MTA backs scheme changes

The Motor Trade Association (MTA) is backing changes outlined in the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2).

The government announced plans last month to update what was previously known as the clean car standard (CCS), with carbon dioxide (CO2) emissions targets for cars and light commercials entering the fleet for the first time to no longer be adjusted for vehicle weight.

Carbon credits will become transferable between used and new-vehicle importers under the proposals, with the lifespan of credits being extended to four years.

Larry Fallowfield, the MTA’s sector manager for dealers, says amendments tabled by the coalition reflect a more pragmatic and flexible approach to achieving the country’s carbon-reduction goals. 

“By extending credit lifespans, allowing credit trading between new and used importers, and removing the weight adjustment, the bill better aligns with the realities of vehicle supply and consumer demands in New Zealand,” Fallowfield, pictured, told Autofile Online. 

“These changes will help reduce costs, improve market efficiency and maintain momentum towards a lower-emissions fleet.

“We welcome the removal of the weight adjustment. As the New Zealand market continues its drive to hybrid, plug-in hybrid and battery-electric vehicles, the connection between emissions and weight doesn’t tell the full story, especially when you see small low-emissions vehicles being penalised.

“Our members have shared feedback that some vehicles they were bidding on in Japan have incurred additional costs due to inequities in the weight-adjustment system, making them uneconomical to import.

“Examples are cars that are at the low end of the market with small engines. Low emitters are incurring additional costs. This is disadvantaging low-income families.

“The higher increases in cost of the current scheme will only add to our emissions problems as more people hang onto older higher-emitting vehicles for longer.”

Fallowfield notes the ability for new and used importers to trade credits will also be a positive step. 

This is because it will create a more dynamic and fair compliance environment, allowing businesses to manage their obligations more effectively and encouraging broader participation in the CCS programme.

Issues on the flipside

While the MTA supports the overall direction of the bill, it will continue to raise concerns about the age and condition of the fleet.

“With more than 40 per cent of our in-service fleet being over 15 years old, we need to be thinking about how we limit the age of the cars coming into the country – not just the emissions they produce,” says Fallowfield.

“The bill could go further in supporting smaller, later model, low-emissions used imports. The MTA is currently getting significant work done to look at the fleet and will be developing data-driven policy from there.

“Lowering the age of our fleet would align with our emissions-reduction goals and see cleaner vehicles using our roads.”

Submissions on the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2) close on September 26. The transport and infrastructure select committee is due to report back to parliament just before the Christmas break.