Consultation on Australia fuel efficiency standards for light vehicles to minimise emissions

Currently there is a lack of incentives for global vehicle manufacturers to send their cleanest and most efficient hybrid and electric vehicle (EV) technology to Australia. Australia is one of the last developed nations to develop a fuel efficiency standard putting us at the back-of-the-queue for the cleanest models and resulting in our fleet emitting more carbon than equivalent fleets in other geographies. For example, it is estimated that on average Australian passenger vehicles emit 40% more carbon compared to passenger vehicles in the European Union. The transport sector is a large contributor to greenhouse gases in Australia, and is estimated to be the largest contributing sector by 2030.

The proposed fuel efficiency standards would be set as an average CO2 emission target for each vehicle supplier and would only apply to new vehicle sales. The targets would be managed applying an incentive and penalty system, where exceeding the efficiency target would provide the supplier with credits and not meeting the target would require the supplier to buy credits or pay a fine. Suppliers would not be restricted in the type of vehicles they can sell but would be motivated to provide and sell cleaner models to offset higher emitting vehicle sales.

The introduction of a fuel efficiency standard would increase the number of efficient vehicles (including EV) available in Australia, while also reducing fuel costs for drivers and reducing greenhouse gas and air emissions. Personally, I am looking forward to electric utes and 4WDs being available in Australia.

The Australian Government Department of Infrastructure, Transport, Regional Development, Communications and the Arts has released a consultation paper on this issue. The consultation process is open for submissions until 31 May 2023. Submit a submission or comment on the fuel efficiency standard here: https://www.infrastructure.gov.au/have-your-say/fuel-efficiency-standard-cleaner-and-cheaper-run-cars-australia

Previous
Previous

Groundbreaking research discovery reshapes understanding of how atmosphere clears air pollutants and greenhouse gases

Next
Next

International Sustainability Standards Board (ISSB) set to release first two standards in June 2023 for general sustainability-related and climate-related disclosures