Tap the brakes on fuel rules, say carmakers
Labor is preparing to unveil its controversial New Vehicle Efficiency Standard, as the automotive industry demands the government pare back its ambitions in line with the US.
Labor is preparing to unveil its controversial New Vehicle Efficiency Standard imminently, as the automotive industry demands the government pare back its ambitions in line with the US.
The Australian understands that peak industry bodies and stakeholders met with government officials on Thursday afternoon in a strict off-the-record briefing, before which they were made to sign non-disclosure agreements.
The government would not confirm nor deny whether the meeting had taken place, despite it being confirmed with The Australian by numerous sources present at the briefing.
However, a spokeswoman for Transport Minister Catherine King confirmed Labor was “finalising the design” of the NVES and was also taking into consideration the changes in the US.
Washington on Thursday announced it would soften its proposed emissions standard to give automakers more time to adapt in response to criticism the original plan was too aggressive and could lead to job losses.
Rather than demanding 60 per cent of new vehicle sales be electric cars by 2030, the US Environmental Protection Agency revised the target down to 56 per cent by 2032.
“(Australian) officials are analysing the US announcement about its vehicle emissions standard, a program that has been in place since the 1970s,” Ms King’s spokeswoman said.
“We are finalising the design of the Australian New Vehicle Emissions Standard and considering a range of matters, including the US changes and sensible suggestions from stakeholders. Our focus is on getting the right standards so more Australians have more choice of new cars that are cheaper to run.”
The comments follow a request from the main car companies for Australia to follow the US and revise down its NVES targets.
Federal Chamber of Automotive Industries chief executive Tony Weber said Labor needed to “learn” from the US and take more time to ensure the policy would not have a negative effect on the car market and broader economy.
“Like in the US, Australian consumers should have time to embrace the shift and ensure they have access to the types of vehicles they want and need at prices they can afford,” he said.
“In addition to timing, the government should consider other elements of the US standards that includes vehicle multiplier credits, off-cycle credits such as air-conditioning credits, penalty structure, timing, and vehicle classification.”
It is understood the FCAI was not in the off-record briefing, after releasing modelling that suggested some petrol vehicles would increase by as much as $13,000.
An FCAI spokesman said the organisation continued “to stand ready to work productively with government to attain a more effective outcome that will achieve the required emissions reductions and that will support consumers in terms of the choice and cost of vehicles in the Australian market”.
The Climate Council has raised concern with the government giving any concessions to automakers and weakening what it says is a critical fuel efficiency standard.
Motor Trades Association of Australia chief executive Matt Hobbs said that for the US to formally confirm they were fundamentally weakening their standard was “critically important in the consideration of the Australian standard”.
“We need to read the doc and learn the lessons,” he said.
Mr Weber said the Albanese government had consistently said that “it is using the US scheme as a guide”, and added that it needed to slow down its NVES policy.
“Rushing to introduce a scheme, in just nine months time, without learning from the US experience is recipe for a disaster in Australia,” he said.
But Labor MPs and the crossbench have maintained the importance of a strong fuel efficiency standard, with Warringah independent Zali Steggall accusing Toyota of having influenced the US decision and warning against Australia being similarly lobbied.
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