8 Mar 2023

Clean Car Programme from 1 April 2022

An update on the NZ Governments Clean Car Program.

The NZ Government has announced new measures to take action on reducing transport emissions to help meet New Zealand’s 2050 carbon neutral target. NZ’s goal is to be carbon neutral by 2050 and the Government has committed to reducing greenhouse gas emissions (primarily carbon dioxide CO2) to 30% below 2005 levels by 2030.​

The Clean Car Standard is a government target that regulates importers to reduce CO2 emissions of vehicles entering New Zealand to specific standards and targets. This will be in place late 2022. 

The Clean Car Discount will consist of rebates and fees for imported new and used vehicles based on CO2 emission ratings from 1 April 2022. This comes into force on 1 April 2022. Points to know are:

• Buyers purchasing high CO2 emission vehicles will pay a higher price in recognition of the increased environmental and economic costs they are imposing.
• The higher the CO2 rating, the greater the fee.
• Buyers choosing zero or low-emission vehicles will receive a rebate - the lower the emissions the greater the rebate.
• The Clean Car Discount is intended to be cost neutral with fees charged offsetting discounts given.

Clean Car Discount 

The Clean Car Discount will impose discounts, charges, or neither on passenger and  light commercial vehicles depending on their emissions

• Vehicles with an emissions rating 146g and below may be eligible for a rebate
• Vehicles with an emissions rating between 147g and 191g will not incur a rebate or fee
• Vehicles with an emissions rating of 192g or above will incur a fee. This fee will be payable at vehicle registration

Rebate Eligibility

• Vehicle with an emissions rating of 146g (3p-WLTP) or below
• New or Used Import first registered from the 1 April 2022
• Passenger and light commercial vehicles (Cars, SUV’s Vans, Utes and light trucks) up to 3,500 kg Gross Vehicle Mass (GVM)
• Vehicle must cost less than $80,000, including GST and on-road costs
• 3 stars or more safety rating

How it works for rebates

• Any existing vehicle that has been ordered and meets the eligibility criteria, and is registered and delivered before or after 1 April 2022 will be subject to the Clean Car Discount Rebate. 
• For an Operating Lease Agreement, any rebate available under the Clean Car Discount will be automatically included in the lease at the quote stage and factored into the monthly lease payment.
• The Customer will need to sign a Clean Car Discount Acknowledgment which is included with our quote.

Fee Information

Buyers purchasing or leasing high CO2 emission vehicles will pay a higher price due to the negative effect on CO2 emissions. The higher the CO2 rating the greater the fee.

Fee Criteria

• Vehicles with an emissions rating of 192g (3p-WLTP) or above
• Applies to New or Used Imports first registered from the 1st of April 2022
• Passenger and light commercial vehicles (Cars, SUV’s Vans, Utes and light trucks) up to 3,500 kg Gross Vehicle Mass (GVM)
• Max fee capped at $5175 (Inc GST) for New imports

How it works for Fees

• Any fees payable under the Clean Car Discount will be automatically capitalised into the lease at the quote stage within and factored into the monthly lease payment.
• The vehicle supplier (Dealer) will pay for the fee during the registration process and re-charge this to FleetPartners in the final invoice.
• No upfront payment is required by the customer as the fee has been built into the lease.

Useful Links

Ministry of Transport Clean Car News - https://www.transport.govt.nz/area-of-interest/environment-and-climate-change/clean-cars/
Industry Calculator - https://dealer.rightcar.govt.nz/
Right Car Vehicle Info - https://rightcar.govt.nz/

Further information on the Clean Car Programme can be found here.

Important Information: information is current as at 14-03-2022 and subject to change.