The Albanese government has made key concessions to the manufacturers of utes by agreeing to soften the emission reduction targets that will apply to the popular vehicles in return for the adoption of environmentally beneficial technology.

The concessions, which will mimic in effect a credit scheme that applies in the United States by rewarding manufacturers for additions such as environmentally friendly air conditioning gases, are designed to prevent a political backlash to the proposed New Vehicle Efficiency Standards (NVES).