Clean car package to drive down emissions

Last week we announced further action to tackle climate change, in particular actions we can take to reduce our transport emissions, by increasing the uptake of low emission vehicles. 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.

We’re working on a range of measures to decarbonise our transport industry, 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.

The Clean Car Discount will make it cheaper for New Zealanders to buy electric, hybrid and low emission petrol vehicles. Cars under $80,000 will be eligible for a rebate of up to $8,625, which will begin from July 1 while fees on higher emitting vehicles to help fund the scheme won’t begin until 1 January 2022.

It’s important to note that this policy will only apply to new and used cars being imported to New Zealand, so existing cars on the second hand market in New Zealand won’t be affected. The rebates will apply to all low emission vehicles, not just electric and plug-in hybrids.

Without these changes, New Zealand risks becoming a dumping ground for the world’s dirtiest cars. These changes will help prevent up to $9.2 million tonnes of carbon dioxide emissions, and will support Kiwis with the upfront cost of making the switch to electric.

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. Through the Low Emission Vehicles Fund, we are continuing to invest in the infrastructure to support electric vehicles on the road, to grow the network of EV charging stations around the country.

As technology develops and more manufacturers decide to stop making petrol and diesel cars, the cost of low emissions vehicles will come down. However at the moment they are still more expensive to buy. Our clean car discount will ensure more families can enjoy the benefits of low emission vehicles and their lower maintenance and running costs.

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