Government Aligns Clean Car Importer Standard with Australia to Ease Costs

“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,” said Mr. Brown.

The Government is set to align the Clean Car Importer Standard with Australia to provide certainty for the vehicle import market and alleviate cost-of-living pressures for New Zealanders, announced Transport Minister Simeon Brown.

“The Government supports the Clean Car Importer Standard to ensure New Zealand has an affordable mix of clean vehicles. Following a comprehensive review, we will be making key changes to strike the right balance between reducing transport emissions and ensuring access to affordable vehicles,” stated Mr. Brown.

Advice from the Ministry of Transport indicated that under the current targets set by the former Government, CCS penalties could cost consumers around $800.6 million in 2027, equating to approximately $5,549 per vehicle.

“The review found the Standard’s current targets too stringent and increasingly difficult for importers to meet, as they are not aligned with manufacturing standards from leading vehicle manufacturers. In fact, the commercial targets for 2026 and 2027 are more stringent than those of any other country,” noted Mr. Brown.

Without changes, New Zealand risks increasing consumer costs while failing to achieve emissions reductions. The country’s reliance on international vehicle markets necessitates alignment with larger economies to ensure access to low-emission vehicles.

Starting 1 January 2025, the Government will implement changes to the Clean Car Importer Standard’s emissions targets for 2025-2029. These changes aim to balance stringent emissions targets with the practicalities of importers meeting them, thereby preventing higher vehicle prices:

Re-aligning the Standard’s emissions targets for 2025-2029 with Australia’s targets, with Commercial Vehicles aligning from 2026 and Passenger Vehicles aligning from 2027.

Passing legislation to introduce more flexibility in the use of the Standard’s emission credits and charges to support achieving the targets.

Exempting disability vehicles from the Standard as soon as possible after new regulations are made.

“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,” said Mr. Brown.

Additionally, exempting disability vehicles from the Standard ensures that New Zealanders with disabilities can access specialized vehicles without facing increased costs. “New Zealand’s disability community has been calling for these changes for some time, and our Government is delivering,” he added.