New car environmental labels – what do they mean for consumers?

Take a closer look at the new labels designed to help you better undertand your car's impact on the environment.

What’s happening?

The UK Government took the decision to review whether the environmental labelling of new cars was giving consumers the most relevant and easy to understand information when they purchase a new vehicle. The Government’s Road Transport Emissions Advisory Group, which includes representatives of the motor industry including the RAC, has helped to develop a new system which focuses on giving consumers the most relevant information in relation to their purchase.

These labels went live in Spring 2020.

What do the labels look like?

Old labelling

New labelling

There are several key features of the new labels which provide consumers with better information when deciding on a new car to buy. These include:

• Running costs: Consumers will get details on estimated monthly fuel costs and for those with a plug-in electric vehicle, there will be estimated monthly electricity costs. The new labels make it clear how cost-effective fully electric and, to a lesser extent, hybrids are to run. It also means consumers can far more easily choose the car with the lowest running costs for their needs.
• Electric range and fuel economy: New features will show drivers how far they can get on a single charge if they opt for an electric vehicle, while owners of conventional vehicles will have more reliable fuel economy information. Note: a range of factors can affect the range of an electric or conventionally powered vehicle. For more information on electric vehicle range, see the RAC’s comprehensive guide developed with the Energy Saving Trust.
• Compliance with Clean Air Zone charging schemes: With clean air zones being introduced across England and Wales (low emission zones in Scotland), in addition to the current London Ultra Low Emission Zone, the information shows prospective buyers if their new vehicle is compliant with the national clean air zone charging framework. Consumers should note that certain smaller local schemes might not fall within the national framework.

Why has this been done?

There was a consensus that previous environmental labelling of new cars did not provide consumers with enough information for them to make informed choices on choosing a lower emission vehicle. The previous labelling, for example, only included limited information on running costs. The RAC’s research suggests that running costs, as well as the upfront cost of the vehicle, remains a key factor for a driver when choosing their next car.

Additionally, with the introduction of pollution charges in some urban areas, the previous labelling system did not let consumers know whether a vehicle they chose was subject to charges or not.

RAC head of roads policy Nicholas Lyes said: “There has been a great deal of work done by Government and stakeholders such as the RAC to develop something that gives consumers better labelling with more information to help them understand the impact of their choices both from an environmental point of view and from how it impacts them in their pockets. This isn’t just about telling consumers how much tax they’ll pay; it also gives them an indication of running costs. Consumers will now be far better informed.”

What about used cars?

At present the new label is for new cars only.