The Productivity Commission’s draft on the move to a low carbon emission economy through a Zero Carbon Act is a sound report on what lies ahead.
Toyota, which has nearly a quarter of all vehicles on our roads, takes its responsibilities to customers and the environment very seriously.
With transport emissions accounting for nearly 20% of all carbon output, we have a large influence on how New Zealand will progress to a zero-carbon economy.
This will not happen quickly.
A vehicle’s life-cycle is often between 30 and 40 years, so a model which Toyota starts planning now and introduces to the market in three or four years may not disappear from our roads until after 2050.
Toyota New Zealand has made several submissions to the Productivity Commission of New Zealand to achieve lower vehicle emissions.
These encourage lower emission vehicles to enter the national fleet, influence existing fleet demand and use, and encourage removal of high-emission vehicles.
New Zealand is a unique market.
In a record year for vehicle sales in 2017, there were 177,000 used imports registered here for the first time, along with nearly 160,000 new vehicle sales.
Strategies and policies need to take account of both types of vehicles.
Recently, New Zealanders have tended to buy larger vehicles as they become more fuel-efficient and as fuel prices have remained low compared to many other countries.
Feebate scheme
Introducing a feebate scheme that charges high emission vehicles and rewards low emissions is preferable to a policy of setting emission standards.
A feebate system is a way of pricing the real cost of emissions into people’s choice of motor vehicle.
As a new vehicle supplier, importing over 30,000 vehicles annually, we could meet a weighted average of emissions over time across the wide range offered.
But it would be difficult to apply emission standards to the many small businesses importing used vehicles.
A feebate scheme would encourage suppliers and consumers to adopt low-emission vehicles.
This has been successfully trialled and rolled out in other countries.
A complementary measure to a feebate system would be setting a maximum age for imported vehicles and periodically adjusting it – easy to administer.
Ministry of Transport statistics show the fleet’s average age in 2016 was 14.
1 years.In 2000 it was 11.8 years.
As technology has improved, newer vehicles produce fewer emissions.
Fuel pricing
Fuel prices should reflect the true cost of their environmental impacts.
History has shown consumer vehicle choice and usage is influenced by fuel price.
When the price goes up, people buy more fuel-efficient vehicles with lower emissions and use them less.
In Japan and Europe where fuel costs more, the sale of lower emission electric–petrol hybrid models make up 47% and 30% respectively of the market.
In the USA where fuel is cheap, hybrids comprise 10%; in New Zealand it is 4% of the fleet.
Toyota seeks further research into how fuel prices could encourage lower-emission vehicle uptake and how effects on low-income households could be mitigated.
Some European cities are banning diesel vehicles and considering the same with petrol vehicles as soon as 2030, although hybrids will be allowed.
It is difficult to mandate a date to do the same here.
We support the Government’s drive to increase EV uptake, but the technology is imported and global production limited.
We don’t know when the battery technology will be ready and an affordable vehicle range available to meet the needs of consumers increasingly using SUVs and light commercials.
Toyota New Zealand proposes a target percentage of the light non-fossil fuel vehicle fleet be set as a trigger point for when the Government would then consider mandating a date for phasing out fossil fuel vehicles with appropriate plans and policies.
New Zealand’s vehicle usage has been influenced by low urban population and the country’s elongated geography, so there is a higher proportion of private ownership and use.
We acknowledge the Productivity Commission’s report calling for more use of public transport, cycling and walking.
But roads still have to be maintained and improved to serve a growing population.
Road pricing nationally will be needed in coming decades to compensate for fuel tax income falls.
It can be used to help address congestion.
New technology makes road pricing increasingly affordable, and drivers can be charged electronically.
A carefully planned transition to road pricing is essential.
Mobility as a service has quickly become acceptable through Uber, Lyft and other ride sharing services.
While individual vehicle use will remain the predominant mode, encouraging the variety of MaaS models will remove some single-use vehicles and reduce emissions.
Scrapping old vehicles
Scrapping older high-emission vehicles needs to be encouraged.
The average scrapping age is 19 years.
Many older vehicles are owned by people on lower incomes.
Recently, the scrappage rate has slowed because mechanical longevity means vehicles are staying on the roads longer.
There is a public protection benefit to taking older cars off the road, as newer vehicles are equipped with superior safety technology.
Some countries have “cash for clunkers” schemes, but it has been expensive.
Alternatives could include charging scrappage cost in the vehicle price when it is first registered, the funds held in trust for the final owner when it is scrapped.
Annual licensing fees could be increased to encourage scrapping.
Or make warrant of fitness inspection more emissions related.
Difficult choices face New Zealand’s shift to a low-emissions economy.
Social equity and fairness issues have to be addressed, and political consensus and commitment from the Government and the motor industry is needed to be successful.
