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Largest drop in new vehicle CO2 emissions since 2006, but not enough to avoid penalties coming in 2025

Business / news
Largest drop in new vehicle CO2 emissions since 2006, but not enough to avoid penalties coming in 2025
2022 Hyundai IONIQ 5 EV
2022 Hyundai IONIQ 5 electric vehicle. Source: hyundai.co.nz

New vehicle CO2 emissions in 2021 dropped 4.7% on the 2020 figure, the steepest drop since 2006, but it is not enough progress towards avoiding upcoming Government penalties and the domino effect these would have on sticker prices, says the Motor Industry Association (MIA).

MIA Chief Executive David Crawford says there were 25,194 new vehicles powered by some form of electrification sold in New Zealand last year. That was a 94% increase on the previous year, when 12,997 were sold.

The Government's Clean Car Standard already offers a 'carrot' to the purchasers of certain vehicles, in the form of the clean car discount, which has been available since 1 July 2021 and offers a financial kickback on purchases of new or newly imported electric vehicles (EVs) or petrol hybrid electric vehicles (PHEVs) until March 31.

From April 1 the Clean Car Discount will be based on the CO2 emissions of any individual vehicle and would include hybrids, which are currently excluded.

Vehicles with zero or low emissions would qualify for a rebate and those with high emissions would incur a fee, according to Waka Kotahi (NZTA).

This 'stick' end of the Clean Car Standard, became popularly known as the 'ute tax'.

For importers and suppliers, though the 2021 numbers are positive, they are not on track to avoid impending CO2 targets set by the Government as part of the Clean Car Standard which, incrementally between 2023 and 2025, will attract penalties for every vehicle imported that exceeds them.

“For our sector to reach the proposed 2025 target, we needed to have reduced our average emissions by 10% in 2021, not 4.7%,” says Crawford.

Even though the 94% increase in low emission sales is an impressive yearly figure, if the industry does not catch up, the "prices for vehicles will increase to offset the penalties faced by new vehicle importers,” he says.

Ahead of the second and third reading of the Land Transport (Clean Vehicles) Amendment Bill, the MIA called for the Minister to "review the targets so they remain challenging, not crippling."

Electric vehicles do not currently pay road user charges and are exempt until March 2024. This saves an electric vehicle driver approximately $720 per year compared to a diesel vehicle, according to Te Manatu Waka (Ministry of Transport). 

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12 Comments

A new electric car will provide you with all the thrill of a fridge. 

Electric cars are too clinical and too expensive for my liking. The gains achieved through lower carbon emissions are not sufficient to compensate for the sterile driving experience. 
 

TTP

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I find my EV more fun than folksy comments

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So you put the virtually value-less creature comfort of ride ahead of contributing to an existential threat.

 

Have you considered your personal priorities, and find this to be in line with them, or have you not looked closely at yourself? 

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TTP,

Utter nonsense and irrelevant. I have enjoyed driving for many decades, with Audi my favourite. I had 9 of them over a 30 year period.

We now have a Honda HRV Sports and a Nissan Leaf. We use this for almost all our local driving and its a very pleasant car to drive, not at all sterile-whatever that means. No, it doesn't make a vroom vroom noise, but that's only for juveniles anyway. Should I wish to, the Leaf will out accelerate most cars from the lights, but unlike some, I grew up a long time ago.

Where I could be accused of being somewhat childish is the pleasure I am getting from watching petrol prices increase.

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If you get the right ev, they are better in virtually every way. The only minor issue is the time it takes to charge. It isn’t as bigger deal as people think

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I'm busting a nut waiting to get my hands on a Tesla Model Y (LFP pack to be specific, currently only in SR variants).

I've never been more excited to get hold of a car, and relish the thought of ditching the noise, heat, fumes and vibrations of a combustion engine forever.

And then there's losing the feeling of guilt every time I start that petrol engine. Free to travel far and wide with a nearly clear conscience. Some of us care. Pity you don't.

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There are times when every marginal kw/h used to charge an EV is generated by coal. Is this included in the CO2 calculation?

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Hey, I think you need to put this in perspective.

 

A kwh of energy generated from petrol produces 2.4kg of C02.

To produce the same energy, on average, through NZ's grid, you'll produce 105 grams.

 

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Is the 105 grams the average across all sources of generation, or the actual extra coal to be burnt when Huntly is providing the marginal electricity to recharge a vehicle that has been subsidized as clean. Because it is the marginal generation that powers the additional load when an ice car is replaced with an ev.

Clearly electricity is the way things are going so we should be building more reliable renewable generation now. Not using coal to cover extra load.

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The coal percentage over time has remained consistent. Coal (and gas) are deliberately about 20% of our generation to allow consistent supply, even as demand increases. They will remain so until we build the Lake Onslow pumped hydro scheme. If you are against fossil fuel usage in our grid, write to your MP and demand they get on with Lake Onslow.

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They've really hurt these figures by delaying the rebates for Petrol Hybrids.

They were due 1st Jan, now supposed to be 1st April, but seems the announcements are done, but the mahi isn't yet. 

 

 

Also seems everyone has forgotten about the 'Ute Tax' - can't expect we'll see that land in 8 weeks, governments lost enough points lately without poking that bear again.

 

 

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The MIA are not a reliable source on this issue. They only care about their members' profit. The rebate only started in the second half year, so the full year results are not a fair reflection. EV market share went from 2% in the second half of 2020 to 7% in the second half of 2021. It could easily be 15% in the second half of 2022 (when the feebate starts) and 25% in 2023 (when penalties based on the fuel efficiency standard start).

My prediction is that the targets will be achieved easily.

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