RAC > Drive > Advice and guides > Emissions > Environmental tax, how does it affect drivers?

Environmental tax, how does it affect drivers?

2nd Dec 2024

Drivers need to be aware of how emissions can impact them – and this includes the various environmental taxes that are in the UK.

These taxes are key tools for the government to achieve sustainability goals and tackling climate change.

This guide looks at what environmental taxes are affecting drivers in the UK, and what other countries have them in Europe.

What is environmental tax?

Environmental taxes – also known as green or eco taxes – are levies imposed on citizens on products and services that could have an impact on the environment.

The primary goals are to raise money for local and national government – as well as encouraging people to adapt environmentally-friendly practices and reduce pollution.

Regarding the motoring industry, there are several environmental taxes that affect the industry.

Environmental tax in the UK

There is not an ‘Environmental Tax’ in name, but there are many versions that impact drivers in the UK.

From fuel to road tax to driving in some city centres, there are many that drivers need to be aware of.

Examples of environmental tax

Environmental taxes impact drivers as there are levies issued due to the levels of emissions, to encourage the use of greener technology.

There are also ones for fuel, road tax, congestion charges, clean air zones, toll roads/bridges/tunnels, and many more.

Here are some of the environmental taxes that are impacting drivers in the UK:

What European countries have environmental taxes for drivers?

According to the European Automobile Manufacturers Association, there are many European countries that currently have some form of environmental tax that can impact drivers.

Those countries include;