Govt proposing to make clean cars cheaper to tackle climate change

The Government is proposing to make electric, hybrid and fuel efficient vehicles more affordable so New Zealand families can choose a vehicle that’s better for the climate and their back pocket.

“The cars, utes and vans we use every day are also the fastest growing source of harmful climate pollution and account for nearly 70 percent of our transport emissions,” said Associate Transport Minister Julie Anne Genter.

“Most Kiwis want to buy a car that’s good for the environment, but tell us the upfront cost and limited choice makes it a challenge.

“This is about making cleaner cars a realistic choice for more New Zealanders – by reducing the upfront cost of electric, hybrid and fuel efficient vehicles when sold in New Zealand for the first time.

“Discounts will be financed in the fairest way possibly - by putting a small fee on the highest polluting vehicles when they’re sold in New Zealand for the first time. This means people will still have choice, while contributing to the task of cleaning up the vehicles coming into New Zealand.

“New Zealanders have also told us they want more climate-friendly vehicles to choose from, so we’re also proposing that vehicle suppliers be required to import more fuel-efficient vehicles every year.

“Vehicles already registered in New Zealand would be exempt from these policies when on-sold in the second hand market – so more than 70 percent of vehicles sold each year won’t be affected by these proposals.

“These changes would prevent more than 5 million tonnes of dangerous climate pollution going into our atmosphere and would make a major contribution to meeting New Zealand’s climate targets.

“The benefits of these policies would flow on into the second hand market as more fuel efficient hybrid and electric vehicles are sold on.

“These policies are expected to save the country more than $3.4 billion in fuel and result in fuel savings of more than $6,800 over the lifetime of an average vehicle”.