{"id":312929,"date":"2026-03-04T18:18:10","date_gmt":"2026-03-04T18:18:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/312929\/"},"modified":"2026-03-04T18:18:10","modified_gmt":"2026-03-04T18:18:10","slug":"government-considering-scrapping-entire-clean-car-standard","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/312929\/","title":{"rendered":"Government considering scrapping entire clean car standard"},"content":{"rendered":"<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/03\/4NXU7RK_image_crop_53751.jpeg\" width=\"1050\" height=\"656\" alt=\"Detail power supply for electric car charging. Electric car charging station. Close up of the power supply plugged into an electric car being charged.\"\/><\/p>\n<p class=\"photo-captioned__information\">\nPhoto: 123RF\n<\/p>\n<p>The government is considering scrapping the clean car standard altogether, months after slashing the fees importers pay to bring dirty vehicles into the country.<\/p>\n<p>An EV advocate said if the proposal goes ahead, New Zealanders will be sold &#8220;the high-emitting leftovers&#8221; that manufacturers can no longer sell in Australia.<\/p>\n<p>The Motor Industry Association said it wants to keep the standard, but it needs &#8220;recalibration&#8221; to make sure it works for importers, car distributors, and consumers.<\/p>\n<p>Transport Minister Chris Bishop said the government is carrying out a first principles review, so &#8220;obviously&#8221; an option to scrap the standard is on the table.<\/p>\n<p>Introduced by the previous government, the Clean Vehicle Standard charges importers a penalty for cars that exceed the target emissions level, but that can be offset by also importing cars with lower emissions.<\/p>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/02\/4JSYOUX_Image_7_jfif.jpeg\" width=\"1050\" height=\"700\" alt=\"Housing Minister Chris Bishop. Generic\"\/><\/p>\n<p class=\"photo-captioned__information\">\nTransport Minister Chris Bishop.<br \/>\nPhoto: RNZ\/Marika Khabazi\n<\/p>\n<p>That penalty was slashed by nearly 80 percent last November, with Bishop saying supply constraints meant importers could not source enough low-emissions vehicles to avoid being penalised.<\/p>\n<p>That could result in thousands of extra dollars being passed on to buyers, Bishop said.<\/p>\n<p>He said then that a full review of the standard would follow this year but it was unlikely the standard would be removed entirely.<\/p>\n<p>RNZ has learned that a targeted consultation carried out for that review has just ended, which included asking submitters whether the standard should be &#8220;abolished&#8221;.<\/p>\n<p>The consultation included the motor vehicle industry, international bodies, other government agencies, some advocacy groups, and subject matter experts, but was not open to the public.<\/p>\n<p>In a letter seeking submissions, the Transport Ministry said the review was being carried out in two stages.<\/p>\n<p>Stage one was &#8220;a first principles review of the standard &#8230; to enable Cabinet to decide to either retain the standard or abolish it&#8221;.<\/p>\n<p>Submitters were asked if they supported New Zealand retaining a fuel efficiency standard, and what the risks would be if it was abolished.<\/p>\n<p>It would make New Zealand just one of two OECD countries to not have a vehicle emissions standard &#8211; the other is Russia.<\/p>\n<p>Bishop said he had not received advice on the review, but would have more to say once the government had considered it and made decisions.<\/p>\n<p>&#8220;If legislative change is required, I expect there would be a select committee process and public submissions.&#8221;<\/p>\n<p>Drive Electric was among EV advocacy groups asked to submit.<\/p>\n<p>&#8220;We&#8217;re really alarmed that there&#8217;s the potential of removing the standard completely, because the rest of the world is going in the other direction,&#8221; chairwoman Kirsten Corson said.<\/p>\n<p>Australia had <a href=\"https:\/\/www.nvesregulator.gov.au\/reporting-and-data\/2025-nves-performance-period-results\" rel=\"nofollow noopener\" target=\"_blank\">just reported the first six months of data<\/a> since making its fuel efficiency standard mandatory, she said.<\/p>\n<p>&#8220;Their overall emissions are dropping, and two-thirds of the car-makers could meet the 2025 emissions targets.&#8221;<\/p>\n<p>The changes in New Zealand were due to &#8220;spectacular lobbying by some high-emissions vehicle importers&#8221;, Corson said.