Association’s comment on emissions plan

Plenty of cheap, green electricity and introducing a universal carbon tax which could become a carbon dividend putting money into KiwiSaver accounts will help New Zealand’s transition from fossil fuels.

So says the Imported Motor Vehicle Association (VIA) in proposing a universal version of the feebate scheme for vehicles in which early adopters and adherents would be rewarded and emitters penalised.

The VIA floated the idea in its submission on the proposed Emission Reduction Plan
(ERP).

The ERP will set the direction for climate action for the next 15 years and put New Zealand on the path to meeting 2050 net-zero greenhouse gas emissions and biogenic methane targets.

The most important thing government can do to promote electrification across every industry is to increase the cost discrepancy between using electricity and using fossil fuels, VIA’s submission says.

Plentiful, cheap and green electricity would also attract international businesses with the promise of carbon neutral electricity, and potentially could shift the country’s export profile away from agriculture.

VIA senior policy advisor and submission mastermind Kit Wilkerson says land freed from agriculture could be used for forestry and native tree planting to help offset carbon emissions.

Wilkerson suggests big emitting companies rather than the general public should carry the cost of that transformation.

Any excess green energy New Zealand produces could be absorbed by a sink making green hydrogen and sequestering atmospheric carbon using New Zealands technical prowess and providing it to the world.

The MIA wants a pragmatic approach, not just an opportunity for the Government to collect money from New Zealanders.

What the VIA proposes would substantially help people on lower incomes, particularly in meeting their power bills and getting them into e-mobility and other e-technologies, he says.

Many people who drive internal combustion engine (ICE) vehicles today assume that since fuel prices have remained constant over time that that trend will continue.

Price increases for fossil fuels should be planned and well telegraphed so that people know such fuels could be, say, 23% more expensive in five or so years.

The Motor Trade Association (MTA) says the ERP consultation document is high-level and vague.

“Minister James Shaw has made numerous references for the Emissions Reduction Plan to be a co-designed process as did the consultation document, the MTA says.

However, this high-level discussion document appears to be the last opportunity for engagement before the final release of the Emissions Reduction Plan in May 2022.

Essentially, Government is crowd sourcing policy but not consulting on the results
of this survey of a wide number of stakeholders.

The MTA says all new and used vehicle will, over time, operate at levels below their original manufactured specifications.
Being aware of their actual level of emissions is likely to impact consumer behaviour and guarantee reduction of carbon leakage.

“The first use of emissions testing should be education.
As time goes on, the Government might consider establishing an in-service emissions standard that triggers remedial actions when a breach is discovered at testing.”
Changes to the Vehicle Inspection Requirements Manual could include examining exhaust systems to ensure catalytic converters or diesel particulate filters (DPFs) are present and operating normally.

The focus should be on making electric vehicles more affordable, not on penalising people buying new ICE vehicles, the MTA says.

“These import penalties will subsequently increase the price of ICE vehicles (and) if this further suppresses demand for imported vehicles then many people will stay in their old, carbon-emitting, unsafe cars for longer.”
The Motor Industry Association has said previously that it supports broadly the ERP and its ideals.
“The MIA is supportive of programmes to improve access to low-emissions vehicles for transport-disadvantaged groups, its submission says.

Such programmes may include car-share schemes and community ownership of EVs.

For vehicle ownership, these programmes should be developed in conjunction with the finance and vehicle lease sectors to develop tailored packages, possibly underwritten by the Government, to help groups (or individuals) buy low-emissions vehicles and which illustrate the total cost of ownership (TCO) of a EV versus an older ICE.”
“New cars sold in New Zealand are made for the Australasian or Oceania market, which makes up about 2% of the total world market.

“Our major (sources) for new cars are Japan, followed by Thailand, Europe and South Korea.

“Consequently, as these source countries introduce ICE bans, then NZ will be able to follow suit as they will cease making them.

“The only issue is timing and the nuance of the ban (pure ICE vs hybrid and PHEV).
NZ will be able to introduce the same type of bans as the manufacturing countries, but with a delayed timeline of two years to allow for stock order timeframes and product planning for replacement stock.

“(If) Europe introduces a ban on all ICE technology from 2035, then the MIA proposes that 2037 could be the deadline for the equivalent ban in NZ.”