New Zealand Plans Fees, Discounts to Drive EV Sales

New Zealand’s transport ministry plans to launch a “green car” program in 2021 that offers discounts for electric cars and impose new fees for high-emission vehicles.

The plan will pay incentives as great at NZ$8,000 ($5,300) to buyers of zero-emission passenger vehicles, Reuters reports. Consumers who opt for conventional cars that emit more than 250 grams of carbon dioxide per kilometer would pay an extra NZ$3,000 ($2,000).

The government plans lesser incentives and fees for imported used vehicles. Zero-emission models would be eligible for discounts as great as NZ$2,600 ($1,700), and piston-powered imports could be taxed as much as NZ$1,500 ($1,000).

The transport ministry also will consider gradually imposing its own annual CO₂ emission limits for new vehicles that would drop to 105 g/km by 2025, Reuters says. The current coalition government has called for zero net carbon emissions in New Zealand by 2050.

Cars, vans and SUVs contribute nearly 70% of emissions from New Zealand’s transport sector, according to the ministry.