Genter on hard-sell mission over ‘clean car’ plans

This story first appeared in the August issue of EvTalk – CLICK HERE to download the magazine FREE

Associate transport minister Julie Anne Genter pitched her Clean Car schemes to an audience at EVworld NZ in Auckland.

The scheme is made up of a Clean Car discount and a Clean Car standard which has been criticised by the automotive trade as unrealistic, and environmental advocates as not harsh enough.

Talking about Kiwis’ love affair with utes and SUVs, Genter says more fuel-efficient versions are coming, including electrics and other low to zero-emission fuel varieties.

Genter told the audience fuel emission standards are designed for flexibility for a range of vehicles.

A vehicle importer could offset larger more polluting vehicles by selling small more efficient cars, she says.

Genter adds the proposal needs to ensure social equity so that low income people are not disadvantaged.

She also talked about the road user charge (RUC) EV exemption expiring in 2021 when a feebate scheme is expected to start, but indicated the possibility some other help with EV costs may come as RUC will likely apply to all vehicles at some stage to pay for road works mostly met from fuel taxes now.

She says the Government is examining options for EV uptake but that public consultation is important.

VIA chief executive David Vinsen says the industry is united against the Clean Car standard.

“The name, it is not about Clean Cars, that is misleading. Clean Cars is about noxious gases and health issues,” Vinsen says.

“This is about fuel economy and efficiency.”

Genter’s repeated claim that New Zealand is being supplied with less fuel-efficient vehicles has been denied by the new vehicle trade.

“The MIA has consistently rejected the notion that importers deliberately supply less fuel-efficient vehicles compared to other markets,” chief executive David Crawford says.

“Limiting supply through a fuel economy standard will lead to perverse outcomes as consumer preferred models already in the market place are held on to.”

“If the proposed standard, as set out in the discussion document was to be implemented, than the first models to disappear out of the market will be a range of small vehicles under 1200kg in weight. So much for encouraging more fuel-efficient cars.”

The MIA is seeking an extension on the consultation period – which ends on August 20.

A visiting Swedish expert on feebate and carbon dioxide emissions schemes says the targets set under New Zealand’s Clean Car standard are not aggressive enough.

EVworld keynote speaker Jakob Lagercrantz of the Swedish National 2030-Sekretariatet – a “coalition of the willing” providing independent advice on all transport – described his country’s similar feebate system called Bonus Malus after a year in force.

Lagercrantz says a feebate scheme needs to be combined with road taxes.

He says Sweden will review the Bonus Malus system next year and that frequent reviews are needed because of rapidly developing technology.

He says a different policy may be required for rural areas.

He urges New Zealand to set a national policy, taking into account a fuel policy, taxes and more.

Lagercrantz says a review of road user charges is also important and can be used to promote further expansion of low emission vehicles of all kinds.

Partnerships and other new strategic alliances, which include electricity companies, are necessary to help with low emission vehicle development, he believes.

Lagercrantz says New Zealand could possibly do even better than 105 grams – noting that this was where Europe already is.

The International Council of Clean Transportation (USA) executive director Drew Kodjak says New Zealand’s proposed line on fuel emissions is higher than many others.

For new or near-new plug-in cars, battery electrics would receive an $8000 rebate, plug-in hybrids $6800 and hybrids $4800.

No vehicles over $80,000 would receive a discount – locking out many of the electric vehicles currently on offer.

While the highest penalty for a new vehicle is $3000, used import cars would sit on a different scale – with a maximum fee of $1500, and a maximum discount of $2600.

The plan could sit alongside a corporate average full economy style system that would require distributors, or used car traders, to ensure the balance of vehicles they sell each year fits a C02 average of 105 grams per km, down from the country’s current 180-gram average.

If they fail to do so, they could face stiff monetary penalties: $50 per gram per vehicle per year for used imports, $100 per gram per vehicle per year for new vehicles.

The new rules will only apply to light vehicles, with a maximum tare of 3500kg.

The system could be implemented from 2021, either staged, with a lowering limit until 105 grams in 2025 or applying to a percentage of the distributor or importer’s fleet.