“Feebate” to subsidise electric vehicles?

Importers of gas guzzling vehicles could be hit with extra fees in an effort to subsidise electric vehicles if new proposals are adopted.

The Productivity Commission has proposed introducing what it is calling a “feebate” on vehicles that use large amounts of fossil fuel, in its Low Emissions Economy draft report.

High-emission vehicles would incur a fee, while low-emission vehicles like EVs would receive a rebate, the report says.

“The feebate could be a one-off transaction at the point of importing a vehicle, a component of a vehicle’s annual registration fee, or a combination of the two.

“NZ is one of a handful of developed countries without vehicle emissions standards, and risks becoming a dumping ground of high-emitting vehicles from other countries that are decarbonising their fleets,” the report says.

The adoption of EVs represents a significant opportunity to reduce transport emissions in New Zealand, although price and limited range both remains barriers, according to the report.

Along with the proposed “feebate”, the report suggests the Government can lead on procurement of EVs by introducing more into its own fleet.

The report aims to see New Zealand become carbon neutral by 2050.