<\/p>\n<p>&#8220;It&#8217;s interesting that it&#8217;s working perfectly well in Australia.&#8221;<\/p>\n<p>Drive Electric&#8217;s submission warned that Australia&#8217;s success made it even more likely that New Zealand would become a &#8220;dumping-ground&#8221; for less efficient cars.<\/p>\n<p>&#8220;This &#8216;gravity effect&#8217; ensures that while Australians get the latest, most efficient technology from Thailand and Japan, New Zealanders are sold the high-emitting leftovers.&#8221;<\/p>\n<p>The government&#8217;s claim that car-buyers would be charged thousands of dollars more if the penalties had not been cut was &#8220;a false economy&#8221;, Corson said.<\/p>\n<p>&#8220;[Higher-emissions cars] are a cheaper price to purchase but they cost more to own and more to operate.<\/p>\n<p>&#8220;You just have to look at <a href=\"https:\/\/www.rnz.co.nz\/national\/programmes\/checkpoint\/audio\/2019025353\/government-playing-down-impact-iran-conflict-could-have-on-energy-prices\" rel=\"nofollow noopener\" target=\"_blank\">what&#8217;s happening with oil prices<\/a>.&#8221;<\/p>\n<p>New Zealanders&#8217; tendency to keep their cars for years meant petrol cars coming into the country today would hang around for decades, she said &#8211; costing their owners more to fuel and adding to New Zealand&#8217;s emissions.<\/p>\n<p>A slump in demand for EVs had been driven directly by the government&#8217;s decision in 2023 to also end the Clean Car Discount, Corson said.<\/p>\n<p>She wanted to see a tweaked version of that re-introduced, potentially targeted at the 70 percent of new car sales that go to businesses,<\/p>\n<p>&#8220;If you could have some sort of incentive for businesses &#8230; to encourage adoption of EVs by that first-hand business fleet, because they are flipping their fleet typically within three to five years.&#8221;<\/p>\n<p>In a statement, Motor Industry Association (MIA) chief executive Aimee Wiley said her organisation supported retaining the standard, &#8220;with the emissions trajectory recalibrated to reflect domestic affordability and realistic product availability&#8221;.<\/p>\n<p>The framework needed to be &#8220;credible, stable, and workable in New Zealand&#8217;s small, import dependent market&#8221;.<\/p>\n<p>&#8220;This is not about reducing ambition,&#8221; Wiley said.<\/p>\n<p>&#8220;It is about ensuring the settings work for importers and distributors as well as consumers, are durable over the long term and aligned with market realities, including affordability, supply, and demand conditions.&#8221;<\/p>\n<p>Stability and clarity were particularly important, she said.<\/p>\n<p>The industry supported aligning with Australia if it reduced &#8220;regulatory friction&#8221; but New Zealand&#8217;s rules needed to reflect the country&#8217;s own market conditions.<\/p>\n<p>&#8220;We remain committed to constructive engagement with the Ministry [of Transport] to ensure the CVS scheme continues to support steady, measurable emissions reduction in a way that provides certainty for industry and consumers.&#8221;<\/p>\n<p><a href=\"https:\/\/radionz.us6.list-manage.com\/subscribe?u=211a938dcf3e634ba2427dde9&amp;id=b3d362e693\" rel=\"nofollow noopener\" target=\"_blank\">Sign up for Ng\u0101 Pitopito K\u014drero<\/a>, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.<\/p>\n","protected":false},"excerpt":{"rendered":"Photo: 123RF The government is considering scrapping the clean car standard altogether, months after slashing the fees importers&hellip;\n","protected":false},"author":2,"featured_media":275695,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[48,47,111,43,139,69,49,46,44,45],"class_list":{"0":"post-312929","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-zealand","8":"tag-audio","9":"tag-current-affairs","10":"tag-new-zealand","11":"tag-news","12":"tag-newzealand","13":"tag-nz","14":"tag-podcasts","15":"tag-public-radio","16":"tag-radio-new-zealand","17":"tag-rnz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/312929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=312929"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/312929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/275695"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=312929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=312929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=312929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}