The new green tax of 1.5 centimes will be levied on every liter of petrol and diesel in the land-locked country as a measure to reduce environmentally harmful greenhouse gas emissions through encouraging lower consumption and using the income to tackle the issue. The Swiss government believes it will reap 100 million Swiss Francs from the levy.

The new tax will come into force on the first day of October having been officially signed into law by the environment and energy ministry of Switzerland and the foundation for a climate tax this week.

The new tax is part of the Swiss government’s increased efforts to reduce CO2 emissions in order to meet agreed Kyoto accord limits. Currently Switzerland is in danger of failing to meet its pledge to reduce CO2 emissions by 1.8 million tons a year between 2008 and 2012.