Extract from ABC News
The federal government will introduce laws that will set fuel efficiency standards on new cars being sold in Australia.
Under new vehicle efficiency standards, car companies will be required to supply more fuel efficient vehicles to consumers by targets set on the average emissions per kilometre for new cars sold.
Australia has been dubbed a dumping ground for inefficient vehicles because it hasn't had fuel standards like China, the United States, New Zealand and the European Union.
The standard only applies to new passenger vehicles and light commercial vehicles.
The Albanese government said it would consult on its preferred model for a month, but was looking to introduce the legislation in the first half of 2024.
The new standard was expected to come into effect on January 1, 2025.
Climate Change Minister Chris Bowen said consumers were currently spending more on petrol than they should and the standard would lead to savings.
"It means Australians are paying more at the bowser than they should compared to people in other countries because they’re using more petrol and diesel," he told a press conference in Melbourne on Sunday.
Mr Bowen said the standard was a "win-win" for consumers as it offered more choice of vehicles to buy. Modelling predicted that by 2028, drivers would save up to $1000 per vehicle on fuel.
"It's a win for cost of living and a win for consumers," he said.
Mr Bowen said the standard wouldn't dictate which cars Australians could buy and he expected car manufacturers to comply with the legislation, which would include fines for those unable to meet the standard.
Transport Minister Catherine King said she anticipated consumers would hear “all sorts of nonsense” about the standard from the federal opposition and "a range of stakeholders".
“We’re going to hear that utes are banned – that is not true. We’re going to hear that somehow second-hand vehicles (are) affected – that is not true. It is about new vehicles,” Ms King said.
“We’re going to hear about price (of a new vehicle) – none of the evidence, there is just no evidence to say that it will affect price at all of SUVs, or utes or any other vehicle."
Vehicle efficiency standard 'should start this year'
Independent Senator David Pocock welcomed the announcement, but said it needs to be more ambitious.
"I want to see these new standards implemented as soon as possible and call on the government to bring forward the slated commencement date of 1 January 2025 to 1 July 2024, with a six month test period during which penalties do not apply," he said in a statement.
“Anything less ambitious than what is being proposed will increase the cost of transport and do further damage to our climate."
The Electric Vehicle Council of Australia has welcomed the move and said it would stop the country being a dumping ground for inefficient cars.
"Australia has always been at the back of the queue when it comes to the best and cheapest electric vehicles, because car makers have been incentivised to offer them elsewhere first," the council said in a statement.
"That should end now with this policy, and Australian car buyers should notice the change very quickly."
Climate Council chief executive officer Amanda McKenzie said the move would assist Australians struggling with cost of living pressures.
"Many Australians are doing it tough right now, with petrol one of the expenses causing the most financial stress for households," Ms McKenzie said in statement.
"At the same time, pollution from inefficient petrol-guzzling cars is fuelling harmful climate change.
"By giving Australians better choice of cleaner, cheaper-to-run cars, a strong fuel efficiency standard will cut household costs and clean up our air."
Targets are 'ambitious and will be a challenge'
Last year 1,216,780 new vehicles were sold in Australia, according to the Federal Chamber of Automotive Industries.
FCAI chief executive officer Tony Weber said it would take time to study the impact on consumers and the industry, but the targets were ambitious.
“On the surface, the targets seeking a 60 per cent improvement in emissions are very ambitious, and it will be a challenge to see if they are achievable taking into account the total cost of ownership," Mr Weber said.
"We are concerned, and we haven't done the analysis, that this gets in front of the technology curve.
"And that means that vehicles would be more expensive or we won't be able to provide some vehicles to the market in certain segments."
"My greatest concern without doing the analysis is around utes, especially 4x4 utes and large SUVS.
“The preferred option suggests that Australia considers adopting the type of targets that are currently in place in the United States. The targets in that country are supported by significant financial incentives yet the discussion paper makes no reference to any additional incentives to support the uptake of low emission vehicles."
The Opposition released a statement saying the new standards could soon make some Australian vehicles unaffordable, if they didn't strike the correct balance.
"Fears from industry representatives today, that the Government's heavy-handed approach will drive utes off Australian roads is of deep concern to the Coalition," the statement said.
"There is a risk Labor's scheme will be just another subsidy for the rich and large corporations with fleets, while the benefits remain out of reach of low and middle-income families and the nation's tradies."
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