Changes ahead for standard

The government has announced plans to update the clean vehicle standard, with emissions targets for imported passenger cars and light commercials set to no longer be adjusted for vehicle weight.

Carbon dioxide (CO2) credits will become transferable between new and used vehicle importers under the proposals and the lifespan of credits will be extended to four years.

The changes are included in the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2), which passed its first reading on August 21 and is now open to public consultation.

Submissions close on September 26 and the transport and infrastructure select committee is due to report back to parliament on December 22,

Chris Bishop, Minister of Transport, says the measures in the bill will give importers greater flexibility in how they meet annual CO2 targets and ensure consumers Kiwis can access more fuel-efficient cars.

“The government will allow credits to be transferred between used vehicle importers and new vehicle importers,” he explains. 

“To reflect the greater fuel-saving potential of new vehicles over their lifetime, importers will need two credits earned on used vehicles to offset a charge on a new vehicle.

“We are also extending the lifespan of credits from three years to four. To allow importers to respond to the market they will be able to offset their charges from one year by supplying and selling more low-emission vehicles the following year if conditions improve.

“Finally, we are enabling CO2 targets to be set that are not adjusted by vehicle weight. 

“The relationship between vehicle weight and emissions is breaking down. It used to be that heavier cars would often have higher emissions but as more hybrids and EVs have entered the market that is no longer the default assumption. 

“A weight-based approach was only designed to be temporary.”

Bishop, pictured, notes the changes to the standard will give importers more flexibility in how and when they comply with the targets, which is critical as importers have little control over market factors such as supply and demand conditions.

“Overall, the improvements will support importers to bring in vehicles that are more fuel efficient and cheaper for Kiwis to run,” he says.

“The government supports the clean vehicle standard to ensure that New Zealand has an affordable mix of clean vehicles. 

“This works by imposing charges on importers who bring in too many high-emission vehicles, while awarding credits to those who import more low-emission vehicles.

“When importers don’t meet the targets, they’re more likely to pass on costs to Kiwi consumers. When importers do meet the targets, there’s no need to pass on the charges. 

“We are making it more flexible for car importers to achieve their targets so less costs are passed onto Kiwis buying cars.”