The Climate Council expressed optimism noting that Australians will soon enjoy cleaner cars and affordable petrol bills with the Albanese government’s New Vehicle Efficiency Standard (NVES) introduced to the parliament in March.
Citing a recent poll, the Climate Council said that 80 percent of Australians are constrained by high and rising petrol prices, while 70 percent called for government intervention against climate pollution from cars.
“Manufacturers have been dumping their dirtiest cars here for years, and that has got to stop,” Climate Council CEO Amanda McKenzie said. “Our cars produce more than 10 percent of Australia’s total climate pollution, and the average family pays over $5,000 a year for fuel.”
Ms. Mackenzie welcomes the long-awaited NVES legislation, saying Australians can finally say goodbye to expensive fuel bills and unhealthy air.
Under the NVES, car companies will be incentivised to develop new vehicles that will use less fuel. The government has set emission targets for light commercial vehicles to 210 grams of carbon dioxide per kilometre by 2025 and 110 grams by 2029.
With this, the government expects to curb 369 million tonnes of CO2 by 2050 and provide $5 billion in health benefits through reduced air pollution.
Fuel consumption is projected to be brought down by 20 percent of current levels, allowing consumers to save $1,000 a year in fuel costs and up to $17,000 over their vehicles’ lifespan.
Australia and Russia are the only advanced economies that have not implemented any fuel efficiency standards.
The Climate Council has long demanded for policy reform, particularly concerning increasing petrol prices and pollution.
Meanwhile, the Albanese government further refined the NVES through consultations with stakeholders over the past year. During the last consultation period, over 9,000 submissions were made.
As such, modifications were made better to suit the needs of Australians, such as recategorising four-wheel drives and adjustments on emissions standards.
The government will also grant Australian dealerships a $60 million grant under the Driving the Nation fund to boost EV charging.
Climate Council Head of Policy and Advocacy Jennifer Rayner lauds the government for responding to industry feedback, but says other transport policies should be implemented to achieve the national emission reduction target better.
“Enabling people in our big cities to use shared and active transport more often is the best way to cut climate pollution quickly this decade,” Ms. Rayner said. “This shift to shared and active transport should be at the centre of the federal government’s upcoming Transport and Infrastructure Net Zero Roadmap.”
Electric Vehicle Council Behyad Jafari also earlier commended the NVES, saying it is a big step forward for the Australian automotive industry.
“Thanks to these standards Australia will no longer be considered the global dumping ground for the world’s most inefficient vehicles,” Mr. Jafari said in a media release. “Importantly, these standards are robust and transparent, giving us a solid foundation from which to build in future years.”
Meanwhile, Ethinvest Philanthropy Director Blair Palese emphasised that clear policy direction is needed to accelerate the shift towards electric vehicles.
Unrealistic Timeframe: Automotive Industry
The upcoming standard has also been met with opposition from the Australian Automotive Dealer Association.AADA CEO James Voortman claimed that the standard holds “an incredibly ambitious target” that is not achievable, especially for utes and large SUVs.
“Other countries have reduced new vehicle emissions over a much longer time frame, with credits built into their standards,” Mr. Voortman said. “We are concerned that this policy goes too far too fast and that consumers will be the big losers, as will the local automotive businesses.”
The NVES will take effect on Jan. 1 next year and is expected to catch up to other markets, like the U.S., on emissions reduction by 2028.
Last March, Tesla announced its withdrawal from the Federal Chamber of Automotive Industries, citing the lobby group’s “demonstrably false” claims that the NVES will lead to higher vehicle prices. Polestar followed suit, citing the same reasons.
