The New Zealand government is considering whether to retain, modify, or potentially scrap the Clean Car Standard as part of a broader review of vehicle emissions policy.
Transport Minister Chris Bishop confirmed the government is conducting a “first principles” review of the scheme, which could result in changes to the current policy framework.
Consultation examines possible abolition
Introduced by the previous government, the Clean Vehicle Standard requires vehicle importers to meet emissions targets across the vehicles they bring into the country. Importers that exceed those targets must pay penalties, although they can offset those costs by importing lower-emission vehicles.
The government reduced those penalties by nearly 80% in November 2025, with Bishop saying that supply constraints were making it difficult for importers to source enough low-emission vehicles without increasing prices for consumers.
A consultation carried out as part of the review recently closed and included input from the motor vehicle industry, government agencies, international organisations and advocacy groups. The process asked submitters whether New Zealand should continue to have a fuel-efficiency standard and what the risks might be if it was abolished.
The public was not invited to participate in the consultation.
EV advocates warn of higher-emitting imports
Electric vehicle advocacy group Drive Electric expressed concern about the possibility of removing the standard.
Chairwoman Kirsten Corson said eliminating the scheme could allow higher-emitting vehicles to enter the New Zealand market more easily, particularly as other countries strengthen their own emissions rules.
Corson pointed to Australia’s new fuel-efficiency standard, which recently reported its first six months of results. According to Corson, overall vehicle emissions there are already declining, with many manufacturers meeting the initial emissions targets.
Drive Electric’s submission argued that if New Zealand abandons its emissions standard while other markets tighten regulations, the country could end up importing less efficient vehicles that manufacturers cannot sell elsewhere.
Industry supports adjusted standard
The Motor Industry Association (MIA) said it supports keeping the Clean Vehicle Standard but believes adjustments are needed.
Chief executive Aimee Wiley said the emissions trajectory should be recalibrated to better reflect vehicle supply, affordability and the realities of New Zealand’s small, import-dependent automotive market.
Wiley said the industry wants a policy framework that remains credible and workable over the long term while still supporting emissions reductions.
The association also indicated it would support aligning certain regulatory settings with Australia where it helps reduce complexity for vehicle importers and distributors.
Government yet to decide next steps
Bishop said the government has not yet received final advice from officials on the review.
If the government decides legislative changes are required, the issue would likely go through a select committee process, allowing the public to make submissions.
The review will help determine whether the current Clean Vehicle Standard is retained, modified, or potentially removed entirely.
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