Five Million Voices

Should the Clean Vehicle Standard's compliance rules be loosened by extending carbon credit lifespans and allowing credit transfers between new and used vehicle importers?

The bill amends the Clean Vehicle Standard within land transport law to change how carbon credits are managed for vehicle suppliers, with the stated aim of meeting annual CO2 targets while reducing costs to suppliers and consumers.

⚡ Taken under urgency

Parliament advanced this bill under urgency (committee of whole house, second reading, third reading) — moving it through faster than usual, with less time than normal for public submissions.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued the standard's settings were structurally misaligned with the vehicles New Zealanders wish to purchase, citing submissions from the motor vehicle industry.
  • Supporters said the changes would make compliance easier and improve affordability and choice for vehicle buyers.
  • Supporters framed the measures as providing flexibility and balance for vehicle suppliers within the regime.
Why oppose it
  • Opponents argued extending carbon credit lifespans from three to four years undermines annual accountability and slows decarbonisation.
  • Opponents said allowing credit transfers between new and used importers at a two-for-one rate risks increasing imports of higher-emitting used vehicles.
  • Opponents cited modelling suggesting that by 2035 the changes could mean tens of thousands fewer electric and plug-in hybrid vehicles, raising long-term fuel costs and emissions.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

The Land Transport (Clean Vehicle Standard) Amendment Bill (No 2) changes the Clean Vehicle Standard, the scheme under the Land Transport Act 1998 that sets annual carbon dioxide (CO2, a greenhouse gas) targets for the vehicles that importers bring into New Zealand. Under the standard, importers who bring in higher-emitting vehicles must offset them with low-emission ones or pay a charge. The bill lowers the per-gram CO2 charge that importers pay when they miss their target (to about $15 per gram) and adjusts the emissions targets themselves. The stated purpose is to reduce costs that the government says are being passed on to buyers, particularly of cheaper vehicles, because importers cannot source enough used electric vehicles to earn the credits needed to offset their charges. It mainly affects vehicle importers and dealers, and indirectly the people buying vehicles.

This is a government bill from the Minister of Transport. The main argument in favour is that it makes the scheme work as originally intended by cutting charges (the government cited around 86% of importers facing net charges averaging roughly $1,226 per vehicle) and easing prices for consumers. The main argument against, put by Labour and climate advocates, is that it simply weakens the emissions targets rather than actually lowering emissions, and so undermines New Zealand's climate commitments while doing little to shift the vehicle fleet toward cleaner options.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Land Transport (Clean Vehicle Standard) Amendment Bill (No 2) · Second Reading, 18 Nov 2025
Parliament voted 68–55 — it passed.