New South Wales drivers can choose to offset their vehicle's carbon emissions annually — at a cost of about $80 — when registering their car.
Energy Minister and Treasurer Matt Kean this morning said the money would go directly to projects which reduce or offset CO2 emissions in the country, a gas which drives climate change.
One of these projects include a regeneration scheme in the Bourke and Brewarrina shires growing native forest on cleared land.
It costs about $80 to offset emissions from an average car, but drivers can choose to donate $5 to $200 annually during the online registration process, he said.
Mr Kean said the new scheme would help Australians to reduce their carbon footprint in a practical way.
"The transport sector is responsible for 22 per cent of all NSW emissions, with almost 50 per cent coming from passenger vehicles," Mr Kean said.
"For those people that can't afford electric vehicles ... they can choose to offset their emissions."
But he made a point that the contribution was not mandatory.
"Were not forcing anyone to do anything," Mr Kean said.
"Were really excited about it … this is an opportunity for people to do their bit for the environment … and also deliver great things for our economy."
He said drivers would be able to track the funded projects offsets through an online register.
The move is part of the government's commitment to reach net zero emissions by 2050.
While the treasurer initially stated the program was an Australian-first, Queensland had a short-lived but almost-identical scheme in place from 2009.
The "Reverse the Effect" policy gave motorists the option to offset carbon emissions through a voluntary payment that was matched by the government.
It only lasted for two years and is no longer on offer.
In December last year, the NSW government boosted its commitment to reduce emissions by 70 per cent in 2035, compared to 2005 levels.
Corporate Carbon Advisory Pty Ltd has been appointed as the offset provider partner.
