New Zealand Green Investment Finance (NZGIF) and NZ Post have signed a $20 million financing agreement to accelerate the transition of the NZ Post fleet and its delivery contractors’ vehicles, to electric vans (E-Vans) or low emissions vehicles (LEVs).
NZGIF is providing financing of $10 million and NZ Post $10 million through NZGIF majority owned subsidiary Sustainable Fleet Finance (SFF) to provide attractive and competitive financing to improve access to E-Vans/LEVs.
This aligns with NZ Post’s continued work in climate action and leadership, through the transition of their fleet to LEVs. Its target is to have 100% of its own fleet and 25% of its contractor fleet electric by 2025 and the balance of the contractor fleet electric by 2030.
Contractors will also be able to access grant funding from NZ Post’s EV Incentive Scheme.
NZGIF Chief Executive Officer Craig Weise says that NZGIF is pleased to be supporting a recognisable corporate brand with an innovative financing solution to help their continued climate leadership.
"This is a great collaboration between like-minded organisations. NZ Post have committed to being carbon neutral from 2030 and the electrification of their fleet and the contractor fleet is pivotal to this.
Transport makes up about a fifth of the country’s carbon footprint, and most of that comes from the light vehicle fleet - cars, vans and utes. This deal will help our decarbonisation goals both by helping NZ Post achieve their goals but also by giving the second-hand commercial EV market the kickstart it needs," Weise said.
This investment will initially be used to finance an order for 60 E-Vans for the NZ Post fleet.
These vans will arrive in New Zealand in the second half of 2022 and mark the beginning of a four-year tiered lease plan, where a vehicle leased by NZ Post can then be offered, by SFF, to contractors as second and third owners. The idea is, as a vehicle moves down the model it becomes more affordable for each subsequent owner.
Weise said ultimately switching to E-Vans for courier deliveries made sense because there are models available that are well suited to the task.
"Vehicles that will be available will meet pre-determined criteria from NZ Post to make sure they are fit for purpose. So, through this initiative we are bringing in a proven technology that hasn’t made it to New Zealand yet," Weise said.
NZ Post Chief Executive Officer David Walsh says partnering with New Zealand Green Investment Finance aligns perfectly with its goal to be carbon neutral from 2030.
"We know that while an electric vehicle costs a lot less to run, the initial purchasing cost can be a barrier. Because of this, NZ Post is making up to half a million dollars available each year to help our delivery contractors invest in these eco-friendly vans."
NZ Post is here for the long run, Walsh said.
"Sustainability is a big deal to all of us at NZ Post. We’re committed to our people and New Zealand communities and our sustainability goals are just another way of showing this."
What model of E-Vans will be used?
The initial order of 60 vehicles for NZ Post will be for the Mercedes eVito Panel Van. Discussions with other OEMs are also ongoing. All models that will be financed through this scheme will have met NZ Post operational requirements.
What EVs are currently in use by NZ Post?
NZ Post’s owned delivery fleet already includes over 400 electric vehicles - The Paxsters. There are also over 35 electric passenger cars. Over the last 24 months NZ Post has also been trialling Electric vans and understanding their use under operational conditions as well as implementation needs. This has included LDVs, Nissan and Renaults. We have used the information learnt during these trials to create short info videos for our contractors and these can be found here www.nzpost.co.nz/evan
How many vehicles are in the fleet?
The combined NZ Post and contractor fleet covers approximately 2,131 vehicles with 80% being light vans and 81% having diesel engines. There are approximately 1,916 vehicles in the contractor fleet.
What will the cost be?
Whilst the financing for the new project has been agreed, the leasing solutions to be offered to NZ Post contractors will be confirmed following a period of consultation with contractors to understand their needs and preferences in more detail.
Alongside a competitive finance offer, contractors will be able to apply for a support via NZ Post’s Electric Vehicle Incentive Programme.
What will the emissions reductions be?
The proposed NZ Post fleet transition plan is forecast to provide significant emissions benefits to New Zealand. Each diesel van we replace with an EV will abate an average of 7.8 tonnes of C02-e per annum
Comparing EVs to status quo ICE vehicles, each conversion will have a reduction in emissions by factors of around 90%. As New Zealand progresses towards 100% renewable generation, the reduction factor will increase further.
More about New Zealand Green Investment Finance
New Zealand Green Investment Finance is a green investment bank established by the New Zealand Government to accelerate investment that supports New Zealand’s low carbon future.
With a broad and flexible mandate, our investments can take many forms, from debt to equity, with the ability to take risk positions that help to attract co-investors.
Our investments are made on a commercial basis and we do not offer grants, subsidies or concessionary terms.
As a limited liability company independent of government, we make our own investment decisions, informed by a Board and team with expertise in investment, financial markets and sustainability.
NZGIF is not a registered bank.
More about Carbn Group
Carbn Group is a parent company of two distinct subsidiaries formed to support the uptake of low emissions vehicles in corporate and government-owned fleets.
The two companies - Carbn Asset Management (CAM) and Sustainable Fleet Finance (SFF) - operate independently to reduce New Zealand’s light vehicle fleet emissions, the country’s fastest growing emissions sector. CAM provides fleet optimisation and transition planning for fleet owners, while SFF provides financing for electric vehicles for fleets.
Carbn is significantly scaling up its fleet financing arm to finance further private corporate and government fleet transitions to EVs.
Carbn Group’s activities give a wide range of New Zealanders the opportunity to experience driving electric vehicles through work, thus helping to mainstream EV use. It will also help build the second-hand market for EVs in New Zealand.