Cardiff could introduce a £2 congestion charge for non-residents by 2024 as part of its new ‘transport vision’.
The £2bn scheme is outlined in Cardiff Council’s Transport White Paper, which aims to reduce congestion and improve air quality in the Welsh Capital.
Funding for the project could come from a universal, £2, low-charging system applied to non-Cardiff residents who drive into the city.
“We need to get people out of cars and on to public transport. To do that we need to give them the best public transport options. And to do that we need to raise money to pay for them.
"As part of a robust decision making process we will consider a number of options. Our preferred option would include an exemption for Cardiff residents from any charge,” said Councillor Caro Wild, cabinet member for strategic planning and transport.
Road user charging isn't the only option available to raise money and the Council said it will be looking at other options in a business case it plans to undertake over the next year.
Wild confirmed that no charge will be put in place until that business case is completed and all options have been reviewed, including possible parking place levies and congestion zones.
As part of its transport vision, Cardiff Council will “significantly” increase the number of electric vehicle charging points across the city by 2025, to encourage the take up of electric vehicles.
The Council's fleet of vehicles will be fully electric or ‘zero emission capable' for 2025.
Car Clubs will be expanded to reduce the need for residents to own their own car.
The Council will lobby Welsh Government to complete the Eastern Bay Link Road and put infrastructure in place to better connect residents living in the east of the city.
SMART technology will use real-time travel information to monitor and respond to transport, traffic and parking data, easing congestion on SMART transport corridors.
Sally Gilson, head of policy for Wales at FTA, said: “FTA is calling for Cardiff City Council to confirm the tests it will apply to ensure that the funds raised from the congestion charge will be able to build a genuinely more effective public transport network.
“If the scheme is successful in taking private drivers off the roads, it will make space for the vehicles that truly need access to the city, including commercial vehicle operators who must deliver the goods that supermarkets, hospitals, schools and restaurants all need to operate; too often, these drivers face heavily congested and slow-moving roads.
“FTA is also asking for clarification on how the charge will be managed and enforced, and whether charge will ignite real change or in reality just be an additional tax.”