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Key inclusions in ERP2

    December 13 – The Ministry for the Environment has this week released New Zealand’s second emissions reduction plan which comes into effect on 1 January 2026. The second emissions reduction plan (ERP2) is the Government’s plan to meet the second emissions budget (EB2) for the period 2026–30.

    ITS New Zealand submitted on the draft Emissions Reduction Plan (ERP2) on behalf of its members in August this year and it’s pleasing to see a new section focused on technology and innovation, and more information on how the Government will monitor progress to ensure the country stays on track have been added to ERP2 as a result of consultation feedback. 

    Key inclusions with regard to transport, technology, and innovation are listed below:

    • Removing market barriers to encourage new technology to be trialed in New Zealand
    • The Low Emissions Heavy Vehicle Fund (LEHVF) can encourage early adoption of new technology
    • Transitioning the entire light vehicle fleet to RUCs, and away from fuel tax, by 2027
    • The introduction of legislation to set up time-of-use schemes in New Zealand
    • International cooperation to prepare us to use new technologies as they become available specifically for aviation and shipping
    • Major Public Transport projects including Auckland City Rail Link, Eastern Busway, Northwest Rapid Transit, Auckland airport to Botany busway, and rail upgrades in the lower North Island
    • Making better use of existing public transport infrastructure, introducing new technologies to optimise networks and services, and integrating transport investment with housing and land-use planning in the main cities
    • Encouraging innovative approaches for the rollout of buses and related infrastructure

    Armin Guttke, Chair and President of ITSNZ says “It is encouraging to see the Government take a technology-led approach to maximise emissions reduction for our country. ITS New Zealand supports the least-cost, net-based, and market-led direction of this plan. In addition, it is reassuring to see complementary Government actions and policies relating to co-investment and the removal of regulatory barriers that encourage investment in enabling technology and innovation. The inclusion of enabling technology and innovation lays the groundwork and path forward for a more sustainable and smarter transport system that supports productivity and economic growth.”

    New Zealand’s second emissions reduction plan 2026–30 | Ministry for the Environment