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The Albanese Government on Wednesday launched Australia’s first National Electric Vehicle (EV) strategy, potentially marking the beginning of a new era in electric mobility.
The strategy is designed to ensure better vehicle choices, lower emissions and cheaper-to-run cars for Australian citizens.
It will also increase the uptake of EV sales; Australia currently lags behind the rest of the world at four times lower than the global average.
As part of the strategy, the government will introduce a Fuel Efficiency Standard to measure how much carbon dioxide a car produces while running.
Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King said the government had moved toward standards that worked well for the Australian market.
“This strategy offers a historic opportunity to develop fuel efficiency standards that learn from international best practice while recognising the unique needs of Australians,” Minister King said.
“More than 85 per cent of all cars sold in the world are subject to fuel efficiency standards, and it’s time Australians were offered the same choice.”
Until now, Australians have missed out on choosing from an extensive range of EV models simply because there was no standard in place, as manufacturers prioritised more efficient vehicles for countries with fuel standards in place.
Minister for Climate Change and Energy Chris Bowen said the government had already cut taxes on EVs through the Electric Car Discount, which could save up to $11,000 a year on a $50,000 electric vehicle.
“Thanks to the Albanese Government’s leadership, two and half times more EVs are being sold this year than they were at this time last year,” Minister Bowen said.
The Fuel Efficiency Standard will only apply to new cars, enabling consumers to choose the vehicle they want to drive.
On average, new cars in Australia use 40 per cent more fuel than the European Union, 20 per cent more than the United States, and 15 per cent more than New Zealand.
Is this enough to put more EVs on the ground?
Australia’s Climate Council has warned that the government would be “driving with a flat tyre” by trying to deliver its national EV strategy if it did not design appropriate fuel efficiency standards.
The Climate Council is calling for efficiency standards that set a clear pathway to net-zero targets by at least 2025 and that align with other car markets, such as New Zealand, the US and Europe.
The Council said the standards needed to be legislated to enforce mandatory cooperation from auto manufacturers and deliver a genuine reduction in emissions that avoided credits and loopholes that could undermine their effectiveness.
Further, the standards should be accompanied by other policies that support and enable the uptake of lower- and zero-emission vehicles.
On top of this, the Climate Council urged the government to review current tax incentives that skewed purchases towards heavier and higher-emitting vehicles and to support Australians on lower incomes to swap older, more polluting cars for cleaner and cheaper-to-run vehicles.
The Electric Vehicle Council chief executive Behyad Jafari welcomed the national EV strategy but warned that the government would need to act swiftly and boldly to calibrate and enforce Australia’s fuel efficiency standards.
“If Australia is serious about developing a local EV value chain to secure our future prosperity, the first crucial step to secure investment is to demonstrate we have a strong local market for these products,” Mr Jafari said.
Following consultations, the government will release its proposed Fuel Efficiency Standard by the end of 2023.
