From this week, the Government will be collecting a synthetic greenhouse gas (SGG) levy when a motor vehicle is registered in New Zealand for the first time.
Synthetic greenhouse gases are refrigerants used in air-conditioning systems of motor vehicles. They have very high global warming potentials and impact on climate change.
By placing an added cost on these gases, the government aims to encourage industry to use alternative low global-warming refrigerants, which has a lesser impact on climate change.
The NZ Transport Agency will collect information on these gases during the vehicles entry certification process; this information will be used to automatically charge the levy when the vehicle is registered. This is similar to how an ACC levy is collected with a motor vehicle licence.
The levy is anticipated to be approximately $3.50 for cars and small trucks $4.70 for large trucks and small buses, and $23.50 for large buses.
If you would like more information of Synthetic Greenhouse Gas, please visit the Ministry for Environment website www.mfe.govt.nz(external link)
