Calculate the cost of your carbon emissions

It’s becoming more expensive to produce carbon emissions. Calculating costs can help you compare alternatives and save on common business expenses.

Petrol and diesel taxes

Compared to electric vehicles (EVs), fuel-powered vehicles are more expensive to run.

Petrol and diesel are taxed at 57.95p per litre. This is expected to rise as the government encourages switching to EVs. Average running costs are:

4p per mile for EVs
9p per mile for fuel vehicles

Calculate petrol or diesel costs compared to electric

Add up annual miles driven in fuel vehicles.
Multiply annual miles by 9p per mile for fuel.
Multiply annual miles by 4p per mile for electric.
Record the difference.

Low emission and clean air zone charges

In a growing number of UK cities you must pay to drive petrol and diesel vehicles in low emission zones (LEZ), ultra low emission zones (ULEZ) or clean air zones (CAZ). These are in place in London and Bath. Birmingham will launch its CAZ on 1 June 2021.

Cities with planned LEZ or CAZ charges in the next year include:

Bristol
Bradford
Portsmouth
Newcastle
Manchester

EVs and some lower emission vehicles are not required to pay. Daily savings include:

London city centre ULEZ charge (£12.50 to £100)
Greater London LEZ charge (£100 to £300)
Birmingham Clean Air Zone charge (£8 to £50)
Bath Clean Air Zone charge (£9 to £100)

EVs are also exempt from London’s £15 daily congestion charge until December 2025.

Calculate the cost of LEZ, ULEZ and CAZ

Add up the days per year a petrol or diesel vehicle drives in a LEZ, ULEZ or CAZ.
Check your number plate for the daily rate in London and Bath and Birmingham.
Multiply driving days by daily rate for the annual cost.

Switching to a zero emission EV eliminates these costs.

Vehicle tax

EVs with zero emissions do not pay:

vehicle tax at registration (£10 to £2,175)
annual ongoing vehicle tax (£140 to £150)
annual tax for vehicles over £40,000 (£325)

Calculate the cost of vehicle tax

Check what you currently pay to calculate the yearly cost savings of switching to an EV.

Climate Change Levy (CCL) on electricity, gas and LPG

Most businesses are required to pay a Climate Change Levy (CCL) on energy bills. Charges from 1 April 2023 include:

Electricity (0.775p per KWh) – also applicable on electricity generated by renewables
Gas (0.672p per KWh)
LPG (2.175p per kg)

The government has projected rates up to 2023-24.

Many sectors are eligible for a discount, of over 90% on electricity, under a Climate Change Agreement (CCA), administered by a sector association.

Calculate CCL costs

CCL rates are a separate charge on energy bills – add these up for the past year to get annual costs. Doing this for a 12-month period will take seasonal changes into account.

You can save on CCL by reducing your energy use. Ideas include: