Govt Launches Low Emissions Heavy Vehicle Fund to Drive Clean Technology Adoption

Minister Brown highlighted that the fund will lower upfront costs for businesses, allowing them to improve productivity and reduce long-term operating expenses.

The New Zealand Government has introduced the Low Emissions Heavy Vehicle Fund (LEHVF) to support businesses in adopting clean technologies and reduce the cost of purchasing low- and zero-emissions heavy vehicles. The initiative, announced by Energy Minister Simeon Brown and Climate Change Minister Simon Watts, aims to accelerate economic growth while reducing the environmental impact of the transport sector.

With $27.75 million allocated under Budget 2024, the LEHVF will help offset up to 25% of the cost of new low-emissions heavy vehicles and the conversion of existing higher-emitting vehicles to cleaner alternatives. Minister Brown highlighted that the fund will lower upfront costs for businesses, allowing them to improve productivity and reduce long-term operating expenses.

"The LEHVF is a key part of the Government’s strategy to boost economic growth by making low-emissions technology more accessible to businesses. By reducing day-to-day operating costs, this will ultimately save money for consumers," Brown said.

Climate Change Minister Simon Watts emphasized the long-term environmental benefits of the initiative, noting that the transport sector accounts for 18% of New Zealand’s total emissions. EECA's (Energy Efficiency and Conservation Authority) modeling suggests that the fund could replace up to 500 diesel-only vehicles with zero- or low-emissions alternatives by 2028, preventing approximately 366,622 tonnes of carbon dioxide emissions over the vehicles' lifecycles.

"This fund is a one-time initiative, but its cumulative emissions benefits will extend well beyond the immediate future," Watts added.

The LEHVF will undergo a review in six months to assess its effectiveness and adapt to ongoing advancements in clean technology.