Monday, May 27, 2024

Govt steers changes to Clean Car discount

The Government has announced targeted changes to ensure its Clean Car Discount policy keeps driving down emissions.

Transport Minister, Michael Wood said the scheme was successfully exceeding industry and Government projections, with 20% of all new passenger car sales being electric in 2022 – an increase from 8% in 2021.

“With over 100,000 rebates granted since the scheme came into effect in 2021, we currently have one of the fastest uptakes of EVs in the world,” said Mr Wood.

“The scheme is facilitating an increase in the number of EVs entering the fleet we did not expect until 2027. As planned we are further targeting the scheme to maintain its success, and ensure it will be self-funding until its next review.”

He said the Government was targeting rebates for new and used imports emitting less than 100 grams of CO2 per kilometre compared to 146 grams under the original scheme. This will include battery electric vehicles, and plug-in hybrids.

“The rebate for used EV imports will also increase, meaning New Zealanders will save up to $3,507 per vehicle, helping many low and middle income New Zealanders get into lower emitting vehicles they otherwise couldn’t afford.”

The scheme is forecast to save New Zealand from importing 1.4 billion litres of petrol.

“At current prices the economy will save an average of $325 million a year less on fuel, out to 2035,” the Minister said.

“Our transition away from fossil fuels to New Zealand generated renewable energy is crucial to tackling the cost-of-living crisis long-term. Switching to an EV is like buying petrol for 40c/litre, which can make a big difference to household budgets.

“To fund the changes to make it easier for New Zealanders to purchase cleaner imports, we’re adjusting charges on high emissions vehicles. This includes vehicles like utes which are amongst the highest emitting vehicles within our fleet.”

The threshold vehicles will be subject to charges will reduce from 192 grams of CO2 per kilometre to 150 grams, and charges will increase. New and used imports that meet or exceed the threshold will attract charges, Mr Wood confirmed.

“The scheme is also now forecast to reduce emissions by 3.4 million tonnes by 2035.  That’s an additional 50% out to 2035 over and above what was forecast when it started. It will deliver twice the emissions reduction forecast between the start of the scheme and 2025.

“The Clean Car Discount is doing what we set out to achieve, which is reduce transport emissions and provide transport options to New Zealanders that will lower household costs is the long term,” the Minister said.

More information about changes to the Clean Car Discount, including an updated rebate/charge pricing calculator, is available on the Ministry of Transport website.

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