Is New Zealand transport’s transition to EVs a feasible option?

June 16, 2021 11:00 AM AEST | By Jasmine Anand
 Is New Zealand transport’s transition to EVs a feasible option?
Image source: WStudio,Shutterstock

Summary

  • With an increase in carbon emissions across the globe, electric vehicles and hybrid cars are the future of the world.
  • NZ’s Climate Commission outlines a carbon-cutting roadmap with more EV chargers and feebates for electric and hybrid cars.
  • Though low on emissions, these EVs come attached with huge price tags and might pressurise the nation's electricity grid system in the long run.

Countries across the world have increasingly become addicted to toxic fossil fuels for their energy and industry requirements. As a result, greenhouse gas (GHG) emissions are on the rise.

As per reports, in 2019, the world witnessed carbon dioxide emissions to be as high as 36 billion metric tonnes, leading to a dramatic increase in global temperatures and climate change.

Aoteroa’s increased dependence on coal

According to MBIE's Quarterly Energy Statistics, New Zealand burned enormous quantities of coal, amounting to 10.35 petajoules in just first three months of this year, thereby raising concerns on the sustainability of the Kiwi land.

Source: Copyright © 2021 Kalkine Media

EVs: A blessing for the low-emissions future

Hybrid and electric vehicles (EVs) are a boon to the environmentally conscious world. They not only boast low-emissions capacity but also improve fuel economy and save costs.

Read: Will EV Market Help New Zealand Reach Zero Carbon Level?

A roadmap for NZ's zero-emissions future

Recently, NZ’s Climate Change Commission had released its final report wherein it laid the roadmap for the country's carbon-free future.

To reach net-zero emissions by 2050, the Commission has urged that all the cars being imported by 2035 must be EVs.

Must Read: How does New Zealand Government Plan to Decrease emissions by 2050?

Apart from being committed to policies like Clean Car Import Standard, in order to stimulate the purchase of EVs, the Aotearoa Government is taking rapid actions and has announced electric vehicle chargers to be available almost every 75km on most of the state highways.

Moreover, it has declared that from 1 July onwards, feebates for electric and plug-in hybrid vehicles would be given; NZ$3,450 for used vehicles and a maximum of NZ$8,625 for new ones.

Source: Copyright © 2021 Kalkine Media

Further, people purchasing gas vehicles will be required to pay more fees. For example, Toyota Hilux would now cost an additional NZ$2,900, with fees going as high as NZ$5,175.

A Quick Read: Toyota's next-gen Highlander all set to conquer Kiwi roads

An electric car could save up to 60% of emissions in its lifecycle, expressed the Climate Change Commission.

Don’t Miss: Budget 2021 Aims At Greenhouse Gas Emissions; A glance At 5 NZX Energy Stocks- ZEL, MEL, MCY, TPW, TLT

New Zealand’s stance on EVs

Climate crusaders are increasingly propagating the use of these electric and hybrid cars and are calling for a steady transition from traditional fuel-powered vehicles to these new-age cars.

The most important question here is that ‘Are these EVs poised to fit into the lives of Kiwis?’

Let us now try to answer the question by evaluating the advantages and disadvantages of these low-emission vehicles.

Some Kiwi communities are wary of the use of EVs

However, Simon Mackenzie, Vector’s Chief executive, opined that the increased use of EVs would pressurise the country’s electric grid system, as apart from using electricity for daily needs, people would require to plug in their cars too, which would put additional burden to the nation's electricity network.

Moreover, the farming communities and the builders expressed that NZ Government’s clean car package was an unkind tax thrusted upon them, for no substitutes available for their work vehicles.

They are keen to switch to cleaner and greener electric vehicles, but due to their non-availability and huge costs, the framers are of the opinion that these EVs are just not suitable for the rural Aotearoa, as they are already burdened with other costs as well as the catastrophe inflicted by nature during recent torrential floods.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.