Adjustments made to New Vehicle Efficiency Standard

The Australian Government will be introducing legislation for a New Vehicle Efficiency Standard that is projected to reduce emissions for new passenger vehicles by more than 60 per cent by 2030, while having emissions of new light commercial vehicles over the same period.

The New Vehicle Efficiency Standard targets for passenger vehicles catch up to comparable economies by the end of the decade.

The Australian Government has consulted with stakeholders over the past year and engaged with the more than 9,000 submissions made throughout the latest consultation period.

The Standard is designed to give car makers an incentive to send Australia their most efficient vehicles, while ensuring Australians have access to the range of vehicles they need for work and leisure.

Modifications from the previous Standard include:

  • Recategorising a limited number of 4WDs from passenger car to light commercial vehicle. This acknowledges that some off-road wagons use similar ladder-frame chassis, and need comparable towing capacity above 3 tonnes, to dual cab utes. This includes models such as the Toyota Landcruiser and Nissan Patrol;
  • Smoothing the emissions trajectory for light commercial vehicles. This reflects adjustments announced by the US EPA to its vehicle Standard and smooths the transition for utes, vans and 4x4s;
  • Adjusting the weight-based relative emissions limits (known as the break point), recognising that heavier vehicles emit more;
  • Staging implementation to enable preparation and testing of essential data reporting capabilities. The scheme will commence on 1 January 2025 but manufacturers will not begin earning credits or penalties until 1 July 2025.

To help accelerate the transition, the Government will provide $60 million to boost EV charging at Australian dealerships, under the Driving the Nation fund.

Find out more about the Standard here.

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