For owners of an average vehicle, the proposed new standard charge will be£115, an increase of£55 on the current charge. Owners of so-called 'gas-guzzlers' would pay£200.
Money raised will go to schemes to make roads safer, traffic calming safety schemes, as well as Freedom Passes for elderly and disabled residents.
The measures, to be introduced from April, make Lambeth the second council in Britain to charge more for more heavily polluting vehicles.
Environment and culture cabinet member Lib Peck said:
'We are developing policies designed to persuade people to limit non-essential car use, and to encourage people to think about how much cars pollute when they come to change their vehicle.'
Housing, planning & environment
Regeneration & transport