London’s EV Exemption Cuts Threaten Net‑Zero Transport Progress

Welcome to Net Zero News, your daily briefing on the UK’s transition to a low‑carbon future.

As of January 2026, Transport for London (TfL) has confirmed that electric vehicles (EVs) will now incur partial Congestion Charge fees a significant shift in policy that may impede the capital’s push towards net‑zero transport. The Cleaner Vehicle Discount (CVD), which granted a full exemption to EVs until the end of 2025, has been replaced with a phased reduction in discounts. Starting 2 January 2026, EV vans, HGVs and light vehicles registered for Auto Pay will receive a 50% discount, while electric cars will receive just 25% off the £18 daily Congestion Charge. From March 2030, those discounts drop further to 25% and 12.5%, respectively. These changes mean many EV drivers in central London will now face higher daily costs up to £13.50 for cars and £9 for vans potentially slowing the uptake of clean vehicles. TfL argues that the adjustments are needed to manage traffic and congestion effectively while continuing to support sustainable transport transitions. What this means for the future of net‑zero transport in London remains to be seen.

Meanwhile, the van industry is sounding the alarm over the significant delays in installing depot charging infrastructure. Recent analysis shows that operators may face waits of up to 15 years for grid connections well beyond the end-of-sale dates for new internal combustion commercial vehicles. Without faster grid access, businesses may be discouraged from investing in electric fleets, fearing poor return on investment and unprepared infrastructure. The Society of Motor Manufacturers and Traders (SMMT) is urging an urgent overhaul of grid planning and prioritisation to prevent such delays from undermining commercial vehicle electrification.

In Wales, the government has appointed Zemo Partnership to lead a two‑year ‘Moving to Zero’ programme aimed at accelerating decarbonisation across the commercial vehicle sector and its supply chains. The initiative builds on a March 2025 Zemo report recommending 60 targeted policy objectives to tackle emissions from road freight and logistics which account for 34% of Wales’s surface transport emissions. The ‘Moving to Zero’ programme will drive short- to medium-term emissions reductions, support fair transition for businesses, and foster efficient logistics operations through technology and better route planning.

To summarise, three critical developments are shaping the UK’s net‑zero transport journey:
• London’s scaled-back EV exemptions may slow EV adoption in the capital by increasing daily driving costs.
• Grid delays remain a major barrier to electrifying van and HGV fleets across the UK.
• Wales is committing to structured and targeted policy-led decarbonisation in the commercial transport sector.

What this means:
The removal of EV exemptions in London could undermine one of the capital’s key incentives for drivers to switch to cleaner vehicles. Fleet operators may delay electrification unless charging infrastructure keeps pace with vehicle rollout. The Welsh approach, with clear policy objectives and dedicated support, offers a model other regions could emulate to ensure smoother transitions for businesses. To sustain momentum towards net‑zero transport, urgent attention must be paid to policy coherence, infrastructure readiness and fair pricing mechanisms.

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