Key changes were made to New Zealand’s Land Transportation Act, which focused on the Clean Car Standard. Now called the Clean Vehicle Standard, the changes, according to the Ministry of Transport, aim to make it easier for the government to update the regulations without going through a lengthy parliamentary process.
Faster Updates to CO2 Targets
Previously, CO2 targets were set until 2027 and required a full parliamentary process to change. Now, the Minister of Transport can adjust these targets with Cabinet approval, speeding up the process and giving the vehicle industry more certainty.
This streamlined approach is designed to help the government quickly implement new targets, which is important for keeping up with environmental goals and market needs.
New Costs for Dealers and Consumers
The second big change involves how the CVS is funded. Currently, the system costs $11 million a year, but this is expected to drop to between $3 million and $6.3 million. Instead of the government covering these costs, the NZTA (New Zealand Transport Agency) will now pass them on to vehicle importers and consumers.
According to the amendments, there are two ways this could work. The first one is the fixed fee model where costs are between $3 million and $6.4 million per year, and about 300,000 vehicles are imported annually, the fee would be $10 to $21 per vehicle. The second is the cost per importer fee which would charge each importer between $3,000 and $6,400 per year, but this model is considered less fair because importers vary in size.
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