Minister defends clean car plans

The Minister of Transport has defended the government’s clean car policies after the Motor Industry Association (MIA) withdrew its support for plans designed to cut emissions from the light vehicle fleet.

Michael Wood says the targets outlined in the Land Transport (Clean Vehicle) Amendment Bill, which is currently going through parliament, aim to stop New Zealand becoming a “dumping ground for the world’s dirtiest cars”. 

His remarks come in response to a statement from the MIA on September 17 that criticised the government for an “appalling lack of understanding” in creating a bill it says will increase costs for new-vehicle distributors, raise sticker prices for new cars and fail to effectively reduce transport emissions.

The bill, which will allow the introduction of a clean car standard, has had its first reading in parliament. It proposes new cars entering the fleet must average 112.6g of carbon dioxide (CO2) per kilometre in 2025, with that level dropping to 63.3gCO2/km by 2027. 

The current average for the new-vehicle industry, according to the Ministry of Transport, is 171gCO2/km.

Wood, pictured, says in a statement he will continue dialogue with the MIA through the Clean Car Leadership Group and on other matters about increasing the uptake of low-emissions vehicles. 

“I’m sure they will engage constructively through the select committee process as well, although my understanding is they’ve never supported the standard’s targets, so it’s surprising they are saying they are withdrawing support,” he adds.

“It’s important to note that countries like the UK and Norway are banning the sale of petrol and diesel vehicles between 2025 and 2030, so we have to move quickly to stop us becoming a dumping ground for the world’s dirtiest cars.

“The New Zealand 2025 target has already been met in some other jurisdictions like Japan and the EU, so we know it’s achievable.”

Wood continues that the clean car standard applies to what fleet importers bring in annually and it will be the average emissions of that fleet that is measured. 

“We have made adjustments to the clean car import standard to help the industry shift gears and they’ll be given flexibility by allowing them to bank, borrow and transfer achievement of the annual targets,” he explains.

“Banking will allow suppliers to carry over any overachievement of their CO2 targets to offset the following three years.

“Borrowing allows suppliers to miss their targets for one year as long as they make it up the following year.

“Transferring allows suppliers to transfer overachievement of their CO2 target to one or more other suppliers operating within the same compliance regime.”

He says the targets for 2026 and 2027 have been provided to give the industry more time to undertake the changes necessary to decarbonise the fleet and help the government meet its climate goals. 

“It’s not correct to say they can only be met by suppliers that exclusively sell EVs. It does however rely on suppliers have an increasing proportion of EVs, or, if they don’t, trading credits with those that do. 

“We have already seen an increase in the range of low-emissions vehicles being offered and promoted in New Zealand in the first few months of the clean car discount and I expect this will continue.”

The MIA is also critical of the bill requiring all vehicles manufactured from January 2022 to be tested using the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) protocol, or if that is not available the American EPA test.

Wood says he has been given recent advice on this matter and will respond to the MIA shortly.

Political response

National’s Transport spokesman David Bennett says the MIA’s withdrawal of support for the proposed clean car standard is more reason for Wood to ditch those plans.

“The MIA has told Minister Wood the same thing transport officials told him in December last year – his proposed targets and fines are far too strict and will do nothing more than act as another car tax,” explains Bennett.

“Labour needs to drop this bill urgently. Now is not the time to be stinging Kiwis with new taxes."

Meanwhile, Simon Court, ACT’s transport spokesman, describes the bill as “virtue-signalling nonsense” and a “sneaky revenue grab on New Zealand motorists”.

“The Motor Industry Association has pointed out that the bill deviates from reality by setting standards so steep to that only distributors of battery electric vehicles could reach them in the time span set by the bill,” adds Court.

"This puts New Zealand out of step with comparable countries, even if the policy would result in lower emissions.”