Energy Minister Chris Bowen under pressure to flesh out EV policy

Energy Minister Chris Bowen faces a stern test of his green credentials, as pressure mounts over mandated CO2 targets for new cars.

The government is coming under increasing pressure to introduce a mandatory CO2 emissions target for new vehicles, as both the Greens and the Teal independents push for more decisive action on climate change.

Climate Change and Energy Minister Chris Bowen faces a stern test of his green credentials tomorrow when he addresses an electric vehicle summit organised by tech billionaire Mike Cannon-Brookes.

There is an expectation Mr Bowen will at least flag the introduction of a mandatory CO2 target in his keynote speech to an audience that includes the car industry, EV advocates and vehicle charging infrastructure providers.

A mandatory CO2 target was initially flagged more than a decade ago, in 2008, but successive governments have baulked at the idea, despite the establishment of enforceable targets – with financial penalties attached – around the world.

Climate Change and Energy Minister Chris Bowen is expected to outline the government’s EV policy tomorrow. Picture: NCA NewsWire / Gary Ramage

Both the Greens and the Teal independents have indicated they expect nothing less than a CO2 target from the government.

Greens Deputy Leader Senator Mehreen Faruqi, who is also addressing the forum, will call for a commitment to a CO2 target, as well as incentives of up to $10,000 to encourage EV sales.

EVs make up just 2 per cent of the local new-car market, compared with roughly 12 per cent in Europe.

Senator Faruqi warned that the government would likely need the Greens to pass its EV legislation through parliament, while a number of Teal independents have also signalled their support for a mandatory efficiency target.

Greens Deputy Leader Mehreen Faruqi is pushing for an enforceable CO2 emissions target. Picture: AAP/Joel Carrett

“We need policies to push out old, dirty and obsolete vehicles and policies to bring in clean, better, more efficient electric vehicles and we need the infrastructure to power up Australia’s new electric vehicles and our vehicle manufacturing industry,” she said.

“The United States, China, Japan and Europe have had mandatory vehicle emission standards for decades. We still do not. It is clear what needs to be done, we don’t need more reviews or consultations. We just need to get on with it,” she said.

Senator Faruqi said Australia had become a “dumping ground for dirty, expensive, inefficient vehicles”.

The car industry argues that it is hard to secure electric vehicle supply from head office as shipments are being sent to countries with targets and penalties.

Teal independents Kylea Tink, Monique Ryan and Zoe Daniel put out a joint statement calling for more action on EVs.

Teal independent Kylea Tink says Australia needs to catch up with Europe on emissions. Picture: NCA NewsWire/Gary Ramage

Ms Tink, the federal member for North Sydney, said she would move to bring emissions standards into line with international markets within two years.

“We must keep up with the pace set by the Europeans. I will also push the Government to legislate binding fuel efficiency standards to get us on a trajectory to no new fossil fuel vehicles by 2035.”

Member for Kooyong, Dr Monique Ryan, called for the government to review its luxury car tax, removing tax waivers for petrol and diesel vehicles.

Sales of electric vehicles are being hampered by lack of supply. Picture: Thomas Wielecki

She argued that by changing the “outdated” definition of a “fuel efficient” vehicle, the government could add $411 million to its coffers while encouraging the take up of electric vehicles.

“A change to the definition of fuel efficiency from 7 litres of fuel per 100kms to 4L/100km will make low and zero emissions vehicles in this price range more competitive, increasing overall supply of these vehicles into the country,” she said.

She also called for a mandatory CO2 target.

“The introduction of these standards will cost us nothing but will ensure manufacturers supply a greater range of affordable EVs to our market to balance imports of carbon-emitting vehicles.”

Electric vehicles are being redirected to countries with tough emissions laws. Picture: Thomas Wielecki

The Greens are calling for an initial CO2 target of 105 grams per km, scaling down to zero by 2030, when petrol and diesel vehicles would be banned.

Faruqi said a $10,000 subsidy for EV buyers would boost demand.

“These measures aren’t controversial in the rest of the world. They would put Australia in line with leading countries – for example the United States who are extending a $7500 subsidy for new electric vehicles out to 2032.”

Mr Bowen’s office was contacted for comment.