Emissions Standard

The Federal Government announced it will develop fuel efficiency standards as the pillar of its National Electric Vehicle Strategy.

Fuel efficiency standards are frameworks that set a limit on the average emissions from new cars sold by each manufacturer, with the aim to gradually reduce this limit over time to achieve emission reduction targets.

Without a fuel efficiency standard in Australia global manufacturers have been prioritising other markets which penalise car brands for not meeting these emissions benchmarks.

While incentives and rebates are broadly established for electric vehicles, fuel efficiency standards will ultimately increase the range and further lower the cost of zero and low emission vehicles that Australians can purchase. The Federal Government will now consult on the design of its fuel efficiency standards, including with the MTA, before it is announced later this year.

The development and legislated introduction of the standards cannot however be expected to be a standalone solution to emissions reduction.

Complementary policies that incentivise consumer demand and ensure we have adequate charging infrastructure will be critical to support electric vehicles into the Australian market.