Businesses and Green Groups call on Mayor to protect London’s global EV leadership

● Over 25 leading businesses and green groups have united in an open letter to the Mayor calling for bold action to support the electric vehicle transition and clean air in the capital

● Signatories of the letter include the AA, DPD, Openreach, Polestar, Uber, Centre for Net Zero, Green Alliance, Greenpeace, and influential union GMB

● The open letter asks the Mayor to maintain London’s Cleaner Vehicle Discount, one of the city’s most powerful clean air tools

Over 25 leading businesses and green groups have today published an open letter to the Mayor of London, Sir Sadiq Khan, calling for bold policy action to sustain London’s global leadership on electric vehicles (EVs) and protect air quality gains.

The letter is signed by AA, DPD, Openreach, Polestar, Royal Mail and Uber, green groups including the Centre for Net Zero, Green Alliance and Greenpeace, and union GMB London and GMB Southern Regions. It highlights that the Mayor’s policies to date have put London at the forefront of the transition to EVs, but the planned rollback of one of the city’s most powerful tools for improving air quality – the Cleaner Vehicle Discount (CVD) – could jeopardise this position.

Currently, the CVD allows EVs to travel through the congestion zone for free. This has encouraged thousands of London’s businesses and residents to invest in going electric, delivering cleaner air for the entire city, with a staggering 90% of the clean air benefits felt outside the central area.

These impressive gains are now threatened by proposals to roll back the discount and introduce new charges for electric vehicles. Proposed changes to the congestion charge will see EV drivers and businesses pay up to £13.50 a day to enter the zone. For drivers providing essential goods, services and transport in central London, this could mean additional costs of up to £3,000 per year for regular drivers, which will be shouldered by London households and businesses.

The letter highlights that these increased costs threaten to reverse London’s progress, and could prompt a backslide to petrol and diesel vehicles. Investment in charging infrastructure could also be put at risk, just as the city needs to accelerate to meet its 2030 net zero goals.

Despite the progress already made, the coalition points out that London still has a long way to go. More than a third of new cars being registered in the city are now electric, while only 3% of vans are electric. Supported by the CVD, around 30% of private hire vehicles – which represent some of the highest mileage drivers in the city – are now electric, a level of progress that could be put at risk by the proposed rollback.

The open letter has been launched by Electric London, a new coalition campaigning to drive EV momentum in London and maintain the capital’s world-leading status. In addition to maintaining city level incentives like the CVD, the coalition will also campaign to ensure equal access to affordable charging and to make EVs more accessible for all Londoners.

Clive Selley, CEO of Openreach, said: “As one of the UK’s largest fleet operators, we’re proud to be leading the shift to electric vehicles — with nearly 5,000 EVs already on the road — helping to cut emissions and improve air quality in London and beyond.

Incentives like the Cleaner Vehicle Discount have played a crucial role in making this progress possible. Reducing this support by half risks slowing momentum just as adoption is accelerating. Continued support is vital to overcoming barriers and keeping fleets like ours moving toward a cleaner, more sustainable future.”

Warren Kenny, London Regional Secretary for GMB, said: “The GMB stands shoulder to shoulder with those calling on the Mayor to rethink plans to scrap the Cleaner Vehicle Discount. This isn't just about clean air; it's about protecting jobs and livelihoods for our members who have invested in electric vehicles. Imposing new charges now would be a tax on progress and a blow to London's future as a “green city”. Workers have sacrificed substantial funds to make an environmental impact in the capital so why should they be penalised?”

Andrew Brem, UK General Manager for Uber, said: "Thanks to bold leadership, London has become a global leader in electrification. The congestion charge exemption for EVs has been instrumental to this. We want to work with TfL and others on a solution that maintains London's position as a global leader."

Greg Sage, Director of Corporate Affairs and ESG at Royal Mail, said: “We fully support the Coalition’s call for the Mayor to strengthen his commitment to electric vehicles so London remains at the forefront of the transition to EVs. As the UK’s largest electric delivery fleet operator, we believe that sustained investment in the EV transition is essential not only for protecting the environment, but for supporting the wellbeing of our people and the communities we serve across London.”

Matt Galvin, Managing Director of Polestar UK, said: “The UK has consistently removed incentives to support customers making the move to pure electric and has even increased the tax burden on EV drivers.

We are fully in favour of cleaning up London’s air quality, but removing the CVD will only slow EV adoption and put our net zero targets at risk.

We therefore urge a rethink from TfL. Simply put, it is too early to be taking away highly effective incentives such as these.”

Andy Hackett, Senior Policy Adviser at Centre for Net Zero, said: “As the EV transition begins to move from early to mass adoption, now is not the time to lose momentum. Lower running costs remain a key advantage for consumers – an incentive that policy should reinforce. Citizens and businesses opting for an EV should continue to be rewarded for cutting London's transport emissions and improving air quality.”

 Guy Bartlett, CEO of Believ, said: "Believ has seen first-hand how the Cleaner Vehicle Discount has accelerated the transition to electric vehicles across London, particularly among the city’s highest-mileage drivers like taxi and private hire operators. Removing this vital incentive now would not only risk stalling this hard-won progress but could also slow down the transition towards zero emission vehicles. As a result of the positive and bold policies supporting EV adoption, London’s air is becoming cleaner and its residents healthier. For London and the UK to truly reach our net zero goals and continue to improve air quality, we must maintain these incentives and continue investing in the infrastructure that makes driving electric accessible and affordable for everyone."