South Africa instituted an ad valorem CO2 emissions tax on new passenger vehicles in 2010. The emissions tax applies initially to passenger cars but will be extended to commercial vehicles once agreed CO2 standards for these vehicles have been set. The main objective of this emissions tax is to influence the composition of South Africa?s vehicle fleet to become more energy efficient and environmentally friendly, while generating an estimated R1 billion in revenue. Improvements in outdoor air quality associated with reduced pollution, reductions in greenhouse gas emissions from new passenger vehicles, as well as increased incentives for purchasing fuel-efficient passenger and commercial vehicles are expected.