Vehicles earn credits or incur charges depending on whether they’re above or below the target. There are two payment schemes – Pay As You Go (PAYG) and Fleet Average.
Vehicles earn credits when their CCS CO2 value is lower than the target. Credits do not have a monetary value but you can use them to offset charges or transfer them with other account holders.
If you have credits in your account, you can use these to offset charges. You can do this once you are in the payment screen in your CCS CO2 account. When used for offsetting, credits have the same value as charges.
You can transfer credits from one CCS account to another within the CCS system, with the authorisation of both account holders.
You can only transfer credits between accounts of the same type – that is, new-to-new and used-to-used. You can transfer them between PAYG and Fleet Average accounts if the accounts are the same type (new-to-new or used-to-used).
The credit transfer function sits in the CCS system. However, Waka Kotahi is only providing the system functions for the authorised transfer of credits. Waka Kotahi has no involvement in, visibility of, or responsibility for any credit trading arrangements between account holders (ie, any financial agreements or monetary transactions between parties related to CO2 credit transfers). Any credit trading arrangements are the responsibility of the account holders and take place outside the CCS system.
In order to transfer credits, you must be Anti-Money Laundering (AML) checked first.
This is a requirement under the Anti-Money Laundering and Counter Financing of Terrorism Act 2009 to help tackle money laundering in New Zealand.
In line with this legislation, Waka Kotahi is required to conduct customer due diligence on importers wishing to transfer credits. This includes understanding importers' ownership structures and verifying the identity of associated individuals. We do this through an AML provider who will require you to provide information that confirms your name, date of birth and address (eg, your driver’s license or birth certificate). In the case of companies or trusts, the directors, shareholders, trustees and non-discretionary trust beneficiaries may also need to provide this information.
Your information will be used only to conduct customer due diligence and identity verification. It will remain confidential and will not be shared outside of the AML provider or Waka Kotahi without your consent.
Waka Kotahi also recommends that you seek your own legal advice in relation to AML prior before you transfer credits to, or receive them from, other account holders.
To initiate the AML checking process, contact us on CCSImporter@nzta.govt.nz. Please provide your phone number and email address and we’ll contact AMLHub.
Waka Kotahi publishes a list of CO2 account holders who have provided their consent and their contact details for credit trading purposes.
This register is designed to help importers to get in touch with each other if they are interested in trading CO2 credits.
CCS Account Register [PDF, 233 KB]
CO2 account holders can choose whether to be included on this register. If you’d like to be added to or removed from the register, or you would like to update any of the information, get in touch with the CCS team at CCSImporter@nzta.govt.nz.
Vehicles incur charges when their CCS CO2 value is higher than the target. You can settle charges by making a payment or using available credits (credit offset), or a combination of both.
Charge rates and payment methods are different depending on whether the importer is on the Pay As You Go scheme or the Fleet Average scheme.
Most importers are on PAYG which is the default CCS scheme.
Under the PAYG scheme, charges and credits are applied on a vehicle-by-vehicle basis as each vehicle is imported.
If your vehicle’s CO2 emissions are greater than the target, you will be required to settle the charge for the vehicle when you accept it in your CO2 account. You can do this by paying the charge in full, using credits to offset the charge in full, or paying part of the charge and using credits to offset the remainder. Multiple vehicles can be select for settlement at the same time. The settlement only needs to be done for the vehicle before it is registered.
The charge rates per CO2 grams for Pay As You Go for 2024 are:
You need to apply to be on the Fleet Average scheme and you need to already have a CO2 account.
Under the Fleet Average scheme, vehicles are assessed based on the imported vehicles across the entire year. If at the end of the year the average CO2 emissions of the vehicles imported are higher than the target, importers are invoiced for the charges.
All light vehicles still need to be accepted by the importing account holder after PDI and before the WOF is issued even though not payment is needed. This acceptance confirms the vehicle is in the correct account with the correct details. The CCS CO2 value is finalised based on this acceptance.
Fleet Average is beneficial for businesses who import large volumes of vehicles as it allows you to manage your debits and credit vehicles on an annual basis.
The charge rate per CO2 grams for Fleet Average is higher than for the Pay as You Go rate as the importer has the opportunity over 12 months to offset debit and credit vehicles.
The charge rates per CO2 grams for Fleet Average for 2024 are:
If the annual result is an invoiced charge under Fleet Average, payments are not due until April of the following year.
An importer can apply to change from a PAYG to Fleet Average account at any time. This requires a detailed application to be submitted and assessed. Likewise, they may ask to swap from Fleet Average to PAYG.
Approval is subject to the following five criteria:
The criteria are set out in Sections 21 and 22 of the Land Transport (Clean Vehicle Standard) Regulations 2022.
Sections 21 and 22 of the Land Transport (Clean Vehicle Standard) Regulations 2022(external link)
To enable Waka Kotahi to assess against these five criteria, we need the following information from you:
A current credit rating from Moody’s, S&P or Fitch for your company (or your fully owned parent company) can assist in your application but is not compulsory.
The Waka Kotahi assessment process includes a credit risk evaluation. We’ll get in touch with you for more information if needed and keep you up to date with progress.
While we’re reviewing your application, you can still manage your vehicles in the Clean Car Standard system using your current Pay as You Go account.
Account compliance scheme changes will happen automatically on the approval of a Fleet Average application.
For applications approved throughout the year, account holders will need to accept any vehicles that had passed entry certification or Pre-Delivery Inspection (PDI) before the time the Fleet Average application was approved through the PAYG process and PAYG charges will apply. Any vehicles entry certified or given a PDI after the Fleet Average application was approved will be accepted as Fleet Average.
Credits earned whilst on PAYG will remain in the CO2 credit balance and be available to use for offsetting or trading as needed.
For applications approved during a calendar year, the Fleet Average annual account will be calculated as a partial year in the first year, from the date of approval to the end of the obligation year (31 December). Subsequent years will take into account all vehicles imported from 1 January to the following 31 December.
For more information on how to apply for Fleet Average see these additional resources:
