Media speculate ‘feebate’ will return

Will the “feebate” scheme killed off by NZ First last year that penalises polluters and rewards low emission vehicle uptake be resurrected?

Some media think so, pointing to the $302 million tagged in Budget 2021 for a new initiative to support EV uptake for which details are still being finalised.

The “feebate” – which makes EVs cheaper and gas guzzlers more expensive – may be back from the dead, Stuff reports.

“As a member of the coalition Government, NZ First killed the scheme last year, but the policy made a cryptic return in Budget 2021.

“(Climate change minister James) Shaw’s office labelled the $302m fund for low-emissions vehicles the Clean Car Discount, which is the official name of the feebate.”

Finance minister Grant Robertson​ announced $302m had been put aside for an unnamed policy “to implement a regime to incentivise the uptake of low-emissions vehicles”, Stuff adds.

“It’s not clear whether the scheme will be a subsidy only, or whether it will also raise prices for gas guzzlers, however climate (change) minister James Shaw said it would have a ‘broadly similar design’ to the feebate.”

RNZ also ponders the feebate scheme’s return, saying “$300m has been set aside for a revived feebate scheme to subsidise electric vehicles which was torpedoed by New Zealand First in the Government’s last term.”

EVs and Beyond understands talks are continuing between government and automotive industry representatives about a possible feebate-style scheme.

Meanwhile, Waka Kotahi NZ Transport Agency is encouraging New Zealanders to buy the safest and cleanest cars they can afford – those with high safety and environmental ratings – when making their next vehicle purchase.

Safe and clean cars, which includes most EVs available here – along with Hyundai’s Nexo hydrogen car, can be found on the newly updated Rightcar website.