Politicians pass CCS changes
The government has passed legislation that will slash penalties for imported vehicles failing to meet clean car standard (CCS) targets, with the new fees applying from the start of next year.
Chris Bishop, Minister of Transport, announced a number of proposed changes to the scheme on November 17. They were voted in by parliament on November 20 after the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2) passed its third reading.
The three coalition parties – National, Act and NZ First – all voted in favour of the bill, while members of Labour, the Green Party, Te Pāti Māori and two independent MPs opposed it.
The new legislation will cut charges from a top rate of $67.50 to $15 per gram of carbon dioxide (CO2) for new vehicles, and from $33.75 to $7.50 for used imports, for 2026 and 2027.
Other amendments include protecting CO2 credits by ensuring none expire before December 31, 2028, and launching a full review of the CCS before recommendations go to cabinet by June next year.
The changes will come into effect from January 1, 2026.
Bishop says the government has acted quickly to put these temporary measures in place to avoid the risk of an estimated $264 million in net charges being passed on to households and businesses.
“The standard sets targets on vehicle CO2 emissions – imposing charges on high-emission vehicle imports, while awarding credits on imported low-emission vehicles,” he explains. “The emission targets progressively tighten every year, to continually lift fuel efficiency.
“However, right now the system isn’t working, with 86 per cent of importers unable to meet the standard without incurring additional charges on the vehicles they’re bringing in. The danger is that these extra costs will be added to vehicle prices.”
He adds this week’s changes will mean import penalties applied to many popular vehicles will be significantly reduced.
“Depending on how much of the charge the importer can offset and how they price their vehicles, Kiwis could avoid thousands on the price of their vehicle.
“These changes mean Kiwis can still upgrade to cleaner, more fuel-efficient cars, while giving us the space to make sure the standard is actually workable and delivers a long-term, sustainable path to lower emissions that fits New Zealand’s needs.”
