Government eases ‘too strict’ ​​clean car rules

The government has relaxed standards aimed at improving the fuel efficiency of new cars in New Zealand, saying the current schedule was too strict for car importers.

Transport Minister Simeon Brown said the new standards would be the same as in Australia because the two countries are essentially one car market.

Australia’s standards were also relaxed from those originally proposed after representatives from the petrol and diesel car industries argued the changes went too far.

The Clean Car Standard limits the average carbon dioxide emissions from the tailpipes of new cars imported into the country. It was introduced to reduce emissions and prevent New Zealand from becoming a dumping ground for less efficient vehicles that could not be sold in territories with stricter regulations.

However, the minister said it would become increasingly difficult for importers to meet the 2025-2029 standards, and car buyers would have to pay upfront costs of thousands of dollars per vehicle.

Clean car advocates saw the changes coming when the government took the urgent decision to pass the Land Transport (Clean Vehicle Standard) Bill through Parliament, repealing the clean car targets and allowing the Transport Minister to set new ones.

Drive Electric, a clean car lobbying group, said weakening the standards would only lead to people having to pay higher petrol and diesel bills for decades to come.

The company said it had spoken to “only a handful of players” before making the decision – and if New Zealand aligns its standards with Australia’s, it should also take a cue from the country’s “comprehensive” incentives for purchasing electric vehicles.

Average emissions from cars entering the New Zealand market have risen since the government removed subsidies for electric vehicle purchases. Lobbyists say the Clean Car Standard is the only tool that will help drive the transition to a cleaner fleet.

“The fleet is already getting dirtier, and now we are weakening emissions standards,” Drive Electric said in a statement.

Brown said the Government supported the Clean Car Importers Standard and the changes had been made after a “comprehensive review”.

Information provided to him by the Ministry of Transport shows that, under current targets, penalties for importers would amount to about $800.6 million in costs to consumers buying a new car in 2027, or about $5,549 per vehicle, he said.

“The review found that the current Standard targets are too stringent and increasingly difficult for importers to achieve because they are inconsistent with the production standards of leading vehicle manufacturers. In fact, the review found that the commercial targets for 2026 and 2027 are more stringent than any other country in the world,” the ministry said in a statement.

He added that sticking with the current path would mean rising costs for consumers without reducing emissions.

“These changes will ensure that the standard emissions targets are stringent enough to ensure New Zealand can continue to receive supplies of clean vehicles, but not so stringent that importers cannot meet them, which would lead to higher vehicle prices,” Brown said.

RNZ has contacted the Minister’s office for a copy of the Ministry of Transport’s opinion.