NZ Clean Vehicle Standard stays: what the 2028 reset means

The Government decided on 21 August 2026 to retain New Zealand's Clean Vehicle Standard for new and used vehicle imports. It will now work on settings that officials say should be realistic for industry, including different targets for used imports. New targets and settings are due to take effect from 1 January 2028.

The 21 August decision

The Clean Vehicle Standard sets annual carbon-dioxide targets for imported vehicles. The Government's announcement says importers whose vehicles exceed a target incur charges, while vehicles below target earn credits that can offset charges. The decision followed a first-principles review: the Government says the standard remains the most cost-effective way to increase the availability of lower-emissions vehicles, while industry feedback warned that removing it now would be disruptive.

That is a policy direction, not a new price list. Officials will engage with the vehicle industry and report back early in 2027. The announcement does not name the final targets, a particular model's future retail price, or a date when a dealer must change an advertised RRP.

What continues for an imported vehicle

NZ Transport Agency Waka Kotahi says the standard has applied since 1 January 2023. It covers most imported light vehicles, with defined exclusions, and requires an importer to manage a CO2 account. The importer may be a dealer, distributor, logistics company, or a member of the public bringing in a vehicle for themselves.

The standard compares a vehicle's emissions value with a target that depends on factors including vehicle weight and whether it is a passenger or commercial vehicle. A vehicle above the target produces a charge; a vehicle below it produces credits. NZTA lists two account structures: Pay As You Go, which settles vehicle charges as imports are accepted, and Fleet Average, which assesses the year's imported vehicles together.

For 2026, NZTA lists Pay As You Go rates of $12 per gram of CO2 above target for a new vehicle and $6 for a used vehicle. The Fleet Average rates are $15 and $7.50. Those are importer-side scheme rates, not a universal surcharge that can be added to every car's advertised price. A dealer may reflect its costs in a commercial price, absorb them, or manage them with credits; the policy announcement does not determine which choice a particular importer will make.

Why used imports get a separate target

The Government says used imports generally contain older technology, so it has agreed to set different targets for them. That does not make every used import chargeable, and it does not tell a buyer whether a particular Japanese, Australian, or other-market vehicle can be registered here. The vehicle still needs the correct emissions information, compliance evidence, and entry process for its import circumstances.

The distinction matters to businesses choosing between new stock and used imports. A different target could alter the credit or charge position of a vehicle, but the future formula is not published in the 21 August announcement. Until the 2027 settings work is complete, a buyer should not turn the decision into a forecast for one model's resale price or availability.

What a buyer should record now

When comparing a new car, save the exact New Zealand grade, advertised price, on-road-cost wording, powertrain, emissions figure, and offer date. Ask the seller whether the quoted price includes all charges that apply before registration. A public catalogue price remains a comparison reference, not a guaranteed drive-away offer.

If you are importing a vehicle yourself, confirm who will hold the Clean Vehicle Standard account, what emissions value NZTA will use, how any charge or credit will be settled, and whether the vehicle can complete entry certification. Do not assume that a lower-emissions overseas specification has the same evidence as the New Zealand-market version.

The unresolved question is the final 2028 target design: will it change the model mix and importer costs without moving the price of the particular vehicle on your shortlist? Recheck the Government's 2027 settings decision and the importer’s written offer before paying a deposit.

Sources

• Government to retain Clean Vehicle Standard — Beehive.govt.nz, 21 August 2026
• Clean Car Standard overview — NZ Transport Agency Waka Kotahi
• Credits, charges and payments — NZ Transport Agency Waka Kotahi
• Clean Cars — Ministry of Transport