Drive Electric urges Government to retain Clean Car Standard

Drive Electric is urging the Government to retain and strengthen the Clean Car Standard (CCS), saying the policy is essential to improving New Zealand’s energy security and supporting the transition to lower-emission vehicles.

In an open letter to Transport Minister Chris Bishop, Drive Electric chair Kirsten Corson welcomed the Government’s recent commitment to reducing fringe benefit tax (FBT) rates for electric vehicles but said the organisation wanted to see greater focus on supply-side policy.

“Through an Official Information Act request, we reviewed the Clean Car Standard consultation responses and were heartened to see that a clear majority supported retaining the Standard,” Corson says.

Drive Electric is calling on the Government to publicly commit to retaining the Clean Car Standard, ensure the current review accelerates energy resilience and security, and align the scheme’s targets and penalties with Australia’s New Vehicle Efficiency Standard.

“The CCS is our one policy lever for shifting the vehicle fleet onto our 88% renewable electricity supply. The Standard could be aligned with Australia’s New Vehicle Efficiency Standard, which the Australian Government has confirmed is delivering results,” she says.

Corson says the Strait of Hormuz crisis highlighted New Zealand’s vulnerability to imported fuel.

“The Strait of Hormuz crisis added significantly to what Kiwi families and businesses pay for fuel, with petrol prices rising by 18.6% and diesel prices by 42.6% in March 2026 alone. These were the largest monthly increases since Stats NZ began recording this data in 2011.”

She says Drive Electric is asking the Government to:

• publicly commit to retaining the Clean Car Standard
• ensure the current review accelerates energy resilience and security
• align the Standard’s targets and penalties with Australia’s New Vehicle Efficiency Standard.

“Clean Car policies once drove the combined EV market share above 20% in 2023. Since the Clean Car Discount was repealed, the Standard was weakened twice, and road user charges were applied to EVs, that share fell below 10% by 2025—while Australia pushed past us,” says Corson.

She says New Zealand has moved away from Australia’s approach, with the CO2 penalty now set at NZ$15 per gram compared with AU$50-$100 per gram across the Tasman.

“Weaker EV supply was a consequence of weaker demand policy, not its cause. Removing the Standard would only deepen the problem.”

Corson says demand for EVs remains evident, with battery electric vehicle registrations more than tripling in March 2026 and combined BEV and PHEV sales reaching 33.6% of new light vehicle sales during the month.

She says New Zealand’s reliance on imported fuel leaves it exposed to future oil shocks.

“We are seeking policies focused on energy resilience and security,” says Corson.

“Repealing the Standard would signal that New Zealand is not serious about energy resilience and would leave the country more exposed to the next oil shock.”

Drive Electric says it welcomes the opportunity to work constructively with the Government and has requested a meeting with Bishop.