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Fears bill will ‘gut’ clean car standard

Concerns as government seeks to introduce amendments under urgency that will change how targets can be set.
Posted on 27 June, 2024
Fears bill will ‘gut’ clean car standard

Advocates for electric vehicles (EVs) fear a bill being pushed through Parliament this week under urgency will weaken the clean car standard (CCS) and lead to New Zealand becoming a dumping ground for “old gas guzzlers other countries don't want”.

The Better New Zealand Trust, which is a member of the Global EV Alliance, also warns the government’s action will push up petrol bills for Kiwi families.

The CCS kicked in at the start of 2023 and sets targets for emissions from new and used imported vehicles that tighten over time. Importers of high-emissions vehicles incur charges, while those at the other end of the scale gain credits.

At the end of May, the government introduced the Land Transport (Clean Vehicle Standard) Amendment Bill, which would allow it to repeal CCS targets currently set until 2027 and permit the Minister of Transport to set new ones without public consultation.

The bill has had its first and second reading in Parliament this week as the house sits under urgency and the coalition aims to have it complete its third reading today – June 27 – and pass into legislation.

Kathryn Trounson, pictured, chair of the Better NZ Trust, says it is already unhappy the Ministry of Transport (MoT) has been “talking behind closed doors” with vehicle manufacturers for a review of the CCS ordered by the minister this year.

“Now, the government is pushing through a law designed to gut the clean car standard,” she adds. “That would remove the penalty for importers who bring in gas guzzlers and undercut importers of efficient vehicles.

“Since the clean car discount [CCD] was removed, the average emissions of new imports has shot up. EV sales have plummeted and importers are focusing on inefficient models instead.

“The clean car standard is the one tool remaining to force importers to focus on more fuel-efficient vehicles. If the government weakens the standard for future years, it will mean higher petrol consumption and higher emissions.”

Trounson says lowering the CCS targets will result in more vehicles with internal combustion engines coming into the fleet and staying on the road for decades.

The trust estimates four years of a frozen CCS will result in 3.5 billion more litres of petrol and diesel being consumed by those new imports over their lives, which it adds will cost Kiwi families and the country billions.

“The future of transport is electric, which will save New Zealand billions each year in oil imports and reduce our emissions,” continues Trounson. “But this government seems determined to drag us back into the past.”.

Average emissions up

Drive Electric is also keen to see the existing CCS targets remain in place and for public consultation on the MoT’s review of the scheme before the government makes any potential changes.

Kirsten Corson, chair, says since the CCD was axed at the end of 2023 the average emissions of newly registered light vehicles has increased from 136g/km last year to 161g/km in the first five months of 2024. 

She adds consumer demand for EVs has dropped as a result of the government ditching the CCD and it was now attacking the supply side through the CCS, reports BusinessDesk.