Managing the business impact of Low Emission Zones
Read time: 7 mins Added: 11/05/2026
As we get closer to the 2045 date the Scottish government has set for becoming Net Zero, we’re seeing the introduction of more environmental targets. Scotland introduced Low Emissions Zones (LEZ) in Aberdeen, Dundee, Edinburgh and Glasgow in June 2022. England has Clean Air Zones (CAZ) in several major cities and large towns. Let’s consider how they impact businesses and what support is available to help you manage additional costs.
What are Low Emission and Clean Air Zones and why are they in place?
To improve air quality and help Scotland and the UK meet their Net Zero targets Low Emission Zones and Clean Air Zones have been introduced in and around major cities.
Air pollution can damage the health and wellbeing of people, plants and animals. In 2025, the Cleaner Air for Scotland report found improvements in air quality as a result of these changes.
Where are the zones?
Scotland has implemented Low Emission Zones (LEZs) in its four largest cities—Glasgow, Edinburgh, Aberdeen, and Dundee.
In England, several cities and different classes of vehicles are included. You can find out which cities have CAZ in place and which vehicle types are covered.
What are the cost implications?
As the Scottish and UK governments commit to the enforcement of LEZ and CAZ, businesses operating within the zones or travelling into them may need to consider the costs of doing so. The zones typically operate 24 hours a day, 7 days a week. To check if you need to pay a charge, here is the information for the different schemes:
For Scotland.
For a CAZ in England.
For London’s low emissions or ultra-low emissions zones.
How businesses can manage the financial impact of LEZ and CAZ
For businesses needing to drive into LEZ or CAZ often, and whose vehicles don’t meet the minimum standard for emissions, the costs can quickly mount up, potentially up to £100 per day for larger vehicles. Businesses wanting to avoid these costs have a couple of options:
Re-route your vehicles
To avoid travelling through the zones, you could adjust the routes your vehicles need to take, although this could lead to inefficiencies. Businesses considering this should weigh up the costs of additional time, fuel, and wear and tear on vehicles through avoiding the zones.
Upgrade your vehicles
Upgrading your fleet to meet the emissions standards could be an option. While this is a significant upfront investment, it would reduce operational costs, and there are grants and incentives available to help.
Financial support
In Scotland, in addition to schemes run by local authorities to help businesses transition to a greener future, there are schemes to support households and businesses with the transition to LEZ. These include:
Disposal Grants and travel vouchers
- Aimed at those who would encounter difficulty in transitioning to the LEZ.
- Eligible households can apply for a cash grant as an incentive to dispose of a non-compliant vehicle.
- Following the disposal, funding is available towards the purchase of a bike, e-bike or public transport pass.
- For micro businesses, funding is available for the removal of a non-compliant car or van, which is replaced by either a compliant vehicle or an alternative, such as an e-cargo bike.
- The scheme is run by the Energy Savings Trust and is means tested.
Workplace Charging Scheme
- The Workplace Charging Scheme, offers a grant to provide up to £500 per socket towards the cost of installing chargepoints at workplaces. You can apply for grants for up to 40 sockets across all your sites.
The grant is open to eligible:
- businesses
- charities
- public sector organisations
Supporting business sustainability
We understand that many businesses are keen to make the transition to Net Zero, but many too are facing a challenging business environment, that can make capital investment more difficult. That’s why we’re committed to supporting you to reduce costs, explore efficiencies and improve your green credentials.
Investing in upgrading your fleet to make it compliant with LEZ and CAZ standards can seem like a significant step, even with the grants available. But that long-term investment could make a real difference. We have a range of funding options available to support you.
Growth Financing
Bank of Scotland’s Clean Growth Financing Initiative can help you access discounted lending for investment in a range of green purposes, including low carbon transport. Discounts are available for terms up to five years and can be applied across term loans, revolving credit or asset finance.
Bank of Scotland’s Asset Finance offers different Hire Purchase and finance lease solutions, including greener vehicles, to new and existing business customers with a turnover more than £100,000 per annum, and that have been trading for 13 months. This allows businesses to spread the cost of the asset over time (12 to 60 months) with the option to own the asset at the end of the term.
Fleet financing is available through our specialist business Lex Autolease. They offer a range of solutions for fleets of all sizes that can help your business become greener.
Here to help
We understand that navigating the opportunities and risks of transitioning to a low carbon future can be challenging, which is why we offer practical support as well as funding. In partnership with the Cambridge Institute of Sustainable Leadership, we have trained and accredited Relationship Managers ready to help your business transition to Net Zero. From reviewing your supply chain to improve its sustainability, to wider green initiatives or even changing your company culture, they can work with you for a better future.
Our sustainability hub is a great place to get started. You can find out more about the benefits of transitioning to be more sustainable, with insights from experts and other businesses, as well as about the support available and how we can help you achieve a cost-effective, efficient and greener tomorrow.