The Australian government has watered down its proposed vehicle emission standards amid pressure from car manufacturers.
On Tuesday, Chris Bowen, the minister for energy and climate change, and Catherine King, transport minister, announced changes to fuel efficiency legislation to be introduced to parliament on Wednesday.
It came one month after Mr Bowen unveiled the government’s proposal for Australia’s first New Vehicle Efficiency Standard, which would come into effect on Jan. 1, 2025.
Under the changes, the average emissions of light commercial vehicles (LCVs) would need to be reduced by 50 per cent by 2029.
It is for manufacturers to avoid penalties from the 60 per cent target set in February.
New passenger vehicles (will remain subject to the 60 per cent target, but some high-emitting large sports utility vehicle models will be reclassified from PVs to LCVs.
Mr Bowen said this at a news conference alongside Ms King and representatives from Toyota, Hyundai, Tesla, the Electric Vehicle Council and the Motor Trades Association of Australia.
Mr Bowen said the government had found a compromise that accounts for the concerns of the industry.
The government promised to implement fuel standards in the lead-up to the 2022 general election but faced pushback from the automotive industry after detailing the policy in February.
The Federal Chamber of Automotive Industries (FCAI), the sector’s peak body, argued that the proposal would raise the price of some car models by thousands of dollars.
Early in March, Tesla quit the FCAI over the organisation’s campaign against the vehicle efficiency standard, but Tesla Australia representative Sam McLean said on Tuesday that the revised policy was a solid compromise.
