24 July 2026
Hon Chris Bishop
Minister of Transport
Parliament Buildings
Wellington
Dear Minister Bishop,
Thank you for your recent work committing to reducing EV FBT rates. The industry welcomes this demand-side policy and appreciates the Government’s support.
An area we would like to discuss is supply-side policy. Through an Official Information Act request, we reviewed the Clean Car Standard consultation responses and were heartened to see that a clear majority supported retaining the Standard.
Drive Electric is asking the Government to commit to maintaining and strengthening the Clean Car Standard (CCS).
The Strait of Hormuz crisis added significantly to what Kiwi families and businesses pay for fuel, with petrol prices rising by 18.6% and diesel prices by 42.6% in March 2026 alone. These were the largest monthly increases since Stats NZ began recording this data in 2011.
The CCS is our one policy lever for shifting the vehicle fleet onto our 88% renewable electricity supply. The Standard could be aligned with Australia’s New Vehicle Efficiency Standard, which the Australian Government has confirmed is delivering results.
We call on the Government to:
Clean Car policies once drove the combined EV market share above 20% in 2023. Since the Clean Car Discount was repealed, the Standard was weakened twice, and road user charges were applied to EVs, that share fell below 10% by 2025—while Australia pushed past us.
In 2024, the Government said its CCS changes were intended to align with Australia. Since then, we have further weakened the Standard. The CO2 penalty in New Zealand is now just NZ$15 per gram, compared with Australia’s AU$50–$100 per gram.
Australia is making this work, as evidenced by your Australian counterpart, Minister Catherine King, who has reportedly said that environmental and market objectives can coexist.
Weaker EV supply was a consequence of weaker demand policy, not its cause. Removing the Standard would only deepen the problem.
Monthly battery electric vehicle registrations more than tripled in March 2026 alone, while combined BEV and PHEV sales reached 33.6% of new light-vehicle sales that month.
Even with road user charges now applied across the board to all 138,600 EVs on our roads, operating an EV remains 25–50% cheaper than operating an equivalent petrol car.
However, a 2026 Sustainable Business Council and Climate Leaders Coalition report estimated that a successful transport transition could increase GDP by $22.6–$33.6 billion annually by 2050. The report identified policy uncertainty as the main barrier.
With no domestic refining, New Zealand depends on Asia for its fuel. The country spent $7 billion on fuel imports in 2025, with that figure expected to rise towards $10 billion in 2026. Around 60% of these imports have transited the Strait of Hormuz.
Combustion vehicles purchased today will still be on the road in 15–20 years, locking in that exposure into the 2040s. This is in addition to the estimated $10.5 billion annual social cost of vehicle emissions and Treasury’s estimated $4.4–$6 billion exposure from purchasing offshore carbon credits to meet our Paris Agreement commitments. Treasury’s 2023 modelling indicated that this bill could reach as high as $23.7 billion under less favourable conditions.
We are seeking policies focused on energy resilience and security.
Repealing the Standard would signal that New Zealand is not serious about energy resilience and would leave the country more exposed to the next oil shock.
Drive Electric welcomes the opportunity to work constructively with the Government on this issue. We would also welcome the opportunity to meet with you directly.
Yours sincerely,
Kirsten Corson
Board Chair
021 356 874
kirsten@driveelectric.org.nz
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