The £2 per hour charge, which will come into effect in early 2018, follows the diesel surcharge already in place for resident parking permits.
Westminster has already been trialling a similar diesel parking charge trial this year.
Islington Council estimates between 25% – 30% of the 1.59 million short stay visitor parking sessions are by diesel and heavy oil vehicles.
The council believes the surcharge will discourage the use of diesel vehicles and reduce harmful emissions.
The news follows London Mayor Sadiq Khan’s £10 T-Charge for polluting cars entering central London which was introduced last month – on top of the Congestion Charge.
Cllr Claudia Webbe, Islington Council’s Executive Member for environment and transport said: “London is on the brink of an air-quality emergency, with traffic pollutants linked to health problems that are shortening the lifespans of residents.
“Islington straddles several major thoroughfares, with huge amounts of traffic putting out toxic diesel pollutants stopping in the borough every day… We hope that this measure will encourage owners of diesel vehicles to switch to cleaner, more sustainable modes of transport and lead to improved air quality in the borough.”
The council recently launched its own energy supplier, aiming to take on the Big Six energy giants.