CVS Targets Must be Achievable

That’s the response of the Motor Trade Association to the Government’s announcement today that it will retain the CVS.

MTA Head of Advocacy James McDowall says MTA had made the case consistently that a vehicle CO2 standard was worth keeping.

“We were pleased to be part of Stage 1, and MCERT has acknowledged that member input helped inform the decisions Cabinet reached,” Mr McDowall says.

Cabinet agreed to retain the CVS for both new and used vehicle imports, and to establish separate CO2 targets for used vehicle imports. Those separate targets will be developed as part of the upcoming Stage 2 review.

“There is a lot in this that we welcome,” Mr McDowall says. 

“We have long argued that it would be remiss not to have a standard – it remains the last policy lever we have to influence vehicle CO2 emissions, and it stops New Zealand becoming a destination for less fuel-efficient, higher-emission vehicles that cost our customers more to run.

“Retaining the Standard for both new and used imports keeps that lever in place.”

MTA had called for exactly what Stage 2 will consider: whether the CO2 targets reduce emissions and motoring costs faster while remaining achievable for the vehicle industry and maintaining vehicle availability, affordability, and choice for consumers.

“Achievability and certainty for the industry are now central to the next phase of work, which is what we asked for,” Mr McDowall says.

MTA had argued that used vehicle imports do not need to be treated differently under the Standard. Cabinet has instead decided to establish separate CO2 targets for used imports. 

“We will be engaging with officials to ensure any separate targets are grounded in market realities, do not disadvantage the used-import channel, and continue to protect affordability and choice for New Zealand motorists. To date the Standard has succeeded in shifting the vehicle mix towards hybrids; the test now is whether the next set of targets stays realistic,” Mr McDowall says.