Option to scrap CCS

The government is considering abolishing the clean car standard (CCS) months after reducing the charges businesses pay to import some vehicles.

Drive Electric says if the idea goes ahead, New Zealanders could be sold “the high-emitting leftovers” that manufacturers can no longer sell across the Tasman.

The Motor Industry Association (MIA), meanwhile, is advocating for the CCS to be retained. However, it would like the scheme recalibrated to ensure it works for distributors, importers and consumers.

Chris Bishop, the Minister of Transport, says the government is carrying out a first-principles review, so “obviously” an option to scrap the standard is on the table, reports RNZ.

Penalties under the CCS were cut by the coalition in November with Bishop explaining supply constraints meant importers were unable to source sufficient numbers of low-emissions vehicles to avoid being penalised.

The decision was also based on thousands of extra dollars being passed on to buyers, said the minister, who added a full review of the standard would follow in 2026. However, he said it was unlikely the standard would be removed entirely.

A targeted consultation carried out for that review has just ended. It included asking submitters whether the CCS should be “abolished”.

The consultation included the automotive industry, overseas organisations, government agencies, some advocacy groups and experts on the subject. It wasn’t open to the public.

In a letter seeking submissions, the Ministry of Transport (MoT) stated the review was being carried out in two stages. The first was “a first principles review… to enable cabinet to decide to either retain the standard or abolish it”.

Submitters were asked whether they supported retaining a fuel-efficiency standard, and what the risks would be if it was abolished. 

Bishop says he has not received advice on the review, but will have more to say once the government has considered it and made decisions, reports RNZ. “If legislative change is required, I expect there would be a select committee process and public submissions.”

Drive Electric ‘dumping ground’ claim

Drive Electric was among EV advocacy groups asked to submit. Chair Kirsten Corson says: “We’re really alarmed there’s the potential of removing the standard completely because the rest of the world is going in the other direction.”

She adds Australia has just reported the first six months of data since its new-vehicle efficiency standard become mandatory. “Their overall emissions are dropping, and two-thirds of the car-makers could meet the 2025 emissions targets.”

Drive Electric’s submission warned that Australia’s success made it even more likely Aotearoa would become a “dumping ground” for less-efficient cars. “This ensures while Australians get the latest, most efficient technology from Thailand and Japan, New Zealanders are sold the high-emitting leftovers,” Corson told RNZ.

She adds the government’s claim buyers would be charged thousands of dollars more if the penalties had not been cut was “a false economy” because they are cheaper to buy but they cost more to own and more to operate, citing – for example – what’s happening with global oil prices.

A slump in demand for EVs had been driven directly by the coalition’s decision in 2023 to scrap the clean car discount, says Corson. She wants to see a revised version of that brought back, potentially targeting the 70 per cent of new-car sales made by businesses.

MIA backs keeping standard

The MIA supports retaining the CCS with the emissions trajectory recalibrated to reflect domestic affordability and realistic demand and supply.

In a statement to Autofile Online, Aimee Wiley, the MIA’s chief executive, says: “Our position is the framework should be strengthened through careful recalibration, so it remains credible, stable and workable in New Zealand’s small, import-dependent market. 

“This is not about reducing ambition. It is about ensuring the settings work for importers and distributors, as well as consumers, are durable over the long term and are aligned with market realities, including affordability, supply and demand conditions. Stability and clarity are particularly important in a market that relies entirely on global production systems.

“We support practical alignment with Australia when it reduces regulatory friction, while ensuring New Zealand’s pathway reflects our own market conditions. It is also important the framework remains coherent and fair across the whole market.

“We remain committed to constructive engagement with the ministry to ensure the CVS scheme continues to support steady, measurable emissions reduction in a way that provides certainty for industry and consumers.”

View on used imports

The Imported Motor Vehicle Industry Association (VIA) says the MoT has been meeting with stakeholders, including to discuss the framework and scope of the CCS review.

In last week’s edition of VIA View, Greig Epps, VIA’s chief executive, says: “VIA has told the ministry that we think the standard could still apply to new-vehicle distributors because that sector can influence production, specification and supply decisions, and therefore has a credible role in shaping future fleet composition. 

“However, it should not be used as the primary CO2 reduction mechanism for used-vehicle imports. Used vehicles are already built, and a CO2-at-import standard significantly affects supply, price and turnover (leading to fleet emissions remaining high) and has zero impact on global emissions outcomes. The review is still at an early stage. No options have been singled out or decisions made.”