1	Title
2	Commencement
3	Principal Act
	Part 1 Amendments to principal Act
4	Section 167C amended (Regulations for purposes of Part 13 (clean vehicle standard))
5	Section 175 repealed (Targets for reducing carbon dioxide emissions)
6	Section 177 amended (Charges payable by category 1 light vehicle importer if carbon dioxide emissions targets exceeded)
7	Section 178 amended (Category 1 light vehicle importer may bank overachievement of carbon dioxide emissions target)
8	Section 179 amended (Category 1 light vehicle importer may defer obligation)
9	Section 180 amended (Category 1 light vehicle importer may transfer carbon dioxide credits)
10	Section 182 amended (Charges payable by category 2 light vehicle importer if emissions targets exceeded)
11	Section 184 amended (Category 2 light vehicle importer may transfer carbon dioxide credits)
12	Schedule 1 amended
	Part 2 Consequential amendments to Land Transport (Clean Vehicle Standard) Regulations 2022
13	Principal regulations
14	Regulation 3 amended (Interpretation)
15	Regulation 17 amended (Procedure and requirements for transferring carbon dioxide credits between accounts)
	Schedule New Part 9 of Schedule 1 of Land Transport Act 1998 inserted
	Legislative history
	Administrative information

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Land Transport (Clean Vehicle Standard) Amendment Act 2025.

2 Commencement

This Act comes into force on 1 January 2026.

3 Principal Act

This Act amends the Land Transport Act 1998.

Part 1 Amendments to principal Act

4 Section 167C amended (Regulations for purposes of Part 13 (clean vehicle standard))

(1)

Repeal section 167C(1)(j)(ii).

(2)

Replace section 167C(1)(j)(iii) with:

(iii)

formulas for calculating targets; and

5 Section 175 repealed (Targets for reducing carbon dioxide emissions)

Repeal section 175.

6 Section 177 amended (Charges payable by category 1 light vehicle importer if carbon dioxide emissions targets exceeded)

Replace section 177(2) with:

(2)

The charges are,—

(a)

from 1 January 2025,—

(i)

$33.75 per gram of carbon dioxide in excess multiplied by the number of used vehicles in the fleet; and

(ii)

$67.50 per gram of carbon dioxide in excess multiplied by the number of new vehicles in the fleet; and

(b)

from 1 January 2026,—

(i)

$7.50 per gram of carbon dioxide in excess multiplied by the number of used vehicles in the fleet; and

(ii)

$15.00 per gram of carbon dioxide in excess multiplied by the number of new vehicles in the fleet; and

(c)

from 1 January 2028,—

(i)

$33.75 per gram of carbon dioxide in excess multiplied by the number of used vehicles in the fleet; and

(ii)

$67.50 per gram of carbon dioxide in excess multiplied by the number of new vehicles in the fleet.

7 Section 178 amended (Category 1 light vehicle importer may bank overachievement of carbon dioxide emissions target)

Replace section 178(3) with:

(3)

Carbon dioxide credits banked in a vehicle importer’s carbon dioxide account expire on the later of—

(a)

the close of 31 December 2028; and

(b)

4 years from the end of the year in which the credits accrue.

8 Section 179 amended (Category 1 light vehicle importer may defer obligation)

Repeal section 179(1).

9 Section 180 amended (Category 1 light vehicle importer may transfer carbon dioxide credits)

(1)

In section 180(1), replace “another light vehicle importer who imports new vehicles” with “a light vehicle importer who imports new vehicles or a light vehicle importer who imports used vehicles”.

(2)

In section 180(2), replace “another light vehicle importer who imports” with “a light vehicle importer who imports new vehicles or a light vehicle importer who imports”.

