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NZ Govt announces new fund for low-emission transport

Words: Matthew Hansen

by Matthew Hansen
October 7, 2021
Ford Escape plug-in hybrid charging

The New Zealand Government has confirmed a new fund designed to support local emissions-reducing projects to the tune of $12.5million per year. 

The new fund, known as the Low Emission Transport Fund (LETF), effectively replaces the previous Low Emission Vehicle Contestable Fund (LEVCF). 

While the naming conventions between the old fund and the new fund are almost identical, the new fund aims to be more broad. While $12.5million will be on offer in year one, by 2023-’24 the fund aims to offer $25million to its successful applicants.

The first round of the fund will focus on low-emissions vehicles and transport technology, with the second round focusing on public charging infrastructure.

“The LETF has a broadened scope from its previous existence as the Low Emission Vehicle Contestable Fund, with wider eligibility for projects on and off-road, with increased funding to help accelerate the decarbonisation of the transport sector, through innovative transport technology and infrastructure,” says minister of energy and resources, Dr. Megan Woods.

Benefactors from the fund’s previous iteration range from smaller-scale businesses building on-site vehicle chargers to Hyundai New Zealand and its hydrogen Xcient commercial vehicle demonstration programme. 

According to the Energy Efficiency & Congestion Authority (EECA), while the fund is now broader than before, things like waste minimisation, energy production or electricity generation, and reducing agricultural emissions are outside of its scope. 

“The fund is open to all New Zealand-based and New Zealand-registered legal entities except Public Service Departments, Non-Public Service Departments (such as the New Zealand Defence Force), and Statutory Crown Entities such as District Health Boards,” EECA adds.

“Funding rounds will be based on the investment activities of the fund. Each funding round will run independently and have a specific focus and related criteria. Information on the scope of each funding round and how to apply will be made available here when the round opens.”

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