Video: Feebate scheme recommended

https://www.youtube.com/watch?time_continue=10&v=ja75QgXuZyk

A feebate scheme to accelerate electric vehicle uptake is among recommendations in the Productivity Commission’s final report on the drive towards a low emissions economy.

The report, released on September 4, urges the Government to introduce a feebate scheme in which importers would either pay a fee or receive a rebate, depending on the emissions intensity of the imported vehicle.

Transport is New Zealand’s second largest source of greenhouse gas (GHG) emissions, contributing nearly 20% of gross emissions (and about one third of long-lived GHG emissions), the report says.

“New Zealand’s transport system is dominated by private road transport. Compared to other developed countries, vehicle ownership rates are high, public transport use is low, and the vehicle fleet is old with poor fuel economy,” the report says.

“Rapid population growth and a decline in prices for fossil-fuel vehicles have caused the vehicle fleet to greatly expand. New Zealand’s transport emissions have risen more than any other emissions source since 1990.”

Adoption of EVs represents the most significant opportunity to reduce transport emissions in New Zealand, the commission notes.

“EV uptake is rising and costs will continue to fall, though price remains a key barrier as well as the limited travel range of current EV models. Fast uptake will be critical to achieve a low-emissions economy. For the bulk of light vehicles to be electric by 2050, nearly all vehicles entering the fleet would need to be EVs by the early 2030s.”

Along with the “feebate” scheme, the commission also recommends the Government continue to provide funding for some EV infrastructure projects, to fill gaps in the charging network that are commercially unviable for the private sector; raise awareness and promote uptake of low-emissions vehicles through leadership in procurement; and require imported new and used fossil-fuel vehicles to meet fleet-wide emissions standards.

The commission says New Zealand is one of a handful of developed countries without vehicle emissions standards, and risks becoming a dumping ground for high-emitting vehicles from other countries that are decarbonising their fleets.

“Decarbonising heavy transport (trucks, planes and ships) is more challenging than for light vehicles. Large reductions will rely on further advances in technology. Some of the key mitigation opportunities are electrification and switching to drop-in biofuels. However, the most effective solution is not yet clear, and may involve a mix of fuel sources.”

The Government should pursue a mix of policies that provides even-handed support for these technologies, the commission says.

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