MIA Welcomes Productivity Commission’s Draft Report on a Low-Emissions Economy
David Crawford, Chief Executive Officer of the MIA says ‘the Productivity Commission’s draft report on a low emissions
economy, released today, contains important analysis and recommendations to stimulate an essential debate on measures to
accelerate a reduction on New Zealand’s greenhouse gas emissions. The new vehicle sector welcomes the opportunity to
participate in a discussion on measures that would be effective in achieving an acceleration of reduction in greenhouse
gases.’
Greenhouse gas emissions from Transport are around 18.4% of New Zealand’s total emissions the third largest sector
behind energy (22.5%) and agriculture at 47.9% (2015 figures as used by the Productivity Commission).
Mr Crawford says ‘to avoid distortions in long term resource allocation it is important a low emissions economy includes
all gases and all sectors. It is time to have a discussion on the incorporation of agriculture into our regulatory
approach to reduce greenhouse emissions as it will remove a current distortionary effect which places an unfair burden
on the other sectors’.
When it comes to transport, New Zealand is a technology taker. How we leverage the importation of low carbon
technological innovations is important, especially given the high volume of old imported vehicles that are on average
one to two generations behind technologies found in new vehicles.
There is scope to make better use of economic pricing signals to influence vehicle purchase decisions, especially those
that make it easy for consumers to identify relative fuel efficiency of vehicles. Making it easier and more transparent
for consumers to understand a vehicle’s greenhouse gas performance and associated cost is more likely to be successful
in changing consumers purchasing patterns.
‘Discussion on transport incentives and disincentives within the draft report are welcomed as it stimulates a healthy
debate on what policy measures are best for New Zealand’, says Mr Crawford.
Ends