What's the Clean Car Standard, and why does the car industry want politicians to stop changing it?
Transport Minister Chris Bishop has confirmed the Clean Vehicle Standard will stay, but motor industry groups want all parties in Parliament to agree on vehicle emissions rules so the rules stop changing every time the government does. One industry leader called the back-and-forth "flip-flop jandal politics" (RNZ).
The Clean Vehicle Standard is a rule that charges importers a fee if the vehicles they bring into New Zealand produce too much carbon dioxide. Importers can avoid the fee by also bringing in cleaner, lower-emissions vehicles. It sits alongside the Clean Car Discount, which started in 2021 and gives rebates or charges based on how much carbon a vehicle produces (Ministry of Transport).
In November 2025, Bishop cut the penalty by nearly 80 percent. He said importers could not get enough low-emissions vehicles to avoid being charged (RNZ). The penalty now sits at about $15 for every gram of carbon dioxide over the limit. Australia's equivalent scheme charges between $50 and $100 per gram.
Drive Electric chair Kirsten Corson welcomed the decision to keep the standard, calling it "the right call". She said getting rid of it would leave Aotearoa alongside Russia as the only countries without such a rule. But Corson said the industry was struggling to keep up with the shifting settings (RNZ).
Motor Trade Association chief executive Lee Marshall was more measured. He said the standard had been "too aggressive, too punitive" before the penalty cut, and unrealistic given what importers could actually source. But he said the Clean Vehicle Standard was "the right tool to use" and wanted targets that were aspirational but achievable (RNZ).
Marshall said the government planned to finish public consultation on new targets in 2027, with the targets taking effect from 1 January 2028. He called for cross-party agreement on the emissions limits, saying it would be good "for the future of the auto industry" and would stop transport being a political football (RNZ).
The Motor Industry Association (MIA) welcomed the government's reset of the standard, saying it would "restore balance and support real emissions progress" (OICA). MIA had estimated compliance costs at about $125 million in 2025, rising to about $153 million in 2026, based on $67.50 per gram of carbon dioxide. Those figures were worked out before Bishop cut the penalty in November 2025.
The Ministry of Transport has prepared a Regulatory Impact Statement titled "Revising the Clean Car Importer Standard Targets", with a separately released annex (Ministry of Transport). The original Cabinet proposal for the standard sought agreement to introduce a vehicle import CO₂ standard, and the government proposed phasing it in for a year without charges to give the industry time to adjust (Ministry of Transport). A Stage 1 Cost Recovery Impact Statement was also prepared for the standard's administration (Ministry of Transport).
The standard has had a bumpy ride. Labour brought it in with ambition and a charge-free first year. The coalition government then cut the penalty sharply. Now Bishop has confirmed it will stay, with new targets to follow in 2028. Car importers order vehicles months or even years ahead, so each policy shift costs them money.
The comparison with Australia makes the picture clearer. Australia's penalty rate of $50 to $100 per gram is three to nearly seven times New Zealand's $15. Whether that gap narrows will depend on the 2027 consultation and whatever targets come out of it.
What the industry is really asking for is certainty that the rules will not change every election. Marshall's description of transport as a "political football" reflects a sector that has watched the standard survive a change of government, absorb a near-80 percent penalty cut, and face another round of target-setting — all within about five years of starting.
Whether Labour and the coalition parties can agree on emissions limits is an open question. Neither side has publicly backed Marshall's cross-party proposal. But with consultation not due to finish until 2027 and targets not taking effect until 2028, there is plenty of time to negotiate.
