The Federal Government has committed to introducing a New Vehicle Efficiency Standard with final submissions on the three options due on 4 March 2023. We have analysed the 86 page Impact Analysis report in a blog post earlier this month.

We have opted to support the most ambitious option C, and advocated for bringing the start date forward by six months to July 2024, rather than starting the scheme in January 2025.

The government’s preferred Option B should be viewed as a minimum basis for the standard.

Submissions close on 4 March 2024. Follow this link for an individual or an organisation that will run through a short series of questions. A file with a written submissions can also be submitted. Greenpeace have done a guide into How to make a submission to the Government’s new car pollution standards, which we based our submission on and elaborated a little more.

The Climate Council says the lack of a Vehicle efficiency standard means Australians are paying way more at the petrol pump for fuel:

On average, a new passenger car sold today in Australia will consume 6.9 litres of fuel per 100 kilometres (L/100km), leading to an annual petrol bill of almost $1,460. This is nearly $720 more per year than new European cars, which use just 3.5L/100km, and almost $570 more than new American or Chinese cars which use 4.2L/100km. 

Similarly, new utes and vans in Australia use 9.9L/100km on average, resulting in an annual petrol bill of almost $2,880. This is $1,250 more every year than equivalent new vehicles in Europe or China, where average fuel efficiency is 5.6L/100km , and nearly $1,110 more than in the United States.

Climate Council 21 February 2024

Climate Councillor and economist, Nicki Hutley, said: “Our long-time lack of fuel efficiency standards makes us a dumping ground for older, less efficient cars. Australians are paying far more for fuel because we are driving inefficient petrol-guzzling cars the rest of the world has rejected. 

“An immediate benefit of making cars more efficient is that the average new car will consume less fuel to drive the same distance, lowering fuel bills and helping Australians tackle cost of living pressures.

“An effective New Vehicle Efficiency Standard will bring us up to speed with the majority of the world that already has similar standards in place. Drivers in these countries are already enjoying the savings and choice of cleaner, cheaper-to-run cars Aussies have missed out on for decades.

“It’s time for the Federal Government to put the pedal to the metal and deliver this standard so Australians can start seeing the same benefits already enjoyed by drivers overseas.”

Our Key Recommendations

Our key recommendations for the New Vehicle Efficiency Standard:

1. The curent climate emergency and need to reduce transport emissions should
   determine target strength
2. While Option C and B are both acceptable, Option C is preferable as it ramps
   up faster, and has stronger targets, more emissions reduction.
3. NEVS should be started 6 months sooner, from July 2024 in trial mode.
4. Targets are sufficiently distant for supply to catch up.
5. SUVs should be considered passenger vehicles
6. The NVES should encourage lighter vehicles
7. Penalties should be substantial
8. Loopholes should be ruled out
9. Emissions should be tested in real time

Read our full submission here:

References:

FEBRUARY 7, 2024, Climate Action Merribek, New Vehicle emission standards proposed to start from 2025, https://climateactionmerribek.org/2024/02/07/new-vehicle-emission-standards-proposed-to-start-from-2025/

Climate Council, 21 February, 2024, Don’t pay double: More efficient new vehicles will lower fuel bills, https://www.climatecouncil.org.au/resources/dont-pay-double-more-efficient-new-vehicles-will-lower-fuel-bills/

Climate Council Briefing Paper, 21 February 2024, Aussies would pay less at the petrol pump with clean, efficient cars like those sold overseas, https://www.climatecouncil.org.au/wp-content/uploads/2024/02/Petrol-bill-international-comparison_160222024.pdf

Climate Council Factsheet, 8 February 2024, Busting Big Auto Myths About Fuel Efficiency Standards, https://www.climatecouncil.org.au/resources/they-would-say-that-wouldnt-they-busting-big-auto-myths-about-fuel-efficiency-standards/

Climate Council, 6 February 2024, Factsheet. 10 things you should know about Fuel Efficiency Standards, https://www.climatecouncil.org.au/how-australia-can-boost-electric-vehicle-supply/