New Zealand’s Low Emissions Heavy Vehicle Fund is getting a major upgrade to help businesses move towards cleaner and more efficient freight transport, according to Energy Minister Simon Watts.
“Heavy freight represents a high-impact opportunity to reduce emissions and enhance energy efficiency on our roads,” Mr Watts said.
The Fund, which helps support clean truck technologies, now includes new features that aim to make it easier for businesses to switch to low- or zero-emission trucks. These include both battery electric trucks and hydrogen fuel cell trucks.
“Globally, clean heavy freight is reshaping modern, competitive supply chains. We want to keep working on getting the market going here, so New Zealand businesses have more choices,” Mr Watts explained.
Helping More Trucks Qualify
One key change is that the Fund now supports more types of trucks. Medium and heavy vehicles starting at 12 tonnes can now apply for higher funding levels. This means more trucks can qualify for help under the new rules.
Vehicles already in New Zealand can also benefit. If a truck has been registered within the past five years, owners can now get grants covering up to 25% of the cost to convert it from a petrol or diesel engine to a low-emissions alternative.
Bigger Grants and Tax Support
The Government is also increasing grant amounts to encourage more businesses to switch to cleaner options. This includes more funding for electric conversions, new hybrid trucks, and hybrid upgrades.
“In line with these changes to the Fund, the Government is also rewarding businesses who make new investments by reducing their tax bills in the year they purchase new assets,” Mr Watts said. “Investment Boost will support investment in projects and the uptake of low emissions technology – including hydrogen.”
Working Together for a Cleaner Future
Mr Watts said cutting emissions from trucks is a big part of the Government’s second Emissions Reduction Plan and will help speed up the switch to cleaner freight.
“For New Zealand to keep pace, coordinated action between government, industry, and infrastructure providers is essential. We need to show speed and smart execution,” he said.
“By embracing these clean technologies, we can ensure the seamless movement of goods across the country, securing a sustainable transport future for New Zealand.”
The Fund is managed by the Energy Efficiency and Conservation Authority (EECA). The recent updates follow a planned review of the Fund’s performance earlier this year, with new improvements based on EECA’s recommendations.
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