New Zealand Cuts Clean Vehicle Standard Charges to Lower Car Costs in 2026

The Government passed legislation today to slash the Clean Vehicle Standard’s charges and keep additional costs from being passed on to consumers.

We’ve acted quickly to put these temporary measures in place to avoid the risk of an estimated $264 million in net charges being passed on to New Zealand households and businesses, Transport Minister Chris Bishop says.

The Standard sets targets on vehicle CO₂ emissions - imposing charges on high-emission vehicle imports, while awarding credits on imported low-emission vehicles. The emission targets progressively tighten every year, to continually lift fuel efficiency.

However, right now the system isn’t working, with 86 percent of importers unable to meet the Standard without incurring additional charges on the vehicles they’re bringing in. The danger is that these extra costs will be added to vehicle prices.

The changes will come into effect 1 January 2026.

The changes, which were announced earlier this week, include: Temporarily slashing charges by nearly 80 per cent – from a top rate of $67.50 to $15 per gram of CO₂ for new vehicles, and from a top rate of $33.75 to $7.50 for used vehicles, for 2026 and 2027.

Protecting credits – ensuring none expire before 31 December 2028.

Launching a full review – with recommendations to Cabinet by June 2026.

These changes will mean that the import penalties applied to many popular vehicles will be significantly reduced. Depending on how much of the charge the importer can offset and how they price their vehicles, Kiwis could avoid thousands on the price of their vehicle.

These changes mean Kiwis can still upgrade to cleaner, more fuel-efficient cars, while giving us the space to make sure the Standard is actually workable and delivers a long-term, sustainable path to lower emissions that fits New Zealand’s needs.