(3)

Replace section 180(3) with:

(3)

If a transfer under subsection (1) or (2) involves a transfer between a carbon dioxide account relating to new vehicles and a carbon dioxide account relating to used vehicles, the transfer must be calculated as follows:

(a)

each credit transferred from a carbon dioxide account relating to new vehicles is receipted into a carbon dioxide account relating to used vehicles as 2 credits:

(b)

each set of 2 credits transferred from a carbon dioxide account relating to used vehicles is receipted into a carbon dioxide account relating to new vehicles as 1 credit.

10 Section 182 amended (Charges payable by category 2 light vehicle importer if emissions targets exceeded)

Replace section 182(2) with:

(2)

The charges are,—

(a)

from 1 January 2025,—

(i)

$27.00 per gram of carbon dioxide by which a used vehicle exceeds its target; and

(ii)

$54.00 per gram of carbon dioxide by which a new vehicle exceeds its target; and

(b)

from 1 January 2026,—

(i)

$6.00 per gram of carbon dioxide by which a used vehicle exceeds its target; and

(ii)

$12.00 per gram of carbon dioxide by which a new vehicle exceeds its target; and

(c)

from 1 January 2028,—

(i)

$27.00 per gram of carbon dioxide by which a used vehicle exceeds its target; and

(ii)

$54.00 per gram of carbon dioxide by which a new vehicle exceeds its target.

11 Section 184 amended (Category 2 light vehicle importer may transfer carbon dioxide credits)

(1)

In section 184(1), replace “another light vehicle importer who imports new vehicles” with “a light vehicle importer who imports new vehicles or a light vehicle importer who imports used vehicles”.

(2)

In section 184(2), replace “another light vehicle importer who imports” with “a light vehicle importer who imports new vehicles or a light vehicle importer who imports”.

(3)

Replace section 184(3) with:

(3)

(a)

each credit transferred from a carbon dioxide account relating to new vehicles is receipted into a carbon dioxide account relating to used vehicles as 2 credits:

(b)

each set of 2 credits transferred from a carbon dioxide account relating to used vehicles is receipted into a carbon dioxide account relating to new vehicles as 1 credit.

12 Schedule 1 amended

In Schedule 1,—

(a)

insert the Part set out in the Schedule of this Act as the last Part; and

(b)

make all necessary consequential amendments.

Part 2 Consequential amendments to Land Transport (Clean Vehicle Standard) Regulations 2022

13 Principal regulations

Sections 14 and 15 amend the Land Transport (Clean Vehicle Standard) Regulations 2022.

14 Regulation 3 amended (Interpretation)

In regulation 3, replace the definition of expiry date with:

expiry date, in relation to a carbon dioxide credit, means the date on which the carbon dioxide credit expires under section 178(3) or 183(2) of the Act

15 Regulation 17 amended (Procedure and requirements for transferring carbon dioxide credits between accounts)

Replace regulation 17(3)(b) with:

(b)

will expire in accordance with section 178(3) or 183(2) of the Act, despite the date of any transfer.

Schedule New Part 9 of Schedule 1 of Land Transport Act 1998 inserted

s 12

Part 9 Provisions relating to Land Transport (Clean Vehicle Standard) Amendment Act 2025

29 Interpretation

In this Part, amendment Act means the Land Transport (Clean Vehicle Standard) Amendment Act 2025.

30 Transitional arrangement for carbon dioxide credits banked in vehicle importer’s carbon dioxide account

Section 178(3) as amended by the amendment Act, and section 183(2) as it has effect following that amendment, apply to credits banked in a vehicle importer’s carbon dioxide account regardless of whether the credits are banked before or after the amendment Act comes into force.

Legislative history

18 August 2025		Introduction (Bill 196–1)
21 August 2025		First reading and referral to Transport and Infrastructure Committee
13 November 2025		Reported from Transport and Infrastructure Committee (196–2)
18 November 2025		Second reading, committee of the whole House, third reading
26 November 2025		Royal assent

This Act is administered by the Ministry of Transport.

Land Transport (Clean Vehicle Standard) Amendment Act 2025