Clean vehicle standard to stay

The government has announced it will retain the clean vehicle standard (CVS) for new and used imports after a review of how it works.

Officials will now engage with the automotive industry on settings and report back early next year. The work will inform new targets and settings due to take effect from January 1, 2028.

Chris Bishop, Minister of Transport, says it “became clear” in 2025 the settings for the scheme weren’t well-matched to market conditions.

“Most importers were struggling to meet the passenger vehicle targets, with the charges likely to be passed to consumers through higher car prices and reduced choice,” adds Bishop, pictured.

“At that time, the government made critical short-term changes to ease pressure on importers and keep cars affordable for New Zealand families and businesses. We also committed to complete a full first-principles review of the standard.”

The first stage of that review was carried out earlier this year. It found the CVS to be the most cost-effective way to increase the availability of lower-emissions vehicles in this country and most industry stakeholders which took part in it also supported retaining the scheme.

Bishop notes in feedback on the review that the car industry noted the standard is now well-established in New Zealand, with importers accumulating credits and charges over time. Removing it at this stage would be “highly disruptive” for the industry.

“The government has, therefore, decided to retain a standard and progress work to calibrate the settings so they are realistic and achievable for industry. The government has also agreed to set different targets for used-vehicle imports to reflect they have different and older technology.”