Australia is set to implement a new federal plan that will penalise car makers for importing internal combustion engines. The plan aims to increase the supply of electric vehicles in the Australian market and reduce carbon emissions by at least 3 million tonnes by 2030. The Labor party claims that this is the first national electric vehicle strategy in the country, which will offer consumers a wider range of electric vehicle choices and encourage low-emission vehicle use.
Transport is the third-largest source of emissions in Australia, according to the government. This new strategy will bring the country in line with the largest car markets in the world, including Europe.
The implementation of a fuel efficiency standard will be introduced, requiring car makers to ensure that the average emissions of all cars sold in a given period are below a certain threshold. This may drive up the cost of high-emissions models that are currently dominating the market and encourage the sale of EVs.
Labor has insisted that this strategy will pave the way for Australians to purchase more efficient and low-emission vehicles, ultimately reducing emissions and lowering the cost of running a car.
The plan will also include public and industry consultations to finalize details in the coming months. The new standard will only apply to new cars, not retrospectively, allowing consumers to choose the vehicle they want to drive. Australian emissions are legislated to fall by 43% by 2030 from 2005 levels, and passenger cars contribute almost 10% to the total national emissions.
The introduction of a fuel efficiency standard could save motorists an average of $519 per year in fuel costs, according to previous analysis. Australia’s EV sales are around four times lower than the global average, highlighting the need for such a strategy.
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