New Zealand will retain its Clean Vehicle Standard after a first-principles review, while introducing separate CO₂ targets for used vehicle imports from 1 January 2028. Transport Minister Chris Bishop said the government will work with the vehicle industry to revise the settings so they better reflect market conditions and are achievable for importers.
The Clean Vehicle Standard establishes annual CO₂ emissions targets for vehicles imported into New Zealand. Importers whose vehicles exceed the applicable targets incur charges, while lower-emissions vehicles generate credits. Importers can manage their overall vehicle mix through the credit system, provided they avoid a net charge.
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Government Retains Clean Vehicle Standard
The first stage of the government’s review concluded that the Clean Vehicle Standard remains the most cost-effective mechanism for increasing the availability of lower-emissions vehicles in New Zealand.
Most industry stakeholders participating in the review supported retaining the framework. They pointed to the system’s established position within the vehicle-import industry and warned that removing it could create disruption for importers.
The decision provides policy continuity while allowing the government to reconsider how the emissions targets are calibrated.
Used Vehicles to Receive Separate Targets
A key change will be the introduction of separate targets for used vehicle imports.
The government said the distinction is intended to account for the different and generally older technology found in used vehicles compared with new imports.
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The current settings have created compliance challenges for many importers. A 2025 review found that most passenger-vehicle importers were struggling to meet their existing targets, indicating a mismatch between the regulatory settings and market conditions.
Separate targets are intended to address this structural difference rather than applying the same requirements across new and used vehicle imports.
Revised Settings Begin in 2028
The government will now consult with the vehicle industry on the revised settings.
Officials are expected to report back in early 2027, providing a period for the industry and government to work through the new targets before they take effect on 1 January 2028.
Transport Minister Chris Bishop said the objective is to establish settings that are realistic and achievable for the industry.
The 2028 implementation date also gives vehicle importers time to prepare for the revised requirements rather than introducing immediate changes to the existing compliance framework.
Policy Implications for Vehicle Imports
Retaining the Clean Vehicle Standard maintains the existing regulatory structure for vehicle importers while allowing significant changes to its future settings.
The decision also preserves the credit-based mechanism that allows importers to balance higher- and lower-emissions vehicles across their fleets.
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For the electric vehicle market, the continuation of the standard maintains a policy framework intended to increase the availability of lower-emissions vehicles. At the same time, the planned separation of used-vehicle targets recognises differences in vehicle age and technology within New Zealand’s import market.
The government will use the consultation process during 2026 and 2027 to determine the revised targets ahead of their planned implementation in 2028.