Source: New Zealand Government
The Low Emissions Heavy Vehicle Fund (the Fund) has been refreshed to better support New Zealand’s businesses in transitioning to a more resilient and efficient supply chain, Energy Minister Simon Watts says.
“Heavy freight represents a high-impact opportunity to reduce emissions and enhance energy efficiency on our roads.
“Globally, clean heavy freight is reshaping modern, competitive supply chains. We want to keep working on getting the market going here, so New Zealand businesses have more choices.
“Since we introduced the Fund, the landscape of clean heavy freight has evolved. In addition to battery electric trucks, which we see gaining traction in the market, hydrogen fuel cell trucks are now operating – particularly for heavier loads and longer distances.
“Reducing emissions for heavy freight is part of the Government’s second Emissions Reduction Plan and this initiative will accelerate uptake.
“For New Zealand to keep pace, coordinated action between government, industry, and infrastructure providers is essential. We need to show speed, and smart execution.
“By embracing these clean technologies, we can ensure the seamless movement of goods across the country, securing a sustainable transport future for New Zealand.”
Key improvements include:
Expanded Vehicle Categories: the medium and heavy vehicle categories now start at 12 tonnes gross vehicle mass, allowing a broader range of vehicles to qualify for higher support levels.
Broadened Eligibility for Conversions: Vehicles registered in New Zealand within the past five years are now eligible for grants covering up to 25 percent of the cost to convert existing internal combustion engine vehicles to low or zero-emissions technologies.
Increased Grant Levels: To further encourage uptake, grant levels for zero-emission conversions, new hybrid vehicles, and hybrid conversions have been increased.
“In line with these changes to the Fund, the Government is also rewarding businesses who make new investments by reducing their tax bills in the year they purchase new assets. Investment Boost will support investment in projects and the uptake of low emissions technology – including hydrogen,” Mr Watts says.
The Low Emissions Heavy Vehicle Fund is administered by EECA. The changes follow a planned review undertaken earlier this year to assess the fund’s performance against its original objectives. EECA made a range of recommendations which are now in place as part of the Fund’s refresh.
