Chris Bowen lauds fuel saving benefits as fight over car emissions cap shifts up a gear

Motorists could make savings on fewer trips to the fuel bowser if a new plan to slash vehicle emissions is introduced, the Albanese government claims.

Energy Minister Chris Bowen has ramped up his sales pitch for proposed pollution caps on new vehicles, promising motorists living in outer suburban and regional areas could save up to $1800 a year in fewer trips to the bowser.

The intervention comes as the Albanese government proposes to introduce fuel efficiency standards, designed to commence next year, which would level fleetwide pollution caps on automotive manufacturers, bringing Australia into line with other developed nations.

While the proposed standards won’t ban any particular model, brands will be penalised if the average emissions of all vehicles they import is higher than an emissions target that will be slashed by more than 60 per cent from 2025 through to the end of the decade.

Energy Minister Chris Bowen faces a campaign against the vehicle emissions overhaul from the Coalition and segments of the automotive industry. Picture: NCA NewsWire / Martin Ollman

With the cap lowered each year, the standard will essentially operate as a carbon price, forcing car makers to either sell more zero and low emissions vehicles, cut back on the sale of high-emitting models such as utes and SUVs, or incur a financial penalty.

Fending off a campaign from the Coalition and much of the car industry, who have criticised the emissions overhaul and argue that it will add thousands to the cost of a new vehicle, Mr Bowen on Sunday released new departmental analysis calculating how much motorists can expect to save via lower fuel costs.

According to departmental estimates, a motorist with a new vehicle from Gosford or Wyong on the New South Wales Central Coast would save more than $1600 a year on average by 2028.

Victorian motorists living on the Surf Coast and Bellarine Peninsula would be in line for a $1695 saving.

Drivers from Caboolture and Ipswich in Queensland would save in excess of $1300 a year, the department said.

Meanwhile, Western Australian motorists in Bunbury, Margaret River and Busselton would be in line for $1200 off their annual fuel bill.

The new vehicles emissions standards are designed to spur uptake in low and zero-emissions car models. Picture: NCA NewsWire / Naomi Jellicoe

However, motorists residing in cities and the inner suburbs, who generally drive far fewer kilometres, would receive a smaller saving with the average motorist in inner-Sydney saving just $826.

The analysis also pointed to the inefficiency of Australian vehicles when compared to their international peers, asserting that new Australian passenger cars used 15 per cent more fuel than in New Zealand, 20 per cent more than in the US and 40 per cent more than in the EU.

Speaking on Sunday, Mr Bowen was adamant that the scheme would not lead to an increase in the price for utes and other vehicles.

“That hasn’t happened anywhere else in the world, and why would it happen in Australia?” Mr Bowen told the ABC’s Insiders program.

“Peter Dutton is arguing that Australians deserve less choice and should be paying more for more petrol.

“He can make that argument if he wishes. The government chooses to make the argument that it’s about time Australia catches up with the rest of the world and gives Australians better choices.”

Asked about the lack of electric and low-emissions utes and four-wheel drives available, which has also been a frequent criticism of the policy, Mr Bowen maintained these options would increasingly become available.

“There are some, and they are improving every day,” he said.

“This is all about choices … and what we’re not doing is saying we’re going to phase out any particular type of car.”

In an earlier interview, Coalition energy spokesperson Ted O’Brien doubled down on the Coalition’s line of attack, branding the policy as a “tax”.

“We’re happy to work constructively with the government, but they have to strike the right balance between emissions, price and choice,” he told Sky News’ Sunday Agenda.

“They have failed to strike any balance there.”

The furore over fuel efficiency standards has sparked a fracture within the sector, and led to the resignations of electric vehicle manufacturers Tesla and Polestar from the Federal Chamber of Automotive Industries (FCAI) last week.

The pair claimed the lobby group was working to undermine the scheme’s implementation, with Tesla accusing the FCAI of making “demonstrably false” claims the standard would increase car prices.

Both brands would be key beneficiaries under the scheme as they could sell credits received for meeting the standard to manufacturers that exceeded it, thus boosting their bottom line.

Originally published as Chris Bowen lauds fuel saving benefits as fight over car emissions cap shifts up a gear