Clean Car Discount scheme ends

The Clean Car Discount (CCD) scheme, integral to New Zealand's commitment to environmental sustainability, concluded on 31 December 2023. We delve into the scheme's objectives, financial underpinnings, impacts, and its synergy with the ongoing Clean Car Standard.

The Clean Car Discount Scheme

The CCD was designed to incentivise the purchase of low-emission vehicles through rebates and discourage high-emission vehicles with fees. Its closure marks a significant point in New Zealand's automotive and environmental policy landscape.

Eligibility and Operation: Vehicles registered by 31 December 2023 were eligible for CCD incentives, promoting the shift towards electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs).

Types of Rebates and Fees

The CCD scheme introduced a financial mechanism to encourage the adoption of low-emission vehicles and penalise high-emission ones through the following incentives:

Rebates for Low-Emission Vehicles: The scheme offered rebates up to $8,625 for new electric vehicles (EVs) and up to $3,450 for used EVs, depending on their emission levels.

Fees for High-Emission Vehicles: High-emission vehicles were subjected to fees ranging from $1,150 for slightly above threshold emissions to $5,750 for the highest emitting vehicles.

Financial Insights and Sustainability

The CCD's financial model was supported by government grants and fees from high-emission vehicles, highlighting the government's investment in sustainable transportation. Although the scheme did not achieve fiscal neutrality, it unmistakably spurred the sales of both new and used electric vehicles.

Funding and Expenditure: The scheme began with a Crown repayable grant of $301.4 million, with an additional $100 million allocated in Budget 2023.

Total rebates paid: $615.7 million, showcasing the scheme's extensive reach.

Impact and Effectiveness

The CCD significantly influenced New Zealand's vehicle landscape, evident in the increased registration of EVs and PHEVs, showcasing a tangible shift towards greener mobility options.

EV Uptake: The number of EVs grew from around 30,000 to over 73,000 by the end of the scheme.

The Clean Car Standard

Running parallel to the CCD, the Clean Car Standard aims to reduce CO2 emissions by setting import standards, ensuring a continuous push towards environmental sustainability.

Purpose: To incentivise the supply of cleaner cars in New Zealand, supporting the government's carbon neutrality targets.

Looking Forward

As New Zealand moves into a new phase of environmental policy, the focus will be on maintaining momentum towards sustainable transportation without the financial incentives provided by the CCD.

The CCD's legacy is a testament to New Zealand's proactive stance on environmental sustainability, leaving an indelible mark on the country's journey towards greener transportation solutions.