Govt refreshes Low Emissions Heavy Vehicle Fund

The Government has unveiled a major refresh of the Low Emissions Heavy Vehicle Fund, with Energy Minister Simon Watts saying the changes will better support New Zealand businesses to transition to cleaner, more competitive supply chains.

“Heavy freight represents a high-impact opportunity to reduce emissions and enhance energy efficiency on our roads,” Watts says.

“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.”

Watts says the sector has evolved significantly since the fund was first introduced, with hydrogen fuel cell trucks now operating alongside battery electric models, particularly for heavier loads and long-haul routes.

“Since we introduced the fund, the landscape of clean heavy freight has evolved. In addition to battery electric trucks, which we see gaining traction in the market, hydrogen fuel cell trucks are now operating – particularly for heavier loads and longer distances.

“Reducing emissions for heavy freight is part of the Government’s second Emissions Reduction Plan and this initiative will accelerate uptake.”

The refresh includes several key updates to broaden access and improve incentives:

• Expanded vehicle categories: Medium and heavy vehicle categories now start at 12 tonnes gross vehicle mass, allowing more operators to qualify.
• Broadened eligibility for conversions: Vehicles registered in New Zealand within the past five years are now eligible for grants covering up to 25 percent of the cost to convert to low- or zero-emission technologies.
• Increased grant levels: Higher grants are available for zero-emission conversions, new hybrid vehicles, and hybrid conversions.

“For New Zealand to keep pace, coordinated action between government, industry, and infrastructure providers is essential. We need to show speed, and smart execution,” Watts says.

“By embracing these clean technologies, we can ensure the seamless movement of goods across the country, securing a sustainable transport future for New Zealand.”

Watts added that the fund’s update aligns with the Government’s wider goal of boosting business investment, referencing its recently announced Investment Boost tax initiative.

“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. Investment Boost will support investment in projects and the uptake of low emissions technology – including hydrogen,” he says.

The Low Emissions Heavy Vehicle Fund is administered by the Energy Efficiency and Conservation Authority (EECA). The latest changes follow a planned review undertaken earlier this year, with EECA recommendations now in place as part of the refresh.