Call for changes to scheme
The Imported Motor Vehicle Industry Association (VIA) hopes the weight adjustment element of the clean car standard (CCS) may soon be removed after providing input into a government review of the scheme.
The Ministry of Transport (MoT) expects to provide advice to the government by the end of June on any potential changes to the CCS.
Simeon Brown, Minister of Transport, and his cabinet colleagues will then decide whether to alter the scheme’s carbon dioxide (CO2) emissions targets for new and used imports, and any other amendments to the legislation.
Greig Epps, VIA’s chief executive, told Autofile the review process has been useful and he hopes Brown will announce any alterations to the CCS by late July or early August.
“We support running the review now because it means if there are any changes to be made, these will happen in good time in the lead-up to 2025 and beyond,” he adds.
“We have always asked the ministry to provide indications as early as possible of any changes for what standards might look like.
“The biggest change we are wanting is the removal of the weight adjustment in the CCS assessment. We think that skews the market when trying to bring in vehicles that are below the targets to reduce overall fleet emissions.”
Epps, pictured, explains the current way CO2 targets for imports are weight-adjusted means a number of smaller, efficient vehicles with internal combustion engines (ICEs), such as the Suzuki Swift, attract penalties.
“We want to see the weight adjustment removed so we’re not penalising smaller vehicles with low carbon emissions,” he says.
“To be able to keep bringing in low-emissions vehicles, especially when our sector can’t bring in electric vehicles [EVs] because there aren’t many in the Japanese market available to us, would be a win.
“Hybrids are our go-to models for the next few years. But we need to ensure those smaller ICE vehicles aren’t penalised the same way as large vehicles because they can contribute to the carbon reductions we want to see.
“If you take that weight adjustment out, it produces a level playing field where efficient vehicles with smaller engines can help make carbon reductions.”
Epps notes if the weight adjustment isn’t ditched entirely by the government, there are indications the current method could be adjusted and subject to a further review in a couple of years.
He acknowledges this topic has generated some conflicting views between used and new importers, but says it is up to the government to find a solution that works best for the whole industry.
“I’ve specifically said to the ministry I’m not going to make this a fight between the new and used sector,” adds Epps.
“We both have markets to address and stakeholders with interests in bringing vehicles into the country. From a used imports point of view, we don’t think the weight adjustment works and we think it skews the market.
“If the ministry is receiving different signals from the new market, then it’s up to government to figure out where the balance is. It’s not up to our two sectors to do that.”
VIA has also advocated for disability vehicles to be exempt from the CCS, which it says makes sense as the vehicle exhaust-emissions rule does not apply to such models, and for emissions targets set for 2026 and 2027 to be less stringent.
“We are comfortable with where the targets are heading, but the slope for reducing those is currently very steep in the later years. We should pull those back a bit so we are not restricting the range of vehicles that can be brought into the country.”
“We want to continue to reduce emissions from the fleet, but at the same time acknowledge that vehicles need to be affordable and accessible to the broader population.”
Epps says MoT officials have done a “good job” in running the review process and have been open with VIA, listening and understanding the issues discussed.
Brown has advised VIA that as part of the budget urgency process at the end of May, when a number of bills were passed in parliament, laws have been adjusted to allow him to amend the CCS targets under secondary legislation.
“The minister has introduced measures to provide more flexibility to make any changes to those targets,” explains Epps. “This means after he receives the report from the ministry and decisions have been made by cabinet, he will be able to move quickly.
“Previously those changes would have needed to have been made in primary legislation, which requires a lot more time and effort on everyone’s behalf to get through parliament. Given it’s just the targets and not the whole CCS mechanism, it makes sense to have flexibility to move those targets.”
