Settings need to ‘reflect market’
The Motor Industry Association (MIA) has welcomed the government’s decision to retain the clean vehicle standard (CVS) and progress work to recalibrate its settings to better reflect the market in New Zealand.
It says the announcement by Chris Bishop, Minister of Transport, confirms the cabinet has agreed to retain the scheme for new and used-vehicle imports.
The government will also establish separate carbon dioxide (CO2) targets for used imports, recognising the older technology typically available within that sector’s supply pool.
The MIA’s chief executive, Aimee Wiley, says the decision is an important step towards establishing a more durable and effective vehicle-emissions framework for New Zealand.
Wiley, pictured, says: “The MIA has consistently supported retaining a regulated CVS while arguing strongly its settings need to reflect the realities of vehicles New Zealand motorists can afford, want and need.
“This decision responds directly to issues the MIA and our members raised through the stage-one review. We acknowledge the government and officials for engaging seriously with the data, evidence and industry expertise provided.”
The coalition found the standard remains the most cost-effective way to increase the availability of lower-emissions vehicles in this country, while also recognising its settings weren’t well-matched to market conditions.
The MIA notes the government has now committed to recalibrating those settings so they are realistic and achievable for industry.
It adds New Zealand is a small, fully import-dependent market. Vehicle technology and product availability are largely determined by global manufacturing, product planning and allocation decisions.
Wiley says this makes it important for future CVS settings to recognise both the technology available when a vehicle is manufactured and different characteristics of supply across the Kiwi market.
“A new-vehicle distributor sourcing current global production and a used importer sourcing vehicles manufactured for overseas markets several years earlier don’t have access to the same vehicles or technology pool,” explains Wiley.
“The same principle applies across vehicle segments. Technology availability, consumer requirements and the pace of transition aren’t uniform across the market.
“Good regulation needs to recognise those realities while continuing to drive measurable and durable improvement in vehicle emissions.”
The detailed future targets and settings will now be developed through the next stage of the review and are due to take effect from January 1, 2028.
The MIA believes the government’s focus on achievable settings provides a sound basis for work that reduces CO2 emissions and motoring costs while maintaining vehicle availability, affordability and consumer choice.
“This isn’t about stepping away from lower emissions,” says Wiley. “It’s about getting the settings right so the standard can deliver sustained emissions reduction in the real world.
“Kiwis motorists deserve access to the best and safest technology, and to the lowest emissions and most energy-efficient vehicles they can reasonably afford.”
The MIA and its members are ready to engage constructively with the government and officials as work on the future settings progresses.
The association will now turn its attention to the next phase, and the task of helping shape a durable and evidence-led CVS that works for New Zealand.
“Stage one sets the direction. Stage two is where the detailed work begins. Our members bring substantial vehicle data, technical expertise, market knowledge and global OEM insight to this process. We look forward to working constructively with the government and officials as future settings are developed.”
Wiley says the MIA’s objective remains a CVS that supports sustained emissions reduction while maintaining choice, affordability, availability and the continued renewal of New Zealand’s fleet.
