CCS reset to bring ‘relief’

Association says previous emissions targets posed threat to light vehicle industry’s future. 
Posted on 11 July, 2024
CCS reset to bring ‘relief’

The Motor Industry Association (MIA) has voiced its strong support for the government’s decision to align the annual clean car standard (CCS) emissions targets with Australia's. 

It describes the change, which covers 2025-29, as a positive and necessary step for the industry and everyday Kiwis. 

Aimee Wiley, chief executive officer, says: “New Zealand’s emission targets cannot outpace those of our supply markets without imposing financial burdens on consumers. 

“Everyone loses if future targets exceed what two-thirds of new vehicles can meet. Consumers will face higher costs due to penalties and emission targets will remain unmet.” 

She adds resetting the carbon dioxide (CO2) targets will provide much-needed relief for the light vehicle industry in New Zealand. 

Earlier this year, the MIA was among industry stakeholders to work with Ministry of Transport officials to review the CCS. 

The association’s detailed modelling and analysis showed the previous targets were too stringent for the majority of the new vehicle industry to achieve and without change, these “overly ambitious targets” threatened the industry’s future. 

Wiley, pictured, says the government’s decision to reset these targets shows an understanding of the industry’s challenges and a commitment to finding a better balance. 

“Achieving future emission targets will require an adequate supply of, and demand for, a wide range of zero and low-emission vehicles,” she continues. 

"In the next three to five years, zero and very low-emission vehicles will become more widely available across all segments. The industry is ready to supply these vehicles in volumes that match consumer demand. 

“Therefore, the pace of achieving our emission targets now depends more on Kiwi consumers choosing the cleanest, newest and safest vehicles they can afford.”

The MIA notes its recommendation to reset future emissions targets does not mean weakening them or compromising environmental goals. 

In a statement released on July 10, it describes decarbonising the light vehicle fleet as a marathon, not a sprint, and says CCS targets should reflect this. 

It proposes resetting New Zealand’s ambition and pace of change to follow, rather than lead, in global stringency. 

“Aligning more closely with Australia regarding timing, standards, technology, and emission targets is a sensible approach to support the industry’s future success better and achieve our environmental goals,” the MIA adds.