Arguments by car makers and industry lobbyists against the rapid introduction of first world fuel standards have been dismissed by influential think tank The Grattan Institute, which says they are critical for Australia to meet its 2050 net-zero emissions goal and will raise prices “by about only 1 per cent”.

The Albanese government last month unveiled a proposal for each car maker to reduce its average fleet emissions across passenger and light commercial vehicles by 61 per cent and 62 per cent from next year to 2030, from benchmarks in line with US standards set more than a decade ago.