CO2 targets must be ‘realistic’

Keeping the clean vehicle standard (CVS) for new and used imports is the right decision and the next step must be to make the targets achievable.

That’s the response of the Motor Trade Association (MTA) to the government deciding to retain the scheme.

James McDowall, pictured, the MTA’s head of advocacy, says the association has consistently made the case that a carbon dioxide (CO2) standard for cars is worth retaining.

“We were pleased to be part of stage one and MCERT has acknowledged member input helped inform the decisions cabinet reached,” he says.

In addition to retaining the CVS for new and used imports, the cabinet has also agreed to establish separate CO2 targets for used-vehicle imports. 

These targets will be developed as part of the upcoming stage-two review. McDowall says: “There is a lot in this that we welcome.

“We have long argued it would be remiss not to have a standard. It remains the last policy lever we have to influence vehicle CO2 emissions. 

“It stops New Zealand becoming a destination for less fuel-efficient, higher-emissions vehicles that cost our customers more to run. Retaining the standard for new and used imports keeps that lever in place.”

The MTA had called for exactly what stage two of the review will consider. And that’s whether the CO2 targets reduce emissions and motoring costs faster while remaining achievable for the automotive industry as well as maintaining vehicle availability, affordability and choice for consumers.

McDowall emphasises: “Achievability and certainty for the industry are now central to the next phase of work, which is what we asked for.”

The MTA had argued that used imports don’t need to be treated differently under the CVS. The cabinet has instead decided to establish separate CO2 targets for this sector.

“We will be engaging with officials to ensure any separate targets are grounded in market realities, don’t disadvantage the used-import channel, and continue to protect affordability and choice for motorists,” adds McDowall.

“To date the standard has succeeded in shifting the vehicle mix towards hybrids. The test now is whether the next set of targets stays realistic.”