Legislation for the Australian Government’s New Vehicle Efficiency Standard (NVES) will be introduced today, in bid to improve the price of operating a car and with less pollution from the overall fleet.
The change will see more Australian motorists being able to choose from a wider range of more efficient, modern vehicles, and be able to save on petrol, the government claims.
This will reduce emissions from new passenger vehicles by more than 60 per cent by 2030, and roughly halve the emissions of new light commercial vehicles over the same period.
The government has also argued legislation will save Australians money, up to $1000 per year, at the bowser as they can buy cars that use less fuel.
The New Vehicle Efficiency Standard targets passenger vehicles, catching up to comparable economies by the end of the decade.
Multiple companies and organisations have welcomed the news, including The Federal Chamber of Automotive Industries (FCAI), Toyota and Hyundai.
The FCAI has welcomed the changes to the New Vehicle Efficiency Standards and recognises it as a step in the right direction. However, the FCAI will continue to have concerns about the impending challenges facing industry and motorists.
The Motor Trades Association of Australia is another body that has been consistently advocating for reasonable adjustments to the scheme – such as moving light commercial vehicle targets closer to the US standard.
The MTAA responded to the launch by saying “The concessions demonstrate the Australian Government’s awareness of the challenges being experienced internationally in the electrification of transport, with the US Government amending its EV targets and rate of CO2 reduction just last week.”
“In totality, the changes should benefit the Australian consumer – reducing the very real risk of price rises and reduced access to the vehicles they want and need – while placing the country on a CO2 trajectory similar to other comparable nations,” MTAA CEO, Matt Hobbs says.
“MTAA commends the Australian Government for their approach and appreciates the seat at the table throughout these critical discussions.
“Working side-by-side with the Government has provided MTAA members with a leading voice into this policy – the result being a program that better reflects the country’s love of utes and SUVs while preparing for an EV future.
“The next few years, however, are critical for the automotive industry, and we all intend to do our part in decarbonising the country’s transport sector. But consumers must come first, and we believe the adjustments to the policy strikes this delicate balance.
“The proposed standard is still ambitious and challenging for the many car brands in the Australian market. It is important to note that the changes to the standard that the MTAA secured has ensured it is workable.”
“In the last six weeks the Australian Government has acknowledged the retail automotive industry’s concerns, looked at the additional evidence and considered the weakening of the US Standard to come up with a revised, and what we consider, sensible plan.”
Hyundai Australia chief operating officer, John Kett, outlined the benefit of the Standard for the automotive industry.
“The NVES framework seems to strike the right balance between ambition and practicality,” Kett says.
“With this Standard in place, Hyundai dealers will have great vehicles to sell, customers will have great vehicles to drive, and the automotive industry will be playing its part to reduce emissions in line with Australia’s commitment to decarbonise.”
The ambition of the Australian Government’s NVES policy aligns with Hyundai’s global vision for the rapid development of sustainable transport technologies.
“Hyundai has been selling EV’s in Australia for six years and investing in the technology globally for decades. It is our intention to bring many more EVs to the Australian market, while substantially reducing the emissions profile of our entire range.”
Toyota Australia president and CEO Matthew Callachor said Toyota has supported a fuel-efficiency standard that is calibrated to the unique requirements of the Australian market and leaves no-one behind.
“Toyota and the industry face huge challenges that must be addressed before these significant reductions can be realised,” Callachor says.
“Our task now is to get on with the job of delivering diverse technologies that will enable our customers to choose vehicles with lower or zero carbon emissions that best suit their circumstances.”
Along with Russia, Australia has been one of the only advanced economies in the world without a Standard, and, as a result Australian families are spending more on fuel than they need to be, the government says.
The Australian Government has closely consulted with a broad range of stakeholders over the past year and engaged with the more than 9,000 submissions made throughout the latest consultation period.
The Standard will give car makers an incentive to send us their most efficient vehicles, while ensuring Australians have access to the range of vehicles they need for work and leisure.
This constructive collaboration will deliver more choice of cheaper-to-run cars for motorists, while ensuring a sustainable and effective Standard.
These modifications include:
- Recategorising a limited number of 4WDs from passenger car to light commercial vehicle. This acknowledges that some off-road wagons use similar ladder-frame chassis, and need comparable towing capacity above 3 tonnes, to dual cab utes. This includes models such as the Toyota Landcruiser and Nissan Patrol;
- Smoothing the emissions trajectory for light commercial vehicles. This reflects adjustments announced by the US EPA to its vehicle Standard and smooths the transition for utes, vans and 4x4s;
- Adjusting the weight-based relative emissions limits (known as the break point), recognising that heavier vehicles emit more;
- Staging implementation to enable preparation and testing of essential data reporting capabilities. To ensure we get the implementation right in partnership with industry, the scheme will commence on 1 January 2025 but manufacturers will not begin earning credits or penalties until 1 July 2025.
To help accelerate the transition, the Government will provide $60 million to boost EV charging at Australian dealerships, under the Driving the Nation fund.
This is the right package of measures for Australia. It will transform Australia’s vehicle fleet to save families money, people will still be able to buy the vehicles they know and love while getting access to the safest, most modern, efficient cars.
More information on the Government’s planned New Vehicle Efficiency Standard is available at www.cleanercars.gov.au