Drive Electric concerned about CCS changes

The Government’s announcement that it intends aligning its Clean Car Importer Standard with Australia risks disincentivising EVs here, says Drive Electric chair Kirsten Corson.

She says New Zealand needs EV incentives similar to those offered in Australia.

“This is the real way to save New Zealanders money, given EVs are cheaper to run,” says Corson.

“Reducing emissions standards won’t save New Zealanders money, as it locks New Zealand into buying petrol and diesel. It costs New Zealand $8 billion to $9 billion annually to import fossil fuels,” says Corson, adding that vehicles bought today will still be around in about 20 years.

She says Drive Electric also wants to see what the penalties will be “as it’s unclear at this stage”.

This year New Zealand’s vehicle fleet is getting dirtier than it was in 2023, after the removal of the Clean Car Discount (CCD), says Corson, pointing out the average emissions of newly registered light vehicles in the first five months of 2024 have increased to 161g/km on average – up from 136g/km last year.

“In other words, the fleet is already getting dirtier and now we’re weakening emissions standards.”

Independent modelling done for Drive Electric in December last year shows that with the CCD’s removal, New Zealand will have 100,000 fewer EVs on the roads by 2030.

The same modelling shows that weakening the standard will worsen that effect, says Corson, adding that if the full Clean Car Standard is removed this would reduce the EVs on New Zealand roads by up to 350,000 by 2030.

Australia has incentives and tax exemptions to support EV uptake, including a federal fringe benefit tax (FBT) exemption for eligible EVs.

Corson reckons Green MP Julie Anne Genter’s Bill seeking an EV FBT five-year exemption here could be considered in August this year after it was pulled from the parliamentary ballot in March 2024, although EVs and Beyond reported National was unlikely to support it at that time because costings hadn’t been provided.

Drive Electric says most Australian states and territories also have stamp duty rebates and/or cash incentives for low emission vehicles like EVs.

“If New Zealand introduces Australia’s emissions standards, but doesn’t have incentives for consumers, it will be very difficult for our car importers to compete for supply,” the EV advocacy group says.  

EV group the Better New Zealand Trust chair Kathryn Trounson says EV sales have fallen 81% under the new Government, while the average emissions of new vehicle imports increased 32%.

“The Clean Car Standard was the one policy left that was effective in driving down vehicle emissions,” she says, adding that weakening it will set New Zealand back years.

“A weaker Clean Car Standard will mean, fewer fuel-efficient vehicles on the road, leading to higher petrol bills for Kiwi families and billions more in oil import costs for New Zealand for decades to come.”