Formal Opposition to
Land Transport (Clean Vehicle Standard) Amendment Bill (No 2)

(Government Bill 196–1, Chris Bishop)

From: Ukes Baha | 25 September 2025

Submitted in response to the call for submissions on the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2)


Summary of Position

I oppose the Land Transport (Clean Vehicle Standard) Amendment Bill (No 2) in its current form.

While the Clean Vehicle Standard was intended to reduce emissions from the light vehicle fleet, this Bill weakens its purpose. It delays action, creates loopholes, and distorts carbon accounting.

Core stance: The Bill extends credit lifespan (s 180), removes barriers between new and used import credits (ss 180, 184), extends borrowing beyond 2025, grants ministerial discretion without safeguards, and introduces manipulated credit exchange rules that destroy the integrity of carbon accounting.

Recommendation: Reject the Bill in its current form. If Parliament insists on proceeding, it must be amended to preserve genuine emissions reductions, restrict regulatory loopholes, and align with New Zealand’s Paris commitments and Te Tiriti obligations.


Constitutional & Democratic Framework


Clause-by-Clause Concerns

1. Extension of Carbon Credit Lifespan – Section 180

Bill reference: Extends lifespan from 3 to 4 years.

Problem: Allows importers to delay action by sitting on credits instead of improving fleets each year. Dirtier cars remain on roads longer while paperwork hides real emissions.

Position: Retain 3-year expiry.

2. Removal of Barriers Between New and Used Import Credits – Sections 180 & 184

Bill reference: Allows free transfer of credits between new and used accounts.

Problem: Creates loopholes where new importers buy their way out of responsibility while used importers profit without change. Compliance becomes financial trading, not emissions reduction.

Position: Maintain separation of new and used credits.

3. Extension of Borrowing Beyond 2025

Bill reference: Permits ongoing borrowing of future credits.

Problem: Lets importers flood the market with high-emission cars now on the promise of future offsets that may not occur. Vehicles imported today will lock in pollution for decades.

Position: End borrowing after 2025.

4. Ministerial Discretion

Bill reference: Empowers Minister to alter standards by regulation.

Problem: Weakens parliamentary oversight and allows standards to be diluted without scrutiny[1].

Position: Require substantive changes to be approved by Parliament.

5. Manipulated Credit Exchange Rules – Sections 180(3), 184(3)

Bill reference: One new credit = two used credits; two used credits = one new credit.

Problem: Arbitrarily inflates or deflates credits. A credit no longer equals one unit of CO₂. This encourages system gaming and undermines integrity.

Position: Delete artificial exchange ratios; one credit must equal one unit.

6. Market Distortion and Unfairness

Problem: Larger importers dominate by hoarding and trading credits while smaller PAYG importers are squeezed out[2].

Position: Level compliance to protect smaller operators.

7. Removal of Weight-Based Adjustment

Bill reference: Eliminates weight-adjusted CO₂ formula.

Problem: Favours heavier, dirtier vehicles (utes, SUVs) at the expense of lighter ones, fuelling “weight creep”[3].

Position: Reinstate weight adjustments.

8. Weak Regulatory Impact Assessment

Bill reference: Relies on RIS that only “partially met” quality standards[4].

Problem: Policy changes are built on flawed evidence.

Position: Commission a full independent RIS before legislating.

9. Policy Errors and Misapplication

Bill reference: Original scheme required motorcycles and mopeds to hold CO₂ accounts[4].

Problem: Shows poor drafting and oversight, raising risks of future anomalies.

Position: Ensure robust consultation and technical review before amending.

10. Cost Shifting onto Consumers

Problem: Importers may pass penalties onto buyers, raising prices while still importing high-emission vehicles[1].

Position: Ensure industry, not the public, bears compliance costs.


Anticipated Counterarguments


Conclusion & Recommendations

This Bill weakens the Clean Vehicle Standard at the very moment when urgent emissions cuts are needed. It creates loopholes, delays action, shifts costs to the public, and undermines both Te Tiriti obligations and international credibility.

Recommendations:

  1. Reject the Bill in full.
  2. If Parliament proceeds:
    • Retain 3-year credit expiry.
    • Maintain separation of new and used credits.
    • End borrowing after 2025.
    • Delete manipulated exchange rules (ss 180, 184).
    • Bind Ministerial discretion with statutory criteria.
    • Reinstate weight adjustments.
    • Require independent RIS before changes.
    • Protect small operators from market distortion.
    • Ensure industry, not consumers, pays compliance costs.

References

  1. Hansard, Land Transport (Clean Vehicle Standard) Amendment Bill (No 2) Debate, 2024–25 (Ministerial discretion, cost-shifting risks).
  2. VIA (Imported Motor Vehicle Industry Association), commentary on PAYG importer challenges, AutoTalk NZ, 2024.
  3. Driven Car Guide, “Further changes to NZ’s Clean Vehicle Standard: weight-based formula out,” 2024.
  4. Ministry of Transport, Cabinet Paper: Land Transport (Clean Vehicles) Amendment Bill No 2 – Approval for Introduction, 2024 (RIS quality, technical errors).

Respectfully submitted,
Ukes Baha
Public Health Advocate | Counsellor | Policy Analyst
ukesbaha.com