Prime minister Jacinda Ardern has confirmed new average emissions standards for light vehicles, a move likely to change the vehicles Kiwi’s can purchase to a level not seen since the importation of used vehicles was opened up in the 1980s.
The announcement confirms the ‘clean car standard’, now called the ‘clean car import standard’, will require importers both new and used to move towards a target of average emissions of 102grams for cars and SUVs, and 132g for Utes, vans and larger 4X4 vehicles by 2025. The overall target is 105g.
Recording will begin in 2022, with charges for missing the target from 2023. Used vehicle importers will have lower penalties than new car importers.
“Transport makes up our second highest amount of emissions after agriculture, so it’s important we reduce emissions from our vehicle fleet,” Ardern said in today’s announcement.
“The Import Standard will prevent up to 3 million tonnes of emissions by 2040, mean more climate-friendly cars are available, and will give families average lifetime fuel savings of nearly $7,000 per vehicle,” Transport minister Michael Wood explained.
“The Government will also consider options for an incentive scheme to help Kiwis make the switch to clean cars. The Government will have further announcements on our plan to reduce transport emissions in the coming months,” Wood said.
While generally supportive of emissions controls, the Motor Industry Association raised concerns in a statement this morning that the announced plan does too fast.
“While we believe the fuel economy standard is necessary, the speed at which we must reach the average target of 105 grams of CO2 per km is the most aggressive and severe in the world,” the statement from chief executive David Crawford says. “No other country has ever had to face a 40% rate of reduction in five years that we now must meet.”
“We urge the Government to amend the target date to 2030.”
“Contrary to the views of Government, the 2025 target date does not allow time for model development, vehicle sourcing arrangements and does not recognise that for many distributors in New Zealand their model choice is tied to the Australian market. With no similar policy required in Australia, our market, which represents just 0.018% of new vehicle production in any one year, is too small for manufactures to develop models just for us.”
“We also urge the rules to be the same for both new and used imported vehicles. Giving used imported vehicles softer penalties will lead to an increase in older, less safe vehicles entering New Zealand.”
EV lobby group drive electric backed the announcement, but calls for more.
Mark Gilbert, chair of Drive Electric says, “The standards being proposed for 2025 have already been met in other comparable markets, like the EU and Japan, and must be achievable here.”
“The standard is a useful tool in that it asks importers to look at the portfolio of vehicles they are importing, which should increase low emissions choice across a range of vehicle types and price points. With more EVs coming into New Zealand, this also increases the second-hand market over time.
“That said, such a standard is really just a first step towards managing a transition away from fossil fuel vehicles and towards no emissions vehicles.”
“To meet New Zealand’s legislated climate ambitions, to keep warming within 1.5 degrees celsius, our analysis shows we need to aim for at least 250,000 EVs on the roads by 2025, and for this trend to continue through to 2030.
“Firstly, we should look at announcing a date by which we end the importation of fossil fuel vehicles into New Zealand, entirely. This has been done in many other markets around the world, including the United Kingdom.
“Policies that need to be considered include incentives, adjustments to fringe benefit taxes and depreciation, and investment to ensure we are ready for more at-home charging and public charging.”
