The New Zealand government has "refreshed" the Low Emissions Vehicle Fund (LEVF) through expanded vehicle categories, broadened eligibility for conversions and increased grant levels, it announced today.
The refreshed LEVF aims to better support the country's businesses in transitioning to more resilient and efficient supply chains, energy minister Simon Watts said in a press statement on 28 May.
The medium and heavy vehicle categories now start at 12t gross vehicle mass, allowing for a broader range of vehicles to qualify for higher support levels. Vehicles registered in New Zealand within the past five years are now eligible for grants covering up to 25pc of the cost to convert existing internal combustion engine vehicles to low- or zero-emissions technologies. Grant levels for zero-emission conversions, new hybrid vehicles, and hybrid conversions have also been increased to further encourage uptake.
The government is also rewarding businesses that make new investments by reducing their tax bills in the year they purchase new assets, Watts said. This will support investment in projects and the uptake of low emissions technology, including hydrogen, he added.
Advanced biofuels will have a role in the long term, while conventional biofuels could be an interim solution because electrification opportunities for some transport sectors is limited, New Zealand's Energy Efficiency and Conservation Authority said.
Liquid fuels dominate New Zealand's energy emissions and account for over half of all energy sector emissions in the country.
