How will the new clean car import standard work? Here is a basic – and changing – guide, taken from material released with the announcement and other standards.
Why the standard?
Currently, the light vehicles coming into the country are among the most fuel inefficient, and emission intensive, of any OECD country. The average vehicle in New Zealand has CO2 emissions of around 171 grams per kilometre (g/km). Our cars and SUVs alone average 161 g/km, compared to 105 g/km in Europe. In 2017, the most efficient vehicle models on our market had, on average, 21 percent higher emissions than their counterpart models in the United Kingdom.
New Zealand is only one of two countries in the OECD without a vehicle CO2 standard. The first target of 105g we are setting for 2025 was already achieved by Japan in 2014 and by Europe in 2020. On average, New Zealanders pay 65 percent more in annual vehicle fuel costs than people in the European Union, even though Europe’s petrol prices are higher.
How it will work
Each supplier will have a different target to meet, reflecting its fleet of vehicles. Across the vehicles it brings in it has to ensure the average CO2 emissions are equal to, or less than, the target for its vehicles.
As it works by averaging, vehicles exceeding the CO2 target can continue to be brought in so long as they are offset by enough zero and low emission vehicles. The 2025 target will be phased in through annual targets that get progressively lower. This gives vehicle suppliers time to adjust and source enough clean vehicles to meet the targets and to encourage buyers to opt for low emission vehicles.
Importers will be supported to meet the targets
Waka Kotahi will develop an online tracking and forecasting tool to allow importers to see how their CO2 accounts would be affected if they purchase particular vehicles in international auctions. It would also help importers complying on a fleet-basis by easily allowing them to monitor how their actual average fleet CO2 emissions are tracking, against their fleet targets.
Flexibility will be given for the industry by allowing them to bank, borrow and transfer. Banking will allow suppliers to carry over any overachievement of their CO2 targets to offset the following three years.
Borrowing allows suppliers to miss their targets for one year as long as they make it up the following year.
Transferring allows suppliers to transfer overachievement of their CO2 target to one or more other suppliers operating within the same compliance regime.
Penalties
While not officially released, AutoTalk understands the penalty for missing the emissions target for new vehicle distributors, per gram, will be $50 from 2023 and $75 from 2025. Used car importers will be charged half this amount.
Timeline for implementation:
2021: Legislation progressed and implementation starts.
2022: Standard in place. Suppliers must report CO2 data but no charges apply where
targets are missed.
2023: Charges apply where suppliers miss their targets.
2024: Review charges and the 2025 target. Set future targets.
Exemptions to the Standard
• Vehicles intended primarily for military operational purposes
• agricultural vehicles/equipment that are primarily driven on farms, such as tractors, harvesters, mowers, toppers, bailers
• vehicles with historic value, or vehicles such as classic cars
• motor vehicles constructed before 1 January 1919
• motor vehicles constructed on or after 1 January 1919
and are at least 40 years old on the date that they
were registered, reregistered, or licensed
• scratch built vehicles and modified vehicles certified
by the Low Volume Vehicle Technical Association Incorporated.
