Annual updates to synthetic greenhouse gas levy rates

The carbon price and levy rates for goods and motor vehicles have been updated.

For the levy rates, see part 5 of the Climate Change (Synthetic Greenhouse Gas Levies) Amendment Regulations 2024 [New Zealand Legislation website].

Levy rates for 2025 are lower than in 2024 due to decreases in emission unit prices.

Amendment regulations for the NZ ETS are generally completed before the end of September each year and are published in the Notice Under the Legislation Act 2019 – 2024-sl4747 [New Zealand Gazette website].

A levy is used to set an emissions price for synthetic greenhouse gases (SGGs) in imported goods and vehicles rather than having an obligation under the NZ ETS. Using a levy decreases administration and compliance costs and increases the certainty of the emissions cost for businesses importing goods containing SGGs.

The SGG levy is based on the amount of SGG contained in an item, the global warming potential of the SGG, and the average price of emission units surrendered in the NZ ETS.

A range of goods are listed in Schedule 2 of the Climate Change (Synthetic Greenhouse Gas Levies) Regulations 2013 [New Zealand Legislation website], differentiated by type and quantity of SGG it contains. The levy rates are updated every year to align with the prevailing market price for emission units in the NZ ETS.

The person who registers a leviable motor vehicle is responsible for paying the levy to the New Zealand Transport Agency. The levy on motor vehicles applies when a motor vehicle is first registered for on-road use in New Zealand.

The levy on all other goods that contain HFCs and PFCs applies at the point of import and is collected by the New Zealand Customs Service from the person who imports the goods.

There are exemptions for household goods and effects of passengers on a ship or aircraft.