NSW drivers given option to purchase carbon offsets during vehicle registration

Motorists in New South Wales are now the first in Australia with the option to purchase carbon offset credits as part of their vehicle’s registration.

Available for motorised light vehicles with a gross vehicle mass of 4.5 tonnes or less, the offset scheme allows owners to nominate a non-refundable amount between $5 and $200, which is used to purchase the credits and added onto their registration receipt.

The initiative aims to offset CO2 emissions for NSW’s transport sector – one of the state’s most polluting – during what the Government sees as a transitional period as motorists move towards EVs.

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“The transport sector is responsible for about 22 per cent of all NSW emissions, with almost 50 per cent coming from passenger vehicles,” Treasurer and Minister for Energy Matt Kean said.

“More and more NSW drivers are opting for EVs each year, however this scheme gives those drivers who haven’t made the switch yet the option to offset their emissions instead.”

An average car in Australian generates roughly 2.4 tonnes of CO2 each year, which the NSW Government states can be fully offset with just $80 of carbon credits.

The NSW Government claims the offset scheme will help NSW reach its targets of 70 per cent emissions reduction by 2035 and net zero by 2050.

The NSW Government has appointed Corporate Carbon Advisory, a privately-owned company also used by the Australian and Queensland Governments, as the offset provider. All carbon offset projects will be Australian, with no international credits to be purchased, according to Mr Kean.