The Government today revealed changes to the pricing structure of its Clean Car programme, aimed at cutting emissions from New Zealand's vehicle fleet.

Broadly it's lowering the threshold for eligible vehicles, lifting fees on higher emitting vehicles, and changing the rebates for zero emissions imports.

Emissions from NZ's light vehicle fleet are the country's largest source of transport emissions, partly due to the number of fuel inefficient and emissions intensive vehicles.

Transport Minister Michael Wood said the scheme is exceeding projections, and "with over 100,000 rebates granted since the scheme came into effect in 2021, we currently have one of the fastest uptakes of EVs in the world".

Here is what is changing on July 1.

Rebates

The rebate on new zero emission vehicles will drop from $8625 to $7015, and for used imports, it will increase from $3450 to $3507.

Vehicles that emit one to 100g of CO2/km - generally plug-in hybrids and smaller hybrids - will get a rebate of $1725 for a vehicle at 100g and $57.50 for each gram below 100g, up to $4025.

Used imports in that range receive half the rebate of a new vehicle.

Vehicles that emit between 100g to 146g will no longer be eligible for rebate.

There is a new rebate for new and used low emission disability vehicles - $11,500 if it is a battery EV, and $5750 for plug-in hybrid EVs and hybrids.

New charges

Vehicles that emit 150g to 191g of CO2/km will now be charged a fee. Previously, vehicles had to emit 192g to be charged. For new vehicles the pricing will be $575 plus $57.50 for each gram above 150g.

For used vehicles it will be one half that amount.

Vehicles above 191g will be charged at the above rate - $575 plus $57.50 for each gram above 150g for new. The maximum charge will rise from $5175 to $6900.

Used vehicles will be charged one half of the amount as new ones - to a maximum of $3450.