The recent announcement by the Minister of Transport Hon Simeon Brown regarding changes to New Zealand’s Clean Car Importer Standard is a positive step forward. VIA welcomes this initiative as it aligns with the advice we have provided to the government concerning the future supply of electric and low-emission vehicles. This alignment benefits both our industry and New Zealand consumers.

The interactive consultation process that informed the Ministry’s advice to the Minister was greatly appreciated, and we are grateful for the consideration given to our submission. The productive dialogue between the industry and government has been instrumental in shaping policies that address our unique market needs.

While we understand the Government's desire to harmonize standards with Australia, we must emphasize that the needs of vehicles in these two jurisdictions are markedly different. We urge the Government to consider stronger alignment with Japanese standards due to the substantial proportion of our vehicles sourced from Japan, both new and used.

Key Decisions from the Government Review:

1. Targets Adjustment: The 2025–2027 CO2 emission targets were deemed too stringent. The Government has decided to align New Zealand's targets with those of Australia, easing the targets for a more achievable framework. CO2 emission targets will change each year from 2025 to 2029, starting at 112.6 grams CO2/km in 2025 and aiming for 65 grams CO2/km by 2029 for passenger vehicles. Commercial vehicles will have targets starting at 223 grams CO2/km in 2025 and aiming for 131 grams CO2/km by 2029.

   Analysis: These adjustments will enable the used vehicle import sector to access a better range and volume of vehicles over the next few years. The original targets would have severely limited the ability for importers to bring affordable, quality vehicles to New Zealand. By easing the targets, importers can now maintain a diverse inventory that meets consumer demand without compromising on price or availability.

2. Weight-Adjusted Targets: The review proposes to stop weight-adjusting the targets for passenger vehicles by 2027, depending on 2025 vehicle registration data. Weight-adjusted targets for commercial vehicles will continue for a few more years.

3. Flexibility Measures: Emission credits' lifespan will be extended from three to four years. Credit transfers between new and used vehicle sectors will be permitted starting in 2026.

4. Disability Vehicles Exemption: Disability vehicles will be exempt from the Clean Car Standard starting January 1, 2025.

5. Implementation Timeline: Changes will be implemented progressively with key legislative changes expected by mid-2024 and full implementation by 2026.

VIA remains committed to working with the Ministry of Transport and the New Zealand Transport Agency (NZTA) to ensure the transition to sustainable transport solutions considers the unique characteristics of our market. Our goal is to achieve a balanced and effective approach that benefits consumers, the industry, and the environment.

Thank you for your continued support.