The New Zealand Government is making changes to its Clean Vehicle Standard to give vehicle importers more options in how they meet annual emissions targets. This move, officials say, will help keep costs lower for consumers.
Transport Minister Chris Bishop said the new rules will make it easier for both new and used vehicle importers to meet their targets. One major change will allow credits to be traded between the two sectors. However, because new vehicles are expected to save more fuel over their lifetime, importers will need two credits from used vehicles to offset one charge on a new vehicle.
The lifespan of emissions credits is also being extended from three years to four. This means importers can balance their targets over a longer period, using future low-emission sales to cover past shortfalls.
“The Government supports the Clean Vehicle Standard to ensure that New Zealand has an affordable mix of clean vehicles,” Bishop said.
“When importers don’t meet the targets, they’re more likely to pass on costs to Kiwi consumers. When importers do meet the targets, there’s no need to pass on the charges. We are making it more flexible for car importers to achieve their targets so less costs are passed onto Kiwis buying cars.”
Weight-Based Targets Removed
Another major change removes weight-based adjustments from emissions targets. Bishop said the old system was no longer accurate.
“The relationship between vehicle weight and emissions is breaking down. It used to be that heavier cars would often have higher emissions but as more hybrids and EVs have entered the market that is no longer the default assumption,” he said.
“A weight-based approach was only designed to be temporary.”
Bishop said the improvements are designed to give importers more flexibility at a time when they face market pressures beyond their control.
“Flexibility is critical given importers have little control over market factors such as supply and demand conditions,” he said.
“Overall, the improvements will support importers to bring in vehicles that are more fuel efficient and cheaper for Kiwis to run.”
Industry Welcomes Changes but Calls for More
The Imported Motor Vehicle Industry Association (VIA) welcomed the changes, saying they reflect long-term requests from the industry.
“These changes were first signalled in the Government’s 2024 review of the Clean Car Standard and have been long awaited by the industry,” VIA chief executive Greig Epps said.
“VIA has consistently advocated for these adjustments, as they help create a more workable framework that better reflects the realities of vehicle supply into New Zealand. The removal of weight adjustment in particular has been a long-standing issue for our members.”
Epps said while the changes are positive, there is still work to do.
“The current penalty and target settings continue to place significant pressure on the industry, restricting supply and increasing costs for consumers. We look forward to further discussions with officials and the Minister on how these settings can be refined to ensure regulations achieve their environmental goals while also supporting affordability and choice for New Zealand families and businesses.”
The updates are part of the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2), which passed its first reading in Parliament on August 21.
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