The Albanese government’s promise to introduce a fuel efficiency standard for cars has been “overwhelmingly” supported by a public consultation process, Labor says.
Labor will now complete an impact analysis and release details of its preferred model for a standard “before the end of this year”.
The consultation process attracted about 1,200 submissions that “overwhelmingly support” the introduction of a fuel efficiency standard, the government says, as it looks to improve domestic access to cleaner and more fuel-efficient vehicles.
The Albanese government has promised but not yet introduced a fuel efficiency standard. Australia stands alongside Russia as one of the few developed nations without one.
“Australia needs fuel efficiency standards that make us competitive with other parts of the world for cleaner, cheaper-to-run cars,” the climate change and energy minister, Chris Bowen, said.
Fuel efficiency standards set by governments limit car emissions by creating a cap for emissions across a manufacturer’s overall sales. This provides an incentive for carmakers to supply low- and zero-emissions vehicles and penalises companies that fail to do so.
Electric vehicles are becoming increasingly popular among Australians, with sales during the first half of 2023 already eclipsing last year’s annual total.
But Australia’s lack of a fuel efficiency standard has led to local supply issues. The industry reports new electric cars often sell out within hours of coming on the market.
As more and more right-hand drive countries introduce a standard, manufacturers are diverting more EVs away from the Australian market so as to not miss out on incentives, the Electric Vehicle Council has said.
The transport minister, Catherine King, said she looked forward to progressing a fuel efficiency standard “that will make a real difference for Australia”.
A fuel efficiency standard is seen as a key part of Australia achieving its 2030 target of reducing emissions by 43% from 2005 levels.
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