The Shenzhen government plans to start charging a vehicle emissions fee before the end of the year, according to reports in the Shenzhen Special Zone Daily on May 3.

The report said the latest government communique unveiled an environmental improvement action plan for the city.

Under the plan, the Shenzhen Development and Reform Commission will formulate a policy to levy an emissions fee on vehicles, according to engine size, by the end of the year. The commission will also be responsible for policies to encourage the use of new-energy vehicles.

According to the plan, from July 1, 2013 newly registered diesel-engine vehicles in Shenzhen, including those owned by visitors from other cities, must conform to IV standard diesel, thereby reducing tail gases by 23,000 tons. It also says that the city will attempt to apply the V standard to all newly registered cars by 2015 and reduce tail gases by 59,000 tons.

The V standard is China’s toughest on vehicle emissions, and limits emissions of nitrogen oxide to 0.06 grams. The IV standard has an emissions limit of 0.08 grams.

Statistics from the Shenzhen Transport Commission show that the city now has more than 2 million cars, placing it second only to Beijing.