Low Emission Transport Fund Concludes After Catalyzing $265 Million in Private Investment

After nearly a decade of accelerating the shift to low- and zero-emissions transport across New Zealand, the Government’s Low Emission Transport Fund (LETF) has announced its final funding rounds.

Administered by the Energy Efficiency and Conservation Authority (EECA), the LETF provided over $100 million in public co-funding, supporting 359 projects nationwide and unlocking more than $265 million in private investment.

The final three rounds — 14, 15, and 16 — mark the conclusion of a programme that began in 2016 as the Low Emission Vehicle Contestable Fund (LEVCF) and expanded in 2021 under its current name.

“The LETF has played a vital role in fast-tracking New Zealand’s adoption of clean transport technologies,” says Richard Briggs, EECA’s Group Manager of Delivery and Partnerships.
“It proved the business case for low- and zero-emissions vehicles, machinery, and vessels — demonstrating what’s viable and inspiring others in the industry to follow suit.”

According to Briggs, the fund helped bring forward projects that may not have otherwise happened — or would have taken much longer — while also reducing operating costs for organisations by improving energy efficiency and productivity.

Transformational Projects

LETF funding supported several groundbreaking initiatives, including:

• The world’s first electric milk tanker – Fonterra

• New Zealand’s first hydrogen-powered truck – NZ Post

• An electric hydrofoil ferry – Vessev and Fullers360

• Electric double-decker buses – Tranzit and Metlink

• Early adoption of electric supermarket delivery vans

• Over half of NZ’s 1300+ public EV chargers, including the first high-speed DC chargers by ChargeNet

With the rapid advancement of the market, the need for early-stage funding has diminished, and the LETF has now reached what EECA describes as a “natural end.”

What’s Next?

While the LETF has concluded, EECA’s work to support emissions reduction in transport continues. The Low Emission Heavy Vehicle Fund remains active, offering grants of up to 25% for the cost of new zero-emissions trucks or for converting existing internal combustion vehicles.