Technical Standards

Vehicle and importer definitions: Part 13 of the Land Transport (Clean Vehicles) Amendment Act establishes two classes of light motor vehicles: “Type A” vehicles are designed to carry passengers, have fewer than nine seats, and typically consist of cars and SUVs. “Type B” vehicles, typically vans and utility vehicles (utes), are designed to carry passengers or goods and have more than nine seats. The Clean Vehicles Act also distinguishes between two different types of vehicle importers. Category 1 importers are in the business of importing light vehicles on a commercial scale, while Category 2 importers typically import one or a few vehicles for personal reasons. The Ministry of Transportation designates importers either Category 1 or 2 on a case-by-case basis.

Clean Vehicle Standard: The Clean Vehicles Amendment Act sets weight-based fleet-wide CO₂ emissions standards for Category 1 importers (in grams of carbon dioxide per kilometer) for type A and type B vehicles. The measures shown in table 1 have not been adjusted for fleet-wide average vehicle tare weight, which must be calculated by the importer using the equations below. is the weight in kilograms of the vehicle when it is empty of passengers and or cargo. A vehicle importer must calculate their fleet-wide compliance for each vehicle type separately. According to the second set of equations, category 2 importers must comply with the same standards outlined in table 1 but on a per-vehicle basis.

For fleets (Category 1 importers):

Supplier’s Type A fleet CO₂ target = annual Type A fleet target + a * (M – M₀)

Supplier’s Type B fleet CO₂ target = annual Type B fleet target + a * (M – M₀)

Where:

• a: The slope of the emissions limit line, which is derived through the correlation of vehicle tare weights and CO₂
• M: The weighted average tare weight in kilograms of all light-duty vehicles of a given type imported by the supplier.
• M₀: The weighted average tare weight in kilograms of all light vehicles imported (Type A or Type B depending on the target vehicle type)

For individual vehicles (Category 2 importers):

Type A CO₂ target = annual Type A vehicle target + a * (V – V₀)

Type B CO₂ target = annual Type B vehicle target + a * (V – V₀)

Where:

• a: The slope of the emissions limit line, which is derived through the correlation of vehicle tare weights and CO₂ emissions of the vehicles that entered New Zealand in the past year.
• V: The tare weight in kilograms of the vehicle
• V₀: The weighted average tare weight in kilograms of all light vehicles imported (Type A or Type B depending on the target vehicle type).

Testing

Part 13 of the Clean Vehicles Act specifies the three-phase variant of the Worldwide Harmonized Light Vehicles Test Procedure cycle (WLTP) as its approved test cycle for imported vehicles. New Zealand omits the cycle’s fourth, “extra high speed” phase (up to 131.3 km/h) since vehicles cannot legally achieve such speeds on NZ roads. More information about the WLTP cycle can be found on the WLTP page. As such, CO₂ emissions from these vehicles must be measured in grams per kilometer. If an imported vehicle’s emissions have been calculated using a different test cycle, the Ministry of Transport may estimate emissions that would have been expected if the vehicle had been tested with WLTP and use these figures to calculate compliance.

Compliance

Light vehicle importers that exceed CO₂ targets and do not have enough CO₂ emissions credits in their account to offset their deficit are subject to fines. From January 1, 2023, Category 1 importers out of compliance must pay NZ$22.50 per gram of CO2 above the target multiplied by the number of used vehicles in their fleet and NZ$45/gCO₂ above the target multiplied by the number of new vehicles in their fleet. From January 1, 2025, these rates increase to NZ$33.75/gCO₂ per used vehicle and NZ$67.50/gCO₂ per new vehicle. Category 2 importers face lower fines; NZ$18.00/gCO₂ for used vehicles and NZ$36.00 g/CO₂ for new vehicles in 2023, which changes to NZ$27.00/NZ$54.00 per gCO₂ in 2025.

Under the Clean Vehicle Standard, when an importer’s fleet-wide average emissions are below the applicable fleet target, they may bank the excess reductions in the form of credits and carry them forward to the following year. Unused banked credits expire three years after they are earned. Importers with these unused credits may transfer them to other importers. Credits generated from the certification of new vehicles may not be used to meet obligations for used vehicles and vice-versa.

For obligation years 2023-2025, Category 1 light-vehicle importers can apply to defer their fleet-wide target obligations to the following year. At the end of that year, the importer must ensure that they have met or bettered their fleet-wide standard in both that year and the deferral year.

Clean Car Discount Scheme

New Zealand’s bonus-malus or “feebate” program imposes taxes on the purchase of high CO₂ emitting vehicles while using tax revenue to give rebates to purchasers of low-emitting vehicles. The magnitude of rebates and taxes on used vehicles are lower than those that apply to new vehicles. For new vehicles, the maximum rebate is NZ$8,625 (€5,112) for emissions of 0 g CO₂/km and NZ$3,450 (€2,045) if official CO₂ emissions range between 1 and 56 g/km. For new vehicles with CO₂ emissions between 56 and 146 g/km, the rebate decreases linearly to a (€651). The fee for high-emitting new vehicles starts at 192 g CO₂/km at NZ$345 (€204) and increases linearly to a maximum of NZ$5,175 (€3,067) for cars emitting All subsidy and rebate amounts include GST (Goods and Services Tax), a 15% tax added to the price of most goods and services in New Zealand, including imports. Price conversions are based on the average NZ$ to Euro exchange rate, which was 0.593 in July 2022. Figure 1 displays the bonus and malus curves under the program in Euros, while Table 2 shows calculations for rebate and fee magnitudes.