Drive Electric warns CCS changes risk turning NZ into ‘dumping ground’ for high-emission vehicles

Electric vehicle lobby group Drive Electric says the Government’s decision to slash the Clean Car Standard (CCS) is a “big step backwards”, warning the changes will slow the shift to cleaner vehicles, raise long-term costs for households, and undermine New Zealand’s climate commitments.

Transport minister Chris Bishop this week confirmed CCS charges for vehicle importers will be cut by nearly 80% from 2026 and that existing CCS credits will be protected until the end of 2028. A full review of the Standard is also under way.

Drive Electric chair Kirsten Corson says the shift will have serious consequences for affordability, emissions and energy security.

“The faster we get people into EVs the faster we end dependence on imported petrol and diesel, saving the economy and households billions of dollars every year.

“An electric transport future is a cheaper future for Kiwis. Charging a BEV at home is the cheapest way to drive a car 100km in Aotearoa,” Corson says.

She says weakening the CCS risks New Zealand becoming a “dumping ground for high-emission vehicles”.

EV incentives removed, emissions rising

Drive Electric says the Government has steadily dismantled the programmes that previously supported the uptake of cleaner vehicles. The Clean Car Discount has been scrapped, GIDI funding has been halted, and EVs are now subject to road user charges and full ACC levies.

The group says these changes have reduced consumer demand for EVs and contributed to emissions from imported vehicles rising again.

It also points out significant financial risks. Treasury estimates suggest New Zealand could face a Paris Agreement liability of between $3.3 billion and $23.7 billion by 2030 if it fails to meet its targets.

Corson says those costs would hit the economy far harder than maintaining strong transport-emissions policy.

Drive Electric says weakening the CCS could put New Zealand at odds with its free-trade agreements with the EU and UK, which require ongoing support for the Paris Agreement.

The group also warns that investor confidence in the EV sector is being damaged, with businesses now facing changing rules and reduced certainty.

Bishop says the decision to lower CCS penalties is necessary to prevent vehicle prices rising “by hundreds, or even thousands, of dollars”, pointing to constrained supply from Japan and declining EV demand.

“It sets annual CO2 targets for vehicle importers… If they fall short, they face charges; if they exceed it, they earn credits,” Bishop says. He argues current settings risk pushing prices beyond what buyers can afford.

Drive Electric says it will keep pressing for stronger emissions policy and will engage directly with ministers, industry groups and the public.