Government launches Low Emission Heavy-Duty Vehicle Fund to promote clean technology adoption

The New Zealand government has introduced the Low Emission Heavy Vehicle Fund (LEHVF) to support businesses in adopting clean technologies and reduce the cost of purchasing low and zero emission heavy vehicles. The initiative, announced by Energy Minister Simeon Brown and Climate Change Minister Simon Watts, aims to accelerate economic growth while reducing the environmental impact of the transport sector.

With $27.75 million allocated in Budget 2024, the LEHVF will help offset up to 25% of the cost of new low-emission heavy-duty vehicles and the conversion of existing higher-emission vehicles to cleaner alternatives. Minister Brown highlighted that the fund will reduce upfront costs for businesses, enabling them to increase productivity and reduce long-term operating costs.

“The LEHVF is a key part of the government’s strategy to boost economic growth by making low-carbon technologies more accessible to businesses. Ultimately, it will save consumers money by reducing day-to-day operating costs,” Brown said.

Climate Change Minister Simon Watts highlighted the long-term environmental benefits of the initiative, noting that the transport sector accounts for 18% of New Zealand’s total emissions. Energy Efficiency and Conservation Authority (EECA) modelling suggests that by 2028, the fund could replace up to 500 diesel vehicles with zero or low emission vehicles, preventing around 366,622 tonnes of carbon dioxide emissions over the vehicles’ life cycle.

“This fund is a one-time initiative, but its cumulative emissions benefits will stretch well beyond the immediate future,” Watts added.

In six months, the LEHVF will undergo a review to assess its effectiveness and adapt it to current advances in clean technology.