Growing concerns suggest Australia might continue receiving inefficient vehicles as it crafts legislation to curb carbon emissions from new cars. Australia remains one of the few developed countries without such standards, even though discussions began around 15 years ago.
While the federal government collaborates with diverse stakeholders, from environmentalists to car manufacturers, to finalise its policy, a rift has formed. Notably, Tesla and the Climate Council accuse Australia’s major car lobby of advocating for policies that could hinder the transition to cleaner vehicles.
Griffith University’s Professor Matthew Burke highlights Australia’s lag in adopting these standards, stating, “We’re really behind other nations.” Currently, electric cars account for merely 6% of new car sales in the country.
The government asserts that these standards will boost the electric vehicle market, thereby reducing their prices. Passenger cars in Australia contribute to roughly 10% of the country’s greenhouse gas emissions.
The recent public consultation regarding the new standards witnessed about 2,700 submissions, with a large majority, including Tesla, the Climate Council, Toyota, Hyundai, and the Federal Chamber of Automotive Industries (FCAI), in favour of the standards.
Countries like Europe, the UK, and the US have already adopted such standards. These often set an overall emission cap for new cars, allowing high-emission vehicles only if balanced out by low-emission ones.
In its proposal, the National Roads and Motorists Association (NRMA) suggests a 2035 target for the full transition to electric vehicles. However, Hyundai aims for a complete electric fleet only by 2040.
A controversial policy called “multiplier credits” has emerged, allowing manufacturers to count a low-emissions vehicle sale multiple times, potentially lowering their average emissions. Both Tesla and the Climate Council have criticised this approach. In contrast, the NRMA finds it beneficial, particularly for battery-operated commercial vehicles.
Tesla’s submission likens the credits to a “loophole”, suggesting it’s akin to counting half-centuries in cricket twice, which distorts real performance. Tesla’s opposition also derives from its vested interest in keeping credits out of any standards.
Professor Burke concurs with Tesla’s stance, noting that such credits especially benefit traditional car manufacturers. The Climate Council also advocates against the policy, urging the government to disregard it.
The FCAI’s policy has further faced criticism from global think tank InfluenceMap, which alleges a negative campaign against climate policies by the FCAI.
As the government continues consultations with stakeholders, including the FCAI, Hyundai, Toyota, Climate Council, and Tesla, the Climate Change and Energy Minister, Chris Bowen, emphasises the complexity of crafting these standards.
Major players like Toyota, Hyundai, and the FCAI declined interviews but reiterated their support for efficiency standards.
The government aims to clarify its stance on the efficiency laws by year’s end. The next step will be to enact these laws.
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