Local motor industry responds to proposed emission plan

Wednesday, 13 October 2021

Climate Change Minister James Shaw announces the Government has released its draft carbon-cutting ideas to the public, so everyone can have a say. Video first published October 2021.

The local motor industry has responded to the Government’s carbon-cutting ideas that were released to the public this morning.

The Government’s discussion document on the development of the plan includes a “cash-for-clunkers” scheme to help people trade in old higher-emission cars, congestion charges in Auckland and Wellington by 2025 with Christchurch coming in later on, funding for EV and ebike share schemes and lower fares for public transport.

Also in the discussion document is an emissions cap, above which a heavy-emitting vehicle would not be allowed into the country and a proposal to review fringe benefit tax exemptions for high-emitting vehicles, currently seen as an incentive for workplaces to buy double cab utes.

Exemptions to fringe benefit tax for work vehicles could be reviewed, as the policy may encourage the purchase of utes.

The document also includes a National Charging Infrastructure Plan and requiring a rising proportion of petrol at pumps to come from renewable sources, making fuel 15 per cent less polluting by 2035.

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David Crawford Motor Industry Association MIA

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Bringing forward an import ban on standard petrol and diesel cars to 2030 is also being considered, with hybrids being banned five years later.

The Motor Industry Association (MIA), the industry organisation the represents new car distributors in New Zealand says it welcomes the Government’s intent through their proposed emission reduction plan to implement policies that will lead to an achievable and sustained reduction in CO2 emissions from all sectors in New Zealand including vehicles as they enter the fleet and vehicles already in the fleet.

In a statement, David Crawford, CEO of the MIA said that the MIA and its members are committed to making transport greener.

Here is every new EV on sale in New Zealand now that qualifies for the Clean Car Discount.

“This is the business model we have been transforming into and will continue to do so with increasing speed.

“Having said that, we recognise more can be done to accelerate the reduction of emissions from transport over that gained under business as usual parameters,” he said.

He added that to do more than is possible under business as usual, however, will require the Government to leverage policies that are realistic and achievable to incentivise a faster rate of change.

“It is pleasing to see in the proposed emission reduction plan clear targets, proposals to develop an EV infrastructure plan and recognition that the Government needs to look at not just vehicles as they enter the fleet, but introduce measures to make it easier for vehicles in the fleet to reduce their emissions through greater availability of carbon-neutral fuels.

Mark Gilbert, chair of Drive Electric, said that while the Government’s proposal that 30 per cent of the entire light vehicle fleet will be electric by 2035 will take a lot of doing, but it’s possible, “and for the climate, definitely preferable.”

“We’re already seeing a surge in EV purchases here in New Zealand, on the back of the clean car discount,” said Gilbert.

“In September, while most of New Zealand was locked down, 2282 EVs were registered. This was the highest month of all time, achieving approximately 12.5 per cent of the monthly sales.”

Gilbert added that internationally, the UK, which is a right-hand drive market, is well ahead and shows New Zealand what’s possible, with more than 150 hybrdi, plug-in hybrid and EV models on the market. Plug-in sales in September made up 21.7 per cent of the market.

“To achieve these numbers and more, we will need supporting policies, many of which we have advocated for and are listed in the consultation document,” he said, adding that more detail is needed, but the ambition is there and progress has started.

“We are particularly pleased to see a National Charging Infrastructure Plan on the list, and we understand work is underway,” he said.

Gilbert pointed out that, when taken together, New Zealand is starting to send signals to the global automotive industry that it is serious about electrification.

“That’s how we will get a supply of these vehicles. The faster we can get a comprehensive plan in place, the faster we build the confidence of importers and consumers.”

He also took a swipe at Australian new vehicle distributors that have a huge influence on what vehicles manufacturers make available to our market, saying he hoped they “wake up and smell the electricity.”

“We can never forget that New Zealand is a technology taker when it comes to vehicles. That said, the global industry is on a rapid transformation. Billions are being invested in producing EVs, and brands like the VW Group, Hyundai, BMW, Daimler, Honda, GM, Volvo and Ford are committing to joining Tesla as all EV.

“We will be engaging our members on the package of policies over the next few weeks and submitting. But be very clear - the future for vehicles in New Zealand is electric.”