Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Govt proposing to make clean cars cheaper

Hon Julie Anne Genter

Associate Minister of Transport
9 July 2019 PĀNUI PĀPĀHO


Govt proposing to make clean cars cheaper to tackle climate change

The Government is proposing to make electric, hybrid and fuel efficient vehicles more affordable so New Zealand families can choose a vehicle that’s better for the climate and their back pocket.

“The cars, utes and vans we use every day are also the fastest growing source of harmful climate pollution and account for nearly 70 percent of our transport emissions,” said Associate Transport Minister Julie Anne Genter.

“Most Kiwis want to buy a car that’s good for the environment, but tell us the upfront cost and limited choice makes it a challenge.

“This is about making cleaner cars a realistic choice for more New Zealanders – by reducing the upfront cost of electric, hybrid and fuel efficient vehicles when sold in New Zealand for the first time.

“Discounts will be financed in the fairest way possibly - by putting a small fee on the highest polluting vehicles when they’re sold in New Zealand for the first time. This means people will still have choice, while contributing to the task of cleaning up the vehicles coming into New Zealand.

“New Zealanders have also told us they want more climate-friendly vehicles to choose from, so we’re also proposing that vehicle suppliers be required to import more fuel-efficient vehicles every year.

“Vehicles already registered in New Zealand would be exempt from these policies when on-sold in the second hand market – so more than 70 percent of vehicles sold each year won’t be affected by these proposals.

“These changes would prevent more than 5 million tonnes of dangerous climate pollution going into our atmosphere and would make a major contribution to meeting New Zealand’s climate targets.

“The benefits of these policies would flow on into the second hand market as more fuel efficient hybrid and electric vehicles are sold on.

“These policies are expected to save the country more than $3.4 billion in fuel and result in fuel savings of more than $6,800 over the lifetime of an average vehicle”.


The Government will consult from 9 July to 20 August on two new policies to improve fuel efficiency and emissions profile of light vehicles entering the New Zealand market

Light vehicles include small and medium cars, SUV, vans and utes. They do not include motorbikes or heavy vehicles like trucks.

The two policies are the ‘Clean Car Discount’ and ‘Clean Car Standard’.

The policies would only apply to new and used light vehicles entering New Zealand for the first time. They would not apply to vehicles already registered in New Zealand when on-sold. 74 percent of annual vehicles sales are of vehicles already registered and these would not be affected.

The Clean Car Standard is a vehicle fuel efficiency standard. It would require vehicle importers to reduce the average emissions of the vehicles they are importing (both new and used) by meeting an annual emission target. Emissions targets would be phased in gradually. In 2021, vehicle suppliers would be required to report the emissions of the vehicles they import, in 2022 the average emission target would be 161g CO2/km with stricter targets each year out to 105g CO2/km in 2025. Targets beyond 2025 would be set by future governments.

The targets would be weight adjusted so that smaller vehicles would have to meet stricter targets than heavy vehicles like utes.

The 2025 105g target is consistent with the average vehicle fuel efficiency achieved in the Japanese vehicle fleet in 2014 (Japan is our largest source of used imports). In 2018, the average vehicle imported into New Zealand emitted around 180 gCO2/km (2018).

The economic evaluation shows the benefits of the Clean Car Standard outweigh the costs 3 to 1. The majority of the economic benefits are to motorists who will save of $6,800 per vehicle, and $3.4 billion collectively over the lifetime of the vehicles affected. It is estimated that it would reduce emissions by 5.1 million tonnes.

The Clean Car Discount

The Clean Car Discount is a scheme designed to reduce the cost of low emission vehicles. The scheme offers discounts on low emission vehicles and places fees on high emission vehicles at the point of sale.

It is proposed that the Clean Car Discount begins in 2021 as the exemption on Road User Charges for electric vehicles is due to expire.

For the first year, in 2021, the government is proposing discounts of up to $8,000 for zero-emission new imported vehicles and a fee of up to $3,000 for new imported vehicles that emit in excess 250 grams of carbon dioxide per kilometre (CO2/km). For imported used vehicles the highest available discount would be $2,600 (for zero-emissions) while the highest fee is $1,500 in 2021.

Vehicles with a recommended retail price of over $80,000 would not be eligible for any discounts.

The economic evaluation shows economic benefits of the Clean Car Discount out weight the assumed cost 2.6 to 1. It is estimated that motorists would save about $5,200 per vehicle and $627 million collectively on fuel over the life of the vehicles affected.

Example fee and discount schedule in 2021

New vehicles

For new vehicle imports in 2021, this schedule would result in discounts of up to:

• $8,000 for electric vehicles (EVs)

• $6,800 for some plug-in hybrid electric vehicle (PHEVs)

• $4,800 for some hybrids

• $2,800 for some very fuel efficient vehicles.

