Clean car package announced

A “feebate” scheme to penalise polluters and reward low to zero emission vehicle purchasers will start on July 1 and could see far fewer utes like the Toyota Hilux imported as a result after the fees on higher emitting vehicles to help fund the scheme begin on January 1, 2022.

New rebates for electric and plug-in hybrid vehicles provide up to $8625 for new vehicles and $3450 for used, while carbon dioxide emission vehicles below the zero-band threshold like the popular Ford Ranger (234 CO2 emissions per km) face a $2780 fee and the Toyota Hilux (236 CO2 per km) incur a $2900 fee.

The rebates will also expand from January 1 to include low emission vehicles, not just electric and plug-in hybrids (PHEVs).

The Government is taking action in line with the Climate Change Commissions advice to increase the uptake of low emission vehicles by introducing a range of measures that will help meet New Zealand’s 2050 carbon neutral target and create jobs to support the economic recovery, transport minister Michael Wood says in announcing the “feebate” scheme.

 “Our transport emissions are the fastest growing source of greenhouse gas emissions in New Zealand so we need to start taking action now if we are going to meet our 2050 targets,” he says.

 “New Zealand is actually lagging behind on the uptake of EVs, so we are playing catch up internationally. Our monthly registrations of EVs are around half the global average and sales are well below the 50% of monthly sales seen in some European countries.”

 Wood says the Government has already committed to policies that will make a difference, like the Clean Car Import Standard, decarbonising the public transport bus fleet and revitalising rail.

 “But we have to do more.

 “A discount on electric, hybrid and low emission vehicles funded from a fee on higher emitting ones is the best policy to increase low emissions vehicle uptake in New Zealand,” Wood explains.

“It’s a common policy overseas, a recommendation of both the Climate Commission and the Productivity Commission, and is supported by the likes of the Motor Industry Association – it’s time to get moving with it.”

 Wood says the Clean Car Discount will make it cheaper for New Zealanders to buy electric and low emission cars.

“It will prevent up to 9.2 million tonnes of carbon dioxide emissions and will help with the upfront cost of switching over with Kiwis getting up to $8625 back.

 “We’ve made some changes to the policy proposed last term, so only cars under $80,000 and safer models are eligible for rebates.”

Rebates will begin from July 1 while fees on higher emitting vehicles to help fund the scheme won’t begin until January 1, 2022.

“Importantly the policy only applies to new and used cars arriving in New Zealand, so the existing secondhand market of cars that lower income families tend to purchase from will not be affected,” Wood says.

“We’ve also been doing the work to ensure Kiwis have the confidence to go electric, with electric vehicle chargers now available on average every 75km along most state highways. The Government has been investing directly into charging facilities through the Low Emission Transport Fund (formally the Low Emission Vehicles Contestable Fund) which has already co-funded over 1100 electric vehicle chargers nationwide.

“And as part of Budget 2021 we’re increasing our investment so total funding for the programme will reach up to $25 million per year by 2023/24. Other projects using low emission fuels like biofuels and hydrogen, will also now be eligible for funding.”

 Wood says the Government will need to work with the sector to make sure vehicles are available and help develop policies – “which is why I intend to set up an electric vehicles sector leadership group in the coming weeks”.

 “Our proposed Sustainable Biofuels Mandate will help us reduce emissions from cars, trucks, ships and planes by 1.3 million tonnes until 2025 while zero emissions options are developed,” Wood says, adding it will also help create jobs and encourage a local industry to support New Zealand’s economic recovery.

“Reducing the cost of electric, hybrid and low-emission vehicles will also stimulate the secondhand market, so in the years to come even more people can access low carbon transport options.

An Electric Vehicle Buyers Guide is available to help guide potential buyers.

Consultation on the Sustainable Biofuels Mandate is open until 5pm on July 26, 2021, and submissions can be made here.