New Zealand's Commitment to Low-Emission Transport Innovation
Key Ideas
- New Zealand businesses have invested $265 million in low- and zero-emissions transport projects over the past decade.
- The Low Emission Transport Fund (LETF) has played a crucial role in accelerating the country's shift towards cleaner transport technologies.
- Notable projects supported include the world’s first electric milk tanker, hydrogen-powered truck, electric double-decker buses, and electric supermarket delivery vans.
- The LETF reached its 'natural end' due to rapid market progress, but support for emissions reduction in heavy transport continues through the Low Emission Heavy Vehicle Fund.
In New Zealand, businesses have shown a strong commitment to advancing low- and zero-emissions transport projects, investing a total of $265 million over the past decade. Administered by the Energy Efficiency and Conservation Authority (EECA), the Low Emission Transport Fund (LETF) has been instrumental in driving the transition to cleaner transport technologies. The LETF, which evolved from the Low Emission Vehicle Contestable Fund (LEVCF), has approved numerous projects in its final rounds, showcasing the benefits of adopting low or zero-emissions vehicles, machines, and vessels.
Richard Briggs, EECA’s Group Manager, highlighted the significant impact of the LETF in unlocking private capital for projects that might not have otherwise materialized swiftly. Notable projects supported include innovative initiatives such as the world’s first electric milk tanker, a hydrogen-powered truck, electric double-decker buses, and early adoption of electric supermarket delivery vans.
As the market progresses rapidly, the LETF has concluded its operations, but EECA continues to support emissions reduction in heavy transport through the Low Emission Heavy Vehicle Fund. This fund provides grants covering up to 25% of the cost of new zero-emissions trucks or conversion of internal combustion engine vehicles.
The LETF's success is evident in its statistics, having facilitated 17 funding rounds, approved 359 projects, secured $100.5 million in government co-investment, and unlocked $265.5 million in private capital. The recent approved projects in the final rounds include innovations such as electric oyster barges, aquaculture vessels, electric excavators, electric foiling ferries, autonomous electric terminal tractors, and hydrogen refuelling trucks.
With a focus on promoting innovation, sustainability, and energy efficiency, New Zealand's initiatives in low-emission transport underscore a positive trend towards a greener and cleaner future.