
The Government is taking action in line with the advice of the Climate Change Commission to increase the uptake of low emission vehicles by introducing a range of measures that will help meet New Zealand''s 2050 carbon neutral target and create jobs to support the economic recovery.
"New Zealand is actually lagging behind on the uptake of EVs, so we are playing catch up internationally. Our monthly registrations of EVs are around half the global average and sales are well below the 50 per cent of monthly sales seen in some European countries.
"It''s a common policy overseas, a recommendation of both the Climate Commission and the Productivity Commission, and is supported by the likes of the Motor Industry Association – it''s time to get moving with it.
"We''ve made some changes to the policy proposed last term, so only cars under $80,000 and safer models are eligible for rebates. Rebates will begin from July 1 while fees on higher emitting vehicles to help fund the scheme won''t begin until 1 January 2022. The rebates will also expand from 1 January to include low emission vehicles, not just electric and plug-in hybrids.
"Importantly the policy only applies to new and used cars arriving in New Zealand, so the existing second hand market of cars that lower income families tend to purchase from will not be affected.
"We''ve also been doing the work to ensure Kiwis have the confidence to go electric, with electric vehicle chargers now available on average every 75km along most state highways. The Government has been investing directly into charging facilities through the Low Emission Transport Fund (formally the Low Emission Vehicles Contestable Fund).
"The Low Emission Transport Fund has already co-funded over 1,100 electric vehicle chargers nationwide, and as part of Budget 2021 we''re increasing our investment so total funding for the programme will reach up to $25 million per year by 2023/24. Other projects using low emission fuels like biofuels and hydrogen, will also now be eligible for funding.
"Increasing the number of electric, hybrid and low-emission vehicles is a huge part of the work we are doing to build a low carbon Aotearoa in which people have clean, climate-friendly ways of getting around.
"In their final advice to Government, the Climate Change Commission said we need more low-carbon transport options that put our communities on the path to net-zero carbon emissions by 2050. However we recognise that with the additional cost, a low emissions vehicle can be out of the reach of many families. This is a particular challenge for those who rely on a car to get around.
"As technology develops and more manufacturers decide to stop making petrol and diesel cars, the cost of low emissions vehicles will come down. However at the moment they are still more expensive to buy. Today''s announcement helps to address that. It will ensure more families can enjoy the benefits of low emission vehicles and their lower maintenance and running costs.
"I would like to take the opportunity to acknowledge the work of my colleague Julie Anne Genter, whose work last term as Associate Transport Minister laid the foundations that got us here today," James Shaw said.
Latest data confirms that the Clean Car Discount is driving a big increase in electrified vehicle uptake and is making a real contribution to our climate goals, Prime Minister Chris Hipkins said today.
"Electrified vehicles now make up more than half of all new vehicles and used imports registered in New Zealand. The upsurge has been kick-started by the Clean Car Discount, and the climate benefits are all too clear: average emissions from newly-registered vehicles have dropped by nearly 33 per cent since July 2021.
"This Government''s Clean Car Discount policy is already contributing to New Zealand''s steady reduction in climate emissions, and that effect will accelerate as we continue to electrify the vehicle fleet. Removing the discount would put our climate goals in jeopardy," he said.
"The rate of EV and hybrid registrations is climbing - they accounted for more than 53 per cent of all new vehicle registrations since July, compared with 39 per cent between April 2022 and June 2023.
"The Clean Car Discount is the key factor in greening New Zealand''s vehicle fleet. Annual uptake of EVs and hybrids has risen by 180 per cent, compared with a 30 per cent decrease for petrol and diesel vehicles.
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