The Government has launched the Low Emissions Heavy Vehicle Fund (LEHVF) to promote innovation and offset the cost of hundreds of heavy vehicles powered by clean technologies, Energy Minister Simeon Brown and Climate Change Minister Simon Watts say.
“Boosting economic growth and productivity is a key part of the Government’s plan to rebuild the economy. The LEHVF will offset upfront costs for businesses, enabling them to increase productivity with vehicles that are cheaper to operate.”
As part of Budget 2024, the Government confirmed $27.75 million towards offsetting the purchase prices of low and zero-emissions heavy vehicles.
“High upfront costs and the unknown total cost of ownership are the main barriers to the uptake of zero and low-emissions heavy vehicles. To address this barrier, the LEHVF will contribute up to 25 per cent of the cost of new zero and low-emissions heavy vehicles, and up to 25 per cent of the cost to convert existing higher emitting heavy vehicles to be powered by low-emissions technology.
“By offsetting up to a quarter of these vehicles’ purchase price, the Government is encouraging businesses to trial these new technologies to reduce day-to-day operating costs, ultimately saving money for consumers at the checkout.”
Climate Change Minister Simon Watts says that the fund will provide emissions benefits for years to come.
“Transport accounts for 18 per cent of New Zealand’s total emissions, which is why the Government wants to remove barriers and accelerate businesses to switch to lower-emission technologies.
“EECA’s modelling estimates up to 500 diesel-only vehicles would likely be replaced by mostly zero-emissions vehicles by 2028, as well as some low-emissions hybrid vehicles as a result of the Low Emissions Heavy Vehicle Fund.
“While this is a one-time initiative, there will be cumulative emissions benefits over the lifecycle of these low-emissions heavy vehicles. Initial estimates indicate that switching 500 diesel-only vehicles to zero and low-emissions alternatives will prevent 366,622 tonnes of carbon dioxide equivalent emissions,” Mr Watts says.
The LEHVF will be reviewed in six months’ time to ensure it is meeting its objectives and captures ongoing market advancements.
For more information about the fund, visit https://www.eeca.govt.nz/co-funding-and-support/products/low-emissions-heavy-vehicle-fund/