The Australian federal government said it will reconsider introducing fuel efficiency standards for passenger vehicles. A consultation paper on the issue next month will also outline an electric vehicle (EV) strategy as part of efforts to reduce greenhouse gas (GHG) emissions.
"We believe that now is the time to have a sensible discussion about whether fuel efficiency standards could help improve the supply of electric vehicles into our market, to address the cost of living impacts of inefficient cars and to reduce emissions from the transport sector," said Australian energy and climate minister Chris Bowen. Transport accounted for 18pc of the country's total emissions in 2021.
Australia is the only country in the OECD to not have, or be in the process of developing, fuel efficiency standards, Bowen said.
Australia has carried out several reviews over the past two decades to introduce mandatory fuel efficiency standards but has previously faced resistance from the car industry. But Australia stopped manufacturing motor vehicles in October 2017 and now imports all its passenger vehicles, while it is dependent on oil product imports to meet its 1mn b/d liquid fuel demand.
Australia imported A$46.71bn ($32.27bn) worth of crude feedstock and oil imports in the 2021-22 fiscal year to 30 June. Australia's product imports this year hit a record high in June, reflecting the closure of two Australian refineries last year, while its crude imports fell to their lowest daily average in over 11 years. Australia also has a target to reduce GHG emissions by 43pc by 2030 from 2005 levels.
The consultation paper will also outline the government's plans to boost the take-up of EVs, which accounts for 2pc of current new cars sales in Australia. This compared with average of 15pc of new car sales in the UK and 17pc in the EU in other developed countries.
The government plans to set up a truly national EV charging network with charging stations at an average interval of 150km on major roads, Bowen said. It also plans to set a low emissions vehicle target for the Australian government's car fleet of 75pc of new leases and purchases by 2025.
"With thousands of vehicles in the Commonwealth fleet, it is big enough to encourage more EV model introductions to Australia and to expand a resale market," Bowen said.
Australia's Climate Change Authority recommended in 2014 the introduction of fuel efficiency standards to reduce the emissions intensity of the Australian light vehicle fleet from 192g of carbon dioxide (CO2)/km in 2013 to 105g of CO2/km in 2025. Modelling later done by the Bureau of Infrastructure, Transport and Regional Economics, as part of the Australian ministerial forum into vehicle emissions, found these standards would have a net benefit to the economy of A$13.9bn by 2040 and save Australia A$48.70 for every tonne of CO2 avoided, said a report by think tank the Australian Institute.
