Transport for London (TfL) plans to remove the ‘alternative fuel discount’ for the London congestion charge and introduce a CO2 emissions-based ‘greener vehicle discount’ that, it said, would encourage a switch to much cleaner and more CO2 efficient cars.

The schem had been criticised for exempting large and relatively fuel inefficient hybrids like while charging frugal, low-CO2 petrol and diesel models.

TfL said the greener vehicle discount would provide a 100% discount to cars that emit 100g/km of CO2 or less and meet Euro V enission standards. 

As with the current alternative fuel discount, owners of cars eligible for the greener vehicle discount would have to pay a GBP10 annual registration charge.

TfL also plans to widen the eligibility criteria for the electric vehicle discount to include plug-in hybrid electric vehicles.

The plans, announced on Monday, are part of a wider review that would see the western extension to the scheme, added in 2007, dropped and the charge for the remaining area hiked to GBP10 from GBP8. Simpler payment methods are also part of the changes, due for introduction on 4 January.