Australia's fuel efficiency standards took a big step forward this week with the long-overdue development of a national policy and agenda around electric vehicles.
The drive to reduce the emissions generated by road transport operations, both commercial and recreational, took another step forward today.
In a bid to improve the quality of the vehicles on Australia’s roads and encourage the transition to more efficient styles of transport the Federal Government is seeking industry and community input into the setting of new fuel efficiency standards for our cars.
Fuel Efficiency Standards form a key element of the National Electric Vehicle Strategy, with the government arguing that Australia is missing out on a greater choice of car models by failing to set standards that encourage manufacturers to send their products to our market.
At the moment, Australia and Russia are among the only developed countries that don’t have fuel efficiency standards.
The government says that on average, new cars in Australia use 40 per cent more fuel than new cars in the European Union, 20 per cent more than the United States, and 15 per cent more than New Zealand.
It says previous analysis has shown that the introduction of a fuel efficiency standard could save motorists $519 per year in fuel costs and that with passenger cars making up almost 10 per cent of Australia’s CO2 emissions, improvements in this part of the transport fleet would help the country to meet emissions reduction targets.
The strategy is expected to help cut emissions by at least 3 million tonnes of carbon by 2030, and over 10 million tonnes to 2035.
It also states that fuel efficiency standards will only apply to new cars, and not retrospectively, so consumers will still be able to choose they vehicle they want to drive.
Minister for Climate Change and Energy Chris Bowen said Australian governments, car makers, motoring clubs, climate groups, businesses and unions were all on board with getting cleaner and cheaper cars to Australia.
“This strategy provides the coordination and leadership to drive down costs and improve infrastructure so that we get more affordable and accessible electric vehicles on the market,” Minister Bowen says.
“The government has already cut taxes on EVs through the Electric Car Discount, saving up to $11,000 a year on a $50,000 electric vehicle. Thanks to the Albanese Government’s leadership, two and half times more EVs are being sold this year than they were at this time last year.
“Fuel-efficient and electric vehicles are cleaner and cheaper to run – today’s announcement is a win-win for motorists.”
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Minister for Infrastructure, Transport, Regional Development and Local Government, Catherine King said the government would introduce fuel efficiency standards that work for Australia’s market.
“This strategy offers an historic opportunity to develop fuel efficiency standards that learn from international best practice, while recognising the unique needs of Australians,” Minister King said.
“It will send a strong message to the global car industry that when it comes to transport technology, Australia will no longer settle for less.
“More than 85 per cent of all cars sold in the world are subject to fuel efficiency standards. It’s time Australians were offered the same choice.”
The release of the strategy has been welcomed by green groups.
Solar Citizens clean transport campaigner Ajaya Haikerwal says the introduction of fuel efficiency standards to the Australian market would improve the quality of the vehicles imported here and help motorists to save money too.
“There’s clearly the willingness from both the community and the industry to fix fuel efficiency standards and get it right as soon as possible, to bring more clean car choices for all Australians,” Haikerwal says.
Climate Council head of advocacy Dr Jennifer Rayner says with Australians spending almost $100 a week on average for fuel bills, any relief would be welcomed.
“Because Australia doesn’t have fuel efficiency standards, we have become a dumping ground for expensive, polluting, petrol-guzzling vehicles,” Dr Rayner says.
“This is forcing too many Australians to keep forking out for cars that hurt household budgets, our helath, and our environment.”
Greenpeace Australia Pacific senior campaigner Lindsay Soutar welcomed the release of the EV strategy.
“Implementing strong, legislated, mandatory standards is the next vital step to kick start Australia’s electric vehicle revolution and make electric cars accessible and affordable to everyone,” Soutar says.
“Every day they delay costs motorists more money and puts more toxic carbon pollution into our atmosphere. The government needs to get the job done, get it done fast, and get it done well”.
The news has also been welcomed by the Electric Vehicle Council and Farmers for Climate Action.
The move to introduce fuel efficiency standards for cars follows on from the announcement that Euro VI standards will be phased in over 12 months for trucks and buses in Australia from November 1, 2022.
The Euro VI standards for heavy vehicles include improved safety and fuel-saving technologies.
Anyone who wants to have their say on the fuel efficiency standards for can do so at www.cleanercars.gov.au. The government expects to release its proposed Fuel Efficiency Standard by the end of 2023.
The National Electric Vehicle Strategy is available at www.dcceew.gov.au/energy/transport.