New Zealand's $27.5 Million Fund for Low Emissions Heavy Vehicles
Key Ideas
- New Zealand's government has launched a $27.5 million Low Emissions Heavy Vehicle Fund (LEHVF) to support the purchase of low and zero-emission heavy vehicles.
- Organizations can now offset up to a quarter of the purchase price for eligible vehicles such as battery electric, hydrogen fuel cell electric, or hydrogen diesel dual fuel vehicles.
- The fund includes $5 million specifically earmarked for hydrogen-diesel dual fuel and plug-in diesel-electric hybrid vehicles that meet at least 30% emissions reductions.
- The LEHVF initiative is subject to review after six months and may see changes in criteria and funding caps, with updates communicated in advance to the market.
Transport Minister Simeon Brown and Minister of Climate Change Simon Watts have introduced New Zealand's new $27.5 million Low Emissions Heavy Vehicle Fund (LEHVF) aimed at promoting the adoption of low and zero-emission heavy vehicles. The fund seeks to address the high upfront costs and unknown total ownership costs that hinder the uptake of such vehicles. Eligible vehicles for funding include battery electric, hydrogen fuel cell electric, and hydrogen diesel dual fuel vehicles with a gross vehicle mass (GVM) of 5.9 tonnes or higher.
The fund allocates $5 million for hydrogen-diesel dual fuel and plug-in diesel-electric hybrid vehicles that achieve a minimum of 30% emissions reduction. The Energy Efficiency and Conservation Authority (EECA) will oversee the fund, with grants capped at $4 million per vehicle importer/supplier for the first year. Caps for subsequent years will be determined by March 31, 2025, considering vehicle categories, GVM, and energy usage.
Marcos Pelenur, Chief Executive of EECA, highlighted that the initiative will be reviewed six months post-launch, indicating potential changes in criteria and funding caps, which will be communicated in advance. The exclusion of certain vehicle categories, like diesel electric heavy vehicles with limited emissions impact, was explained to ensure a focus on impactful emission reductions.
This fund aligns with New Zealand's goal to tackle greenhouse gas emissions, with estimates showing significant potential emission savings by transitioning diesel-only vehicles to low and zero-emission alternatives. The LEHVF signifies a proactive step towards sustainability and cleaner transportation in New Zealand's heavy vehicle sector, demonstrating a positive outlook on embracing innovative technologies for environmental benefit.
Topics
Fuel Cells
Climate Change
Sustainability
Energy Efficiency
Funding
Transportation
Government
Greenhouse Gas Emissions
Vehicle Technology
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