some residents and businesses argue that the charges impose financial burdens, particularly on those who cannot afford newer, compliant vehicles. This dissent has occasionally manifested in public protests, highlighting the societal impact and the need for careful consideration of economic inequalities when designing environmental policies.

Enhancing Societal Equity in Policy Implementation
Therefore, implementing a policy that considers societal equity becomes paramount. By structuring ULEZ charges to impose higher rates on bigger, more emitting and expensive vehicles, the policy could better address economic disparities. This graduated charging approach would not only help mitigate the financial burden on those who rely on less expensive cars but also ensure that those with greater economic means contribute more to the environmental clean-up efforts.

Strategic Alignment with Climate Goals
Incorporating carbon emissions into the ULEZ aligns closely with the UK Government’s broader climate strategy, which aims for net-zero carbon emissions by 2050. The Transport Strategy further aims to achieve net zero for all transport emissions by 2035. By updating ULEZ standards to include carbon emissions, it will provide a smoother transition into Net Zero 2035 from transportation.


Financial Implications and Revenue Generation
Expanding ULEZ to regulate carbon emissions could generate substantial economic benefits. It is estimated that approximately 1.457 million vehicles are detected daily entering London's expanded Ultra Low Emission Zone (ULEZ).1 Introducing a carbon charge as low as £0.10/kms for low emissions vehicles & £0.25/kms for high emission vehicles could potentially raise around £1 Billion annually. This revenue could play a pivotal role in funding the city's transition to a green economy.

Utilization of Funds for Sustainability Initiatives
The revenue from the expanded ULEZ could be strategically reinvested into various sustainability projects, which are crucial for achieving London’s decarbonisation goals. For instance, funds could be used to upgrade the aging Tube system, making it more energy-efficient and capable of handling greater passenger loads without increasing emissions. Additionally, investing in greener buses and expanding cycling lanes could further reduce the city’s reliance on fossil fuels.

Global Context and Financial Needs
Globally, an estimated $7 trillion annually is needed to meet the 2050 net-zero emissions target. By generating funds through environmental charges like the ULEZ, London can contribute to these financial needs effectively. The city’s efforts could serve as a model for how urban areas can finance their transition to sustainability, leveraging policy tools to foster environmental and economic benefits simultaneously.

Vision for London: A Global Environmental Leader
The inclusion of carbon emissions in London's ULEZ will elevate London’s role as an influential leader in the global battle against climate change. Given its historic role as a hub of global influence, London is uniquely positioned to influence  international action and establish sustainable benchmarks for cities worldwide. By embracing this leadership role, London can showcase how major urban centers can act as powerful catalysts for significant environmental transformation.

References:
1. Transport for London | Every Journey Matters. (2024, May 26). ULEZ compliance data. Transport for London. https://tfl.gov.uk/modes/driving/ultra-low-emission-zone/ulez-compliance-data

2. Centre for London. (2021, September 27). Reimagining London’s transport system. https://centreforlondon.org/blog/reimagining-london-transport/