In the past few years, the government and local authorities have introduced a number of measures to decrease air pollution. These measures include Clean Air Zones (CAZs) and Low Emission Zones (LEZs), which have been designed to discourage the use of polluting vehicles and encourage the use of cleaner alternatives. With cities across the country enforcing these zones, they have quickly become a crucial component in the broader strategy to achieve net zero emissions.
For businesses operating within one of these zones, it's important that you stay up to date with regulation changes. This can help you to adjust your operations, promoting cleaner air and healthier communities.
What is a Clean Air Zone (CAZ)?
Clean Air Zones (CAZs) limit access to vehicles that do not meet specified emission standards, aiming to improve air quality and public health. If you plan to drive through a CAZ, you must pay a charge. This charge can be paid up to six days before your journey, on the day of travel or up to six days after entering the zone. Failure to pay the charge will result in a penalty of £120, which is reduced by 50% if paid within 14 days.
What is a Low Emission Zone (LEZ)?
Low Emission Zones (LEZs) also restrict access to vehicles that fail to meet specified emission standards. However, you cannot pay a charge to enter. Instead, you will receive a penalty if you drive through the zone in a non-compliant vehicle. The initial penalty is £60, which is reduced by 50% if paid within 14 days. Penalties for repeated breaches in a single day are doubled, with maximum fines of £480 for cars and light goods vehicles, and £960 for minibuses, buses, coaches and HGVs.
Where are the different zones in the UK?
There are a number of zones across the country, which could impact the operation of your business. Use the interactive map from The British Vehicle Rental & Leasing Association to locate the zones.
Zones in England
Clean Air Zones (CAZs) were first introduced in England in 2020. Currently, seven cities have implemented CAZs, each tailored to address their specific air quality challenges. However, another city is currently under review and may soon join the ranks of those enforcing CAZ regulations.
- Bath
- Birmingham
- Bradford
- Bristol
- Portsmouth
- Sheffield
- Tyneside
- Greater Manchester (under review)
- London: There are different rules for driving in London. Go to the Transport for London (TfL) website for more information.
Zones in Scotland
Low Emission Zones (LEZs) were first introduced in Scotland in 2022. Currently, four cities have enforced LAZs, each with specific measures to restrict high emission vehicles.
Zones in Wales
There are currently no zones in Wales. However, the Welsh Government has plans for a Clean Air Act, which will impact some of the busiest roads in the country.
Zones in Northern Ireland
There are currently no zones in Northern Ireland. However, the Department of Agriculture, Environment and Rural Affairs (DEFRA) has plans for a Clean Air Strategy, which will include measures to reduce vehicle emissions.
What vehicles can drive in the zones?
To drive in a CAZ or LEZ, your vehicle must meet specific emission standards, which are designed to limit the output of harmful pollutants. These standards, known as European Standards (ES), categorise vehicles based on their emission levels. Compliance with these standards is essential, as it determines whether you can enter a zone without receiving a penalty charge notice.
- Euro VI. Buses, coaches and HGVs.
- Euro 6. Diesel cars and vans.
- Euro 4. Petrol cars and vans.
- Euro 3. Motorbikes.
In CAZs, vehicles classes are used to further regulate vehicle types. Before you enter a zone, you will need to check the class to ensure you understand the restrictions and charges that apply.
- Class A. Buses, coaches, taxis and private hire vehicles.
- Class B. Buses, coaches, taxis, private hire vehicles and HGVs.
- Class C. Buses, coaches, taxis, private hire vehicles, HGVs, vans and minibuses.
- Class D. Buses, coaches, taxis, private hires, HGVs, vans, minibuses and cars. Some local authorities also include motorbikes.
What impact have the zones had on businesses?
While CAZs and LEZs aim to improve air quality, they also present challenges for businesses. Operating 24 hours a day, 365 days of the year, these zones require careful consideration from businesses to ensure compliance.
- Vehicle upgrades. To meet emission standards, you may need to upgrade or replace your vehicles with newer, lower-emission models. You may also need to invest in supporting infrastructure, such as electric vehicle chargers. For small to medium sized businesses, this can be a huge expense.
- Compliance costs. If your business operates within a CAZ or LEZ, you will have to pay a daily charge for every non-compliant vehicle that enters the zone. These charges can quickly add up, particularly for businesses that rely heavily on transportation, such as logistic companies and delivery services.
- Commuting employees. Employees that drive to work may notice a rise in their expenses, as they add charges and penalties to their outgoings. Some employees may consider alternative options, such as using public transport or upgrading their vehicle. However, these options present their own financial and logistical challenges.
What can businesses do to minimise the impact?
Clean Air Zones and Low Emission Zones can cause financial and operational challenges for businesses. To minimise the impact of Clean Air Zones or Low Emission Zones on your business, you can:
- Upgrade business vehicles. If your vehicles don’t meet the minimum emission standard, you may want to consider an electric or hybrid alternative. Not only will this ensure you remain compliant with regulations, but it will also demonstrate your commitment to sustainability, potentially enhancing your business's reputation. Find out more about switching your business to electric vehicles here.
- Set up delivery hubs. If your business delivers goods within a zone, you may want to establish delivery hubs. These could be located just outside the zones, allowing you to transfer deliveries to low emission vehicles for the final leg of the journey. This approach could be particularly effective for businesses that deliver small goods, as you could even use bikes for the last stretch. Learn about making your supply chain more sustainable here.
- Create a business account. If your business owns two or more vehicles, you may want to set up a Clean Air Zone business account. This could allow you to keep track of your vehicles, and view any charges that your business has received. You could even add your bank details, so that you are ready to pay daily charges and penalty fees.
If you found this page useful, visit our net zero hub for more free tools, tips and expert advice.
Please note, SSE Energy Solutions has written this blog for information purposes only. We recommend speaking to your own business and financial advisors before taking any direct action that will impact your business.
