The Federal Government has struck a deal with the Greens to pass a bill that will implement new standards for vehicle manufacturers to reduce the emissions of their new cars. 

The New Vehicle Efficiency Standards will set an average emissions limit on the vehicles car makers sell each year, with penalties if their cars on average exceed carbon emissions limits.

That emissions ceiling would be lowered each year, requiring car makers to progressively sell more fuel-efficient and lower-emission vehicles to avoid a penalty.

Smart Energy Council Chief Executive, John Grimes, said that Australia has finally joined the rest of the world in having efficiency standards for new vehicles.

“The Smart Energy Council has long advocated for strong fuel efficiency standards and the Federal Government first announced it was introducing these standards at the Smart Energy Council’s National Electric Vehicle Summit in August 2022,” Mr Grimes said. 

“We’ve been working non-stop to secure the government’s commitment to this major policy. A huge congratulations to Minister Chris Bowen and the Federal Government on the passing of this legislation.

“For too long, Australia was alone with Russia on the lack of fuel efficiency standards. That is no longer the case.”

“I’d like to congratulate the Greens too, for negotiating a successful path forward on this important, and smart benchmark to decarbonise Australia’s vehicles.”

With the right settings, this important policy could deliver up to $1,000 in fuel savings per new vehicle by 2028, and will only apply to new cars, rather than existing vehicles.

The new Standards mean car manufacturers will have targets for average emissions per kilometre from new vehicles sold.

“This has been a long time coming, but it finally brings us into line with comparable forward looking economies around the world. 

“Developing economies around the planet took this road long ago, it was past time we caught up.”

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