{"id":313365,"date":"2026-03-05T00:24:09","date_gmt":"2026-03-05T00:24:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/313365\/"},"modified":"2026-03-05T00:24:09","modified_gmt":"2026-03-05T00:24:09","slug":"government-considering-scrapping-entire-clean-car-standard-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/313365\/","title":{"rendered":"Government considering scrapping entire clean car standard"},"content":{"rendered":"<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>By Kate Newton of <a href=\"https:\/\/www.rnz.co.nz\/news\/political\/588668\/government-considering-scrapping-entire-clean-car-standard\" target=\"_blank\" rel=\"nofollow noopener\">RNZ<\/a><\/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>That penalty was slashed by nearly 80% ast 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 just reported the first six months of data 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 what&#8217;s happening with oil prices.&#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 class=\"text-greyDarkFaded\">The morning&#8217;s headlines in 90 seconds, including the US sinks an Iranian warship killing dozens, help is on the way for stranded New Zealanders, and Finn Allen powers the Black Caps to a T20 World cup final. (Source: 1News)<\/p>\n","protected":false},"excerpt":{"rendered":"The government is considering scrapping the clean car standard altogether, months after slashing the fees importers pay to&hellip;\n","protected":false},"author":2,"featured_media":313366,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[1667,42,43,135,40,38,41,39,112],"class_list":["post-313365","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headlines","tag-energy","tag-headlines","tag-news","tag-politics","tag-top-news","tag-top-stories","tag-topnews","tag-topstories","tag-transport"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/313365","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=313365"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/313365\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/313366"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=313365"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=313365"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=313365"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}