The New Zealand government is abandoning its CO2 targets for the light transport fleet under the Clean Car Importer Standard and will follow the Australian target instead.
Transport Minister Simeon Brown says aligning with Australian emission standards is logical.
“New Zealand and Australia are effectively one car market – so it makes sense to have the same approach to CO2 emissions standards between our two countries,” Brown says.
For passenger cars, next year’s weight remains the same at 112.6 grams before rising to 108 grams (over 84.5 grams) in 2026, 103 (instead of 63.3 grams) in 2027, and the Australian targets of 76 grams in 2028 and 65 grams in 2029.
The gap in commercials is massive. The target for 2025 rises to 223 grams (over 155 grams), in 2026 to 207 grams (over 116.3 grams), in 2027 to 175 grams (over 87.2 grams), and then the Australian targets of 144 grams in 2028 and 131 grams in 2029.
The move eliminates the penalties expected to hit Utes in 2025.
In addition to the realignment, the minister says they will pass legislation to provide more flexibility in using emissions credits and charges. The government has already confirmed it will pass the cost of using the system to importers.
It is still being determined if the penalties or credit costs will change. The current rate for New Zealand’s penalty grams is NZ$45 for fleet average users and NZ$36 for pay-as-you-go, while used vehicle importers pay half.
In Australia, the credit cost is $100.
The NZ government has confirmed it will commit to a promise to exempt disability vehicles as part of the changes.
Aside from making ‘ cleaner cars affordable,’ Brown justifies the move by pointing out that, according to ministry advice, the existing targets were unlikely to be met.
“Advice provided to me by the Ministry of Transport found that under current targets set by the former Government, CCS penalties are forecast to amount to approximately NZ$800.6 million cost to consumers purchasing a new car in 2027, which is around NZ$5,549 per vehicle,” Brown says.
“The review found that the Standard’s current targets are too stringent and are increasingly demanding for importers to meet, as they are out of step with manufacturing standards from leading vehicle manufacturers.
“The review found that the commercial targets for 2026 and 2027 are more stringent than every other country worldwide.
“If we don’t change the path we are on, we will simply pile costs onto consumers while failing to make emissions reductions,” he says.
