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"The Government’s changes to the CCS are a big step backwards at a time when we urgently need to speed up, not slow down."
As the statement said:
At the Climate Change & Business Conference 2023, then-opposition spokesperson Simon Watts confirmed National would honour the Paris Agreement, if it were to form a Government. A year later, as Minister for climate change, he stated that the Government didn’t inherit a plan to reach the 2030 targets. While technically correct–because the Emissions Reduction Plan was still under development–the Government has since taken decisions that make achieving our domestic target much more challenging.
The Government has dismantled the Government Investment in Decarbonising Industry (GIDI) and removed the Clean Car Discount (CCD). In doing so, it has weakened the incentives that helped businesses and households cut emissions, and it has slowed the shift to electric vehicles.
Road User Charges (RUCs) and ACC fees have been levied on EV buyers, and in July 2024 the New Zealand Clean Car Importer Standard was weakened to align with Australia’s Emissions Standards.
These decisions have also reduced consumer demand for EVs. Emissions from imported vehicles are rising again.
There is also a real financial risk: Treasury estimates Aotearoa could face a Paris Agreement liability of $3.3 billion to $23.7 billion in 2030 if we fail to meet our targets.
Minister Watts has previously suggested that paying this sort of money wasn’t politically palatable given New Zealanders would prefer to see that money spent on health and education. But not meeting them puts our trade relationships at risk. Both EU and UK free trade agreements include provisions that require New Zealand to support the Paris Agreement. We cannot support the Agreement if we do not intend to meet its requirements.
Drive Electric has previously commissioned research showing the long-term cost of removing the entire Clean Car Programme (Clean Car Discount and Clean Car Standard):
“A new Internal Combustion Engine (ICE) vehicle bought today will stay on roads for 20 years consuming costly oil and releasing emissions. Cumulatively, this research is telling us this will cost the economy at least $900m and probably more, and make it much harder to hit our 2030 emissions targets.”
Households, businesses and the wider economy all benefit from strong policy that accelerates decarbonisation — not from weakening it.
For these reasons, the Government’s changes to the CCS are a big step backwards at a time when we urgently need to speed up, not slow down.
Drive Electric chair, Kirsten Corson, has spoken widely in the media about the potential impact of these changes:
“The faster we get people into EVs the faster we end dependence on imported petrol and diesel, saving the economy and households billions of dollars every year. An electric transport future is a cheaper future for Kiwis. Charging a BEV at home is the cheapest way to drive a car 100km in Aotearoa.”
She also warned:
“We are going to become a dumping ground for high-emission vehicles.”
Drive Electric will continue to push for a strong, evidence-based emissions policy. Our work will include:
We will keep our members updated on our advocacy efforts, partnerships and next steps.
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