Used vehicles

For used vehicle imports in 2021, this schedule would result in discounts of up to:

• $2,600 for EVs

• $2,300 for some PHEVs

• $1,700 for some hybrids

• $1,100 for some very fuel efficient vehicles.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Not Buying What Todd Muller Is Selling

Chloe Swarbrick is number three in the Greens Party list released this morning. Todd Muller has released his new party line-up today, which will excite everyone who still wants to know what Gerry Brownlee and Judith Collins will be up to in future. Wider point being : Swarbrick is a household name after three years in Parliament, and has been steering our cannabis laws towards a national referendum at this year’s election. Todd Muller has spent twice as long in Parliament as Swarbrick and yet – until last week – no one beyond his immediate family and friends had ever heard of him... More>>


National: "Todd Muller Announces Shape Of Next Government"

National Party Leader Todd Muller has announced the line-up of the next Government. “New Zealand is facing perhaps the toughest time that almost anyone alive can remember. “We are borrowing tens of billions of dollars to get us through this crisis. There ... More>>


Lockdown Rules: Timeline For Moving To Level 1 Needed

The BusinessNZ Network is calling for more clarity about the conditions under which businesses can move to Covid level 1. The network is concerned about large numbers of businesses that are at risk of closure if restrictions continue at the current ... More>>

Gordon Campbell: On National’s Day Of Reckoning

Congratulations. You are one of the 55 members of the National caucus being called together tomorrow to choose who will lead you to either (a) catastrophic or (b) honourable defeat on September 19, thereby saving some (but not all) of the jobs currently on the line. Good luck. Your decision process starts NOW... More>>


Budget 2020: Jobs Budget To Get Economy Moving Again

Investments to both save and create jobs in Budget 2020 mean unemployment can be back to pre COVID-19 levels within two years and could see the economy growing again as early as next year. More>>


Covid-19 Response: Law Setting Up Legal Framework For Covid-19 Alert Level 2 Passes

The law establishing a legal framework for the response to Covid-19 has passed its final reading and will become law in time for the move to Alert Level 2 tonight.
This is a bespoke Act designed specifically to stop the spread of COVID-19... More>>


ACT: Parliament Quits MP Cut Pay Debate To Go Home Early

“In an outrageous move, Parliament has today passed voluntary MP pay cuts and avoided any debate over whether to make them compulsory and transparent”, says ACT Leader David Seymour.... More>>


Trans-Tasman Bubble: PMs Jacinda And Morrison Announce Plans

Australia and New Zealand are committed to introducing a trans-Tasman COVID-safe travel zone as soon as it is safe to do so, Prime Minister Rt Hon Jacinda Ardern and Prime Minister the Hon Scott Morrison MP have announced... More>>


The Dig: Steady State Economics: We’ve Got Some (systems) Thinking To Do

In this time of impending economic and ecological crises, we urgently need to aim for a sustainable or ‘steady state’ economy. In order to get there, we will need to adopt a ‘systems-thinking’ outlook taking into account the interconnections of our complex world.

In short, we’ve got some systems thinking to do... More>>


Election 2020: Parties Get Into gear

The Green Party is pleased to reveal its candidate list for the upcoming election. With a mix of familiar faces and fresh new talent, this exceptional group of candidates are ready to lead the Greens back into Government. Using the most democratic list ... More>>


Insight Into Regenerative Agriculture In New Zealand

There is a fast growing movement in New Zealand that has been happening out in paddocks, fields, gardens and hill country across the nation. It is a movement that holds the promise to reshape our productive land use industries towards systems that work with the natural environment to regenerate the land. The movement is that of regenerative agriculture. More>>


Covid-19: Tracer App Released To Support Contact Tracing

The Ministry of Health has today formally released the NZ COVID Tracer app to support contact tracing in New Zealand. Kiwis who download the app will create a digital diary of the places they visit by scanning QR codes displayed at the entrances to ... More>>


Gordon Campbell: On The Dodgy Politics Of Easing Level 3

As countries around the world tentatively emerge from lockdown, a lot of political noise is being generated by politically-driven arguments that (a) the safeguards need to be lifted faster and (b) the lockdown itself was an over-reaction likely to leave lasting economic damage in its wake... More>>


National: No Show By Treasury Shows Govt In Full Dismissal Mode

Treasury’s last minute decision not to bother showing up at the Epidemic Response Committee shows an arrogant Government that’s happy to dismiss scrutiny, National’s Finance spokesperson Paul Goldsmith says. “Treasury Secretary Caralee McLiesh was ... More>>


Govt: Concern At Introduction Of National Security Legislation For Hong Kong
Foreign Affairs Minister Winston Peters says the New Zealand Government has reacted with concern at the introduction of legislation in China’s National People’s Congress relating to national security in Hong Kong... More>>






InfoPages News Channels