Government considering dumping Clean Vehicle Standard

Having already watered down the Clean Vehicle Standard last November, the National Government is now considering dumping the scheme outright.

RNZ reports that the Government is conducting a first principles review of the scheme, with transport minister Chris Bishop confirming to the outlet that dropping the standard entirely is “obviously” on the table.

If changes to the standard are judged to be needed, Bishop told RNZ that he expects a select committee process and public submissions. 

Originally named the Clean Car Standard, the scheme established penalties for high-emission new and used vehicles entering the country, penalties that could be counteracted by distributors and dealerships bringing in low-emission alternatives. 

The standard has received criticism over the years from some car brands and the used car market over CO2 targets some companies have previously labelled as unrealistic, and a used market with a limited pool of low-emission vehicles to choose from in the country’s lead source of used cars; Japan. 

Simultaneously, the standard has also been credited by some carmakers as integral in their bid to secure new electrified models for local sale. The introduction of the scheme was celebrated for bringing New Zealand in line with other countries with similar emissions standards.

Kirsten Corson, chair of electric vehicle advocacy group Drive Electric told RNZ that the group is “alarmed” by any plans to drop the standard, “because the rest of the world is going in the other direction.”

Edward Harvey, chief executive of electric vehicle charging company Evnex, described the updated as “quite astounding”, stating that this could see New Zealand “joining Russia as the only other OECD country without a vehicle emissions standard.” 

“I would hope that the current situation in the Middle East is giving the government pause for thought. As an isolated country dependent on imported fossil fuels, we urgently need to start factoring supply risk and price volatility into our energy policies,” Harvey added.

“EV technology is ready. We have the renewable generation. Let's see some common sense.”

Introduced by the previous Labour Government, the Clean Car Standard was introduced in tandem with the Clean Car Discount — a feebate scheme that gave discounts of up to $8,625 to customers purchasing low-emission vehicles. 

The discount was to be paid off via levies placed against high-emission vehicles, including double-cab diesel utes. It was scrapped by the current National Government when it came into power, with the likes of the Motor Industry Association and several electric vehicle advocacy groups linking the decision with the sharp market decline in local EV sales.