Reduction of CO2 emissions not unexpected

Media release
22 July 2009

New vehicle industry expected current reduction in CO2 emissions

A recently-released Ministry of Economic Development report shows that the transport sector reduced carbon dioxide emissions by four per cent in the past year, which is positive news but not unexpected, according to Motor Industry Association.

Speaking on behalf of members of the Association, Perry Kerr notes that the four per cent reduction in CO2 emissions highlighted in the Energy Greenhouse Gas Emissions report was primarily brought about by the increasing price of fuel alongside the economic uncertainties facing New Zealanders and the world.

“It’s certainly noteworthy that CO2 emissions are lower,” says Kerr. “However this isn’t a result of any specific government policy at this point, but due to vehicle owners making rational decisions to plan journeys effectively and use their cars less.

“The Motor Industry Association has always advocated demand-driven policies to govern the transport sector. We suggest the National Government should take the initiative to announce a complimentary transport policy that attends to the separate but aligned issues of CO2 emissions and vehicle safety.”

Kerr suggests a transport-specific CO2 levy on fuel, in addition to the Emission Trading Scheme currently being considered by the Select Committee.

“Set the levy to increase at, say, ten cents per year. The CO2 levy collected is not to go into the general government coffers, but should be set aside for something like a ‘cash for clunkers’ scheme that gives vehicle owners the opportunity to upgrade to more fuel efficient (and safer) vehicle by offering a set amount as a rebate when the owner scraps an older, less fuel efficient (and less safe) vehicle that produced significantly more CO2 than a newer vehicle would.

One of the main barriers facing consumers wanting to upgrade their vehicle is affordability. A nationally-implemented scrappage incentive, funded by the CO2 emission levy, would go some way towards overcoming that hurdle,” says Kerr.

“The CO2 levy is not to be used for roading or to fund public transport. It would be specifically intended to help more New Zealanders into newer, safer, more fuel efficient vehicles, the benefits of which to the country as a whole are very significant.”

Data from New Zealand new car sales show that customers are choosing to drive smaller, more fuel efficient cars. In 2004, light and small cars comprised 35.2 per cent of new car sales. In the six months to June 2009, these two segments total 50.2 per cent of sales.

“Such a policy with a levy on CO2 emissions would reinforce this customer-driven shift to smaller, more fuel efficient cars, whether they are new or second-hand vehicles,” says Kerr. “The members of the Motor Industry Association believe that the National Government could use this proposal to flush out how committed the other political parties are to address the issues of global warming and the positive part the transportation sector can play”

ENDS/

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