The zone will be gradually be expanded to cover the whole of the city centre and all vehicle types, including HGVs, by 2035, according to proposals set out by Oxford city council and Oxfordshire county council.
The scheme aims to cut levels of nitrogen dioxide, the majority of which comes from traffic fumes, by three-quarters.
Oxford city councillor John Tanner said a “step change” is urgently needed as toxic air pollution is “damaging the health” of residents.
The scheme is expected to cost Oxford city council, Oxfordshire county council, bus companies, taxi firms and other businesses around £7m, in order to replace petrol and diesel vehicles with electric or hybrid alternatives.
Even the council’s gritting vehicles and bin lorries will need to be changed.
A further £7m will need to be spent on administration and installing CCTV cameras with number plate recognition to enforce the ban.
Anyone caught driving a non-electric vehicle in the zone will likely receive an automatic fine.
The city council said the zone would “need to be supported with further funding” from government, with bids in the near future.
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