Government Launches Fund to Drive Adoption of Low-Emission Heavy Vehicles
In a bold step towards a sustainable future, the government has unveiled the Low Emissions Heavy Vehicle Fund (LEHVF). This initiative, announced by Energy Minister Simeon Brown and Climate Change Minister Simon Watts, aims to foster innovation and reduce the financial burden of adopting clean technologies in the heavy vehicle sector.
“Boosting economic growth and productivity is a key part of the Government’s plan to rebuild the economy,” said Minister Brown. “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 has allocated $27.75 million to subsidize the purchase prices of low and zero-emission heavy vehicles. This funding is designed to address the primary barriers to adoption: high upfront costs and the uncertainty surrounding total cost of ownership.
To tackle these challenges, the LEHVF will cover up to 25% of the cost of new zero and low-emission heavy vehicles, as well as up to 25% of the cost to convert existing high-emission vehicles to low-emission technology.
“By offsetting up to a quarter of these vehicles’ purchase price, the Government is encouraging businesses to trial these new technologies,” Minister Watts explained. “This will not only reduce day-to-day operating costs but also ultimately save money for consumers at the checkout.”
This initiative marks a significant investment in the future of sustainable transport, aiming to make low-emission heavy vehicles a viable option for businesses across the country.
Source: NZ Govt Release