The Australian Federal Government has introduced vehicle efficiency standards targeting emissions from new vehicles sold within the country.
In line with other countries
Set to be introduced in the first half of 2024, the initiative mandates manufacturers to adhere to specific emissions targets calculated on average emissions per kilometre across their fleet of new cars.
The legislation is designed to align Australia with global standards, bringing us into line with the United States, China, New Zealand and the European Union.
Australia has historically been seen as a dumping ground for less efficient vehicles and the change aims to shift the country’s trajectory towards more sustainable automotive choices.
Month-long consultation
The efficiency standard will cover new passenger and light commercial vehicles, with the government embarking on a month-long consultation with consumers and industry stakeholders to refine the proposed model.
Climate Change and Energy Minister Chris Bowen underscored the economic and environmental benefits of the new standard, saying it would result in substantial fuel savings for Australian consumers.
With the standard set to take effect from January 1, 2025, projections indicate potential savings of up to $1,000 per vehicle by 2028.
Bowen assured consumers that the new regulations would not restrict consumer choice, with a broad selection of vehicles remaining available and fines implemented for manufacturers failing to meet the targets.
Transport Minister Catherine King was quick to address potential misconceptions surrounding the new standard, clarifying that it would not impact the availability of popular models such as utes and SUVs, nor would it affect the price of new vehicles.
Reactions predictably mixed
The announcement has received a predictably mixed response. Independent Senator David Pocock called for a more ambitious timeline and suggested an earlier start date to amplify the benefits.
The Electric Vehicle Council and Climate Council applauded the policy, saying it will have an important role in reducing Australia's reliance on inefficient vehicles while simultaneously aiding those facing cost of living pressures.
But the policy has not, of course, been universally welcomed. The Federal Chamber of Automotive Industries (FCAI) voiced concerns regarding the feasibility of the ambitious targets, claiming it would be difficult to meet them without impacting vehicle availability or cost.
The Opposition has also piped up, saying it is concerned that the standards could make certain vehicles unaffordable.
As the nation moves into line with global standards there will no doubt be a period of adjustment. The forthcoming consultation period will be crucial in addressing industry concerns, warding off scare campaigns and ensuring the initiative's success in reducing emissions and giving Australians access to cleaner, more efficient vehicles.