Joe Biden leaves Chris Bowen in the lurch after reports US plans to scrap ambitious auto emissions scheme
President Jo Biden will drop plans to force two thirds of new cars to be EVs by the end of the decade due to falling demand and union and automaker opposition.
National
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The Albanese government must reconsider its “overly ambitious” emissions standards for new vehicles after it was revealed that the US was walking away from their own plans to force Americans into electric cars, automotive experts have warned.
Overnight Monday the New York Times and Washington Post reported the Biden administration was planning to relax strict vehicle emissions rules designed to make around two-thirds of new vehicles sold in the US fully electric by 2032.
The move would give automakers more time to ramp up sales of EVs, pushing the requirement for a sharp increase in zero-emissions vehicle sales well back past 2030.
The move follows the UK last year pushing back its target for phasing out new petrol and diesel vehicles from 2030 to 2035.
While the Albanese government has not finalised its own targets, Energy Minister Chris Bowen has frequently referred to the US model in promoting emissions targets to increase EV sales in Australia.
Last year, 7.2 per cent of new car deliveries in Australia were for fully electric models.
Under Labor’s preferred option, automakers would penalised for average CO2 emissions across their fleet, with the threshold lowering every year.
Analysis has found this process would drive up the cost of petrol and diesel vehicles by as much as $9,000 by 2029 for popular vehicles such as the Ford Ranger, which was Australia’s number one seller last year.
“The US appear to be looking at this again and thinking whether their target is overly ambitious or if it is practical and they seem to think this is overly ambitious,” said Tony Weber, chief executive of the Federal Chamber of Automotive Industries.
“I did not think the government’s preferred position was possible before this news, and I certainly don’t think it is after this.”
Mr Weber pointed out that the US emissions reduction scheme was also based on heavy subsidies to purchasers and manufacturers, which Australia is not contemplating.
“Since the US is modelling on support packages as well as ambition, and they’re finding it too ambitious, where does it leave us being ambitious without the support?”
Despite the differences in schemes, energy minister Chris Bowen has repeatedly used the US example to reassure Australian motorists that the new standards would not be disruptive.
Earlier this month Mr Bowen said, “I think people would understand that the US is, you know, famous for its big pick-up trucks, its big cars, they love big cars, they travel long distances like us.”
“But in the US on average motorists spend 20 per cent less on fuel because their cars are 20 per cent more efficient than ours.”
Shadow energy minister Ted O’Brien said Minister Bowen should cut the cheap salesman’s routine and shoot straight with the mums and dads of Australia about the real impact of his family car tax.”
“The U.S. subsidises consumers and couldn’t get the scheme to work, while Bowen plans to sting Australian consumers with a tax yet somehow thinks his scheme will miraculously work.”
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