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Auto Channel — Issue 94 September 2026

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ISSUE 94 SEPTEMBER 2026

THE VOICE OF THE NEW ZEALAND AUTOMOTIVE INDUSTRY

Clean Vehicle Standard retained, but the real fight starts now ​ ABINET HAS RULED OUT SCRAPPING THE CLEAN VEHICLE C STANDARD, BUT THE 2028 TARGETS THAT WILL DECIDE WHETHER IT ACTUALLY WORKS WON’T BE SETTLED UNTIL AFTER THE ELECTION THE DECISION

C

abinet has confirmed the Clean Vehicle Standard (CVS) will remain in place for both new and used vehicle imports, ending months of uncertainty over whether the Government would scrap the scheme altogether. Transport Minister Chris Bishop announced the decision on 21 August, alongside a commitment to set separate CO2 targets for used vehicle imports, a change to be worked through as part of the Stage 2 review. “The first stage of that review was carried out earlier this year,” Bishop said. “It found the Standard to be the most cost-effective way to increase the availability of lower-emissions

vehicles in New Zealand. Most vehicle industry stakeholders who took part in the review also supported retaining the Standard.” Officials will now engage with industry on settings, reporting back early next year; new targets are due to take effect from 1 January 2028.

HOW CLOSE IT CAME Retention was not a given. The review had scrapping the Standard on the table as a genuine option — a step that would have left New Zealand as one of only two OECD countries without a vehicle emissions standard, alongside Russia. It followed a rocky year for the scheme: in November 2025, the

Government cut CVS charges by roughly 80%, from $67.50 to $15 per gram of CO2 over target for new vehicles and from $33.75 to $7.50 per gram for used imports, after most importers found the original targets impossible to meet without passing costs on to buyers. Bishop acknowledged the pressure that led to that decision. “In 2025, it became clear that the Standard’s settings were not well matched to market conditions,” he said. “Most importers were struggling to meet the passenger vehicle targets, with the charges likely to be passed through to consumers through higher car prices and reduced choice.” Even so, industry feedback favoured keeping the framework rather than dismantling it: “Removing it at this

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Auto Channel — Issue 94 September 2026 by Via Media - Issuu