The Australian government has announced it will introduce legislation for a New Vehicle Efficiency Standard “as soon as possible” with the standard to come into effect by 1 January 2025.
In a joint media release Minister for Climate Change and Energy Chris Bowen and Minister for Transport Catherine King announced the release of the government’s “preferred model” for the New Vehicle Efficiency Standard while opening up another round of public consultations which will run until March 4.
“Because of a lack of action on an Efficiency Standard, Australian families are paying around $1000 a year more than they need to be for their annual fuel bill – the Albanese Government is delivering long-term cost-of-living relief to fix that for new vehicles and put money back in people’s pockets.” said Minister Bowen in the joint statement.
“We’re giving Australians more choice to spend less on petrol, by catching up with the U.S– this will save Australian motorists $100bn in fuel costs to 2050.”
“This is about ensuring Australian families and businesses can choose the latest and most efficient cars and utes, whether they’re petrol and diesel engines, or hybrid, or electric.”
In its preferred model, the Australian standard would align with the US standard by 2028 which the government says will save Australians about $1000 per vehicle per year. Passenger cars in the US are currently on average 31% more efficient than in Australia and utes are 24% more efficient.
The new Australian standard will apply to new passenger and light commercial vehicles.
Clean energy and climate groups welcome the new standard
While the final design is not yet clear, climate and clean energy groups welcome the announcement of the government’s preferred model.
The Smart Energy Council, which hosted the National Electric Vehicle Summit in late 2022 where the government first committed to fuel efficiency standards, has hailed the announcement a “Big win for all Australians”.
“Australians are paying far too much for petrol, having been forced to drive much less efficient cars than any other developed country. This must, and will, change.” said John Grimes, Chief Executive of the Smart Energy Council following today’s announcement.
“New Vehicle Efficiency Standards could be the most important policy to slash Australia’s soaring transport emissions in history and if the Albanese Government adopts the most ambitious approach, we will see greater emissions reductions even earlier.”
“The Smart Energy Council urges the Albanese Government to increase its ambition and meet and beat the United States’ standard by 2026.”
More to come…
Daniel Bleakley is a clean technology researcher and advocate with a background in engineering and business. He has a strong interest in electric vehicles, renewable energy, manufacturing and public policy.