Vehicle regulations could assist Australians in closing the gap in the electric vehicle market.
Environmental and motoring groups are pleased with the new rules that will lead to more efficient and environmentally friendly vehicles for Australian drivers in the next five years, despite previous disagreements over the legislation.
The Labor government’s proposed New Vehicle Efficiency Standard was approved by the parliament on May 16 with the backing of the Greens, after undergoing two public consultations and two years of debate on its contents.
While environmental and motoring groups embraced the change and its potential to align Australian regulations with global standards, some cautioned that challenges remain, such as securing compliant vehicles and additional government and corporate investments.
The standard, effective from 2025, will establish emission targets for vehicles, with penalties enforced for automakers with fleets that do not meet the limits or fail to trade credits with other car manufacturers.
Australia, along with Russia, had been among the few developed nations without a standard in place.
Behyad Jafari, Chief Executive of the Electric Vehicle Council, stated that the rules would signal to car manufacturers worldwide that Australia will no longer accept outdated, high-polluting vehicles rejected by other countries.
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This decision sends a strong message to the global automotive industry, indicating that Australia now demands the same electric vehicle options as those offered in the U.S. and Europe,” said Jafari. “Australian drivers will enjoy access to a wider selection of vehicles, reduced fuel costs, and lower emissions.”
Joe Rafalowicz, Head of Climate and Energy at Greenpeace Asia Pacific, stated that the standard will have a significant impact on reducing air pollution in Australia, resulting in 80 million tons less carbon emissions from cars by 2035, equivalent to Victoria’s annual emissions.
Despite expressing the need for rule changes, Tony Weber, CEO of the Federal Chamber of Automotive Industries, mentioned that its members will collaborate with the government on implementation and appreciate the certainty the standard will bring to the industry.
James Voortman, CEO of the Australian Automotive Dealer Association, reassured compliance with the scheme among car dealers and welcomed the $60 million investment in EV chargers at dealerships.
Emma Foley, Managing Director of Uber Australia, highlighted the requirement for governments and companies to step up to meet the standards, setting targets for transitioning to low-emission vehicles and emphasizing the need for sustained investment across public and private sectors.
