The Irish Government’s 'green' car tax scheme came into force today, a measure that will calculate premiums by CO2 emissions.

The Environment Minister unveiled the scheme that will allow drivers to calculate how much they pay in Vehicle Registration Tax and motor tax, last month.

The new labelling system, launched by Minister John Gormley, hopes to encourage drivers to purchase cars with lower carbon emissions.

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This moves follows the Government's decision in the last Budget to tax cars, in the Republic, based on their emissions rather than engine size.

Seven levels of emission have been created in the new system; these will determine how much tax new car buyers will pay, from today. The rates range from 14% to 36%.

The colour-coded system will also be extended to new cars, showing the emissions of various vehicles, to help buyers make an informed decision.

(PR)