ClimateWorks Australia today backed the federal government’s proposed light vehicle emissions standard for Australia but called for it to be phased in from 2020, two years ahead of the proposed schedule.
In its submission to the Ministerial Forum on Vehicle Emissions, ClimateWorks Australia argues the standard being proposed by the federal government was feasible and could deliver additional savings to motorists, reduce household energy costs and help achieve Australia’s emissions reduction goals.
ClimateWorks Australia Head of Implementation, Scott Ferraro said the government’s proposal to implement the most stringent of the three standards modelled in the Draft Regulation Impact Statement would deliver the most emission reductions and greater savings for motorists.
“Our analysis of the government’s own modelling shows that if the most stringent proposed target (105 gCO2 per km) were introduced from 2020 to 2025, it would deliver 6 per cent of Australia’s 2030 emissions reduction target,” he said.
“This will save an additional 41 million tonnes of CO2 by 2030, 140 million tonnes by 2040 and an extra $8.1 billion overall by 2040, compared with the least stringent target of 135 gCO2 per km by 2025.
“The strongest target also delivers over 2.6 times more fuel savings than the weaker target to 2030. This results in annual additional fuel savings of between $328 to $493 for an average driver doing 25,000 km per year, which is equivalent to reducing total household energy costs by up to 10 per cent.”
Mr Ferraro said a strong vehicle emissions standard was also needed to drive the uptake of low emissions vehicles in the Australian market and ensure motorists have access to the latest technology.
“Currently, the uptake of electric and other low emission vehicles in Australia is slow and the industry are saying this is in large part due to a lack of standards and other incentives,” he said.
Mr Ferraro said there was no reason for the government to consider delaying the introduction of the most stringent CO2 standard for light vehicles.
“Australia is one of the last developed markets to implement these fuel efficiency standards, with standards now covering over 80 per cent of the global automotive market,” he said.
“We support the federal government’s proposed target of 105 gCO2/km by 2025 for new light vehicles, but we encourage the government to phase in this standard sooner rather than later.
“The government is proposing to introduce the standard in 2022, rather than 2020 as they modelled in the Draft Regulation Impact Statement to allow for the transition to the Worldwide Harmonised Light Vehicles Test Procedure (WLTP), which better reflects on-road performance to that in the laboratory.
“However, planning for the implementation of the new test procedure is already being implemented overseas and the government has ample time over the next two years to put similar practices in place here.
“Our analysis shows that delaying the phase in of the standard by two years will result in a loss of 3.6 megatonnes of abatement over this period when approximately 2.5 million cars will be sold without a standard in place.
“The proposed standard includes additional credits to encourage uptake of low and zero emission vehicles, such as electric vehicles.
“The proposed design of the standard will encourage manufacturers to improve the efficiency and range of vehicles on sale in Australia. The proposed $100 per gCO2/km penalty for non-compliance is appropriate to encourage manufacturers to deliver more fuel-efficient vehicles to Australian consumers rather than simply pay the penalty.
“We have seen that without this regulatory mechanism in place, last year the improvement in fuel efficiency of new cars in Australia dropped to its lowest rate over the last 10 years. We are now well behind the European Union in terms of performance. Without strong standards, we’ll also fall behind the US and Canada, which is improving fuel efficiency at a similar rate to that required under the government’s proposed 105 gCO2/km target.”
ClimateWorks Australia is an expert, independent adviser, committed to helping Australia transition to net zero emissions by 2050. It was co-founded through a partnership between Monash University and The Myer Foundation and works within the Monash Sustainable Development Institute.
