Toyota doing its bit for lower emissions

Toyota New Zealand is lowering its fleet’s emissions and preparing for a zero-carbon future as recommended by the Productivity Commission’s final report on a low emissions economy.

“The actions our business has already started taking demonstrate our commitment to action on climate change,” Toyota New Zealand chief executive officer Alistair Davis says.

The Productivity Commission’s report, released on September 4, is expected to provide recommendations and the framework for a Zero Carbon Act to go before Parliament.

Toyota is supporting the commission’s call for a comprehensive, predictable climate change policy that has bipartisan support across the political spectrum..

“Action on climate change can be a competitive advantage,” Davis says, pointing to its increasing sales of fuel and carbon saving hybrid electric vehicles to the New Zealand market.

The just launched all-new Corolla has more hybrid model options. And early in 2019 Toyota will launch its first hybrid electric SUV, the RAV4.

It expects to offer hybrid or plug-in hybrid electric vehicles across its entire model range by 2025. Davis says it will take several decades for the transport industry, which accounts for nearly 20% of all New Zealand’s carbon emissions, to significantly reduce its footprint.

“Our parent company has a long-term plan by 2050 to reduce emissions from its fleet and activities worldwide by 90%,” Davis says. “That will directly help our efforts here.”

New Zealand’s high proportion of renewable electricity means conversion of the national fleet to electric and hybrid vehicles will play a crucial role in meeting the commitment of the transport and motor industry to reducing CO2 emissions, Davis says.

A feebate scheme that charges high emission vehicles and rewards low emissions would encourage suppliers and consumers to adopt lower emission vehicles irrespective of whether they are New Zealand new or second-hand imports, he says.

This could be complemented by a maximum age for imported vehicles, as the older the vehicle the more emissions it produces.

Fuel pricing is another option as consumers buy more fuel-efficient vehicles when fuel becomes expensive.

“Toyota believes a target percentage for the light non-fossil fuel vehicle fleet should be set as a trigger point for when the Government would consider a date for phasing out of fossil fuel vehicles with plans and policies to encourage it.”

Davis says EV global production is still limited and the technology has to be more affordable to encourage broader uptake. “So setting a date now would be premature.”

Road pricing will be needed to compensate for the fall in fuel tax revenue to maintain and build new roads, Davis believes.

New Zealand needs to encourage a greater scrappage rate of old vehicles which produce more emissions, as the rate has dropped with their greater reliability, he says.

“Political consensus and long-term commitment from the Government and the motor industry are needed for the transition to a low emissions economy to be successful.”