New car emissions target finally on the cards: Federal Govt to launch consultation next month

The first move toward a national electric vehicle policy has commenced, with the newly-elected Labor Federal Government announcing further details will be released in September.

Minister for Climate Change and Energy, Chris Bowen, and Minister for Infrastructure and Transport, Catherine King, said a discussion paper would be released in the coming weeks for ‘wide consultation’ with the state and territory governments, industry officials, and consumer groups.

The pitch for the discussion paper was released by the Albanese Government today, suggesting buyers in the United Kingdom can purchase 26 low-emissions vehicles under $60,000 – and just five in Australia.

However, there is a slew of electric vehicles coming to Australia in the future, including more affordable options.

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Six years of ChargeFox membership is included with the sale of an E-Tron

The core element of the strategy is to grow electric vehicle sales in Australia by reducing costs and improving choice through government-led incentives.

It will also explore introducing vehicle fuel efficiency standards and improved CO2 emissions schemes.

Currently, Australia is left “behind the pack” as the only country in the OECD not to have, or be in the process of developing, these standards – apart from Russia.

“We’re committed to ensuring an Australian vehicle market provides consumers with easier access to affordable and popular cars, including EVs that are better for the back pocket and the environment,” said Minister King.

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Both federal ministers have written to relevant state and territory ministers to invite participation in the development of the strategy.

Key industry organisations – including the Federal Chamber of Automotive Industries and the Australian Automotive Dealer Association – have also flagged plans to consult with the Federal Government.

Currently, most electric vehicle strategies and incentives have been solely handled by state and territory governments, with the Australian Capital Territory recently announcing plans to ban the sale of internal-combustion vehicles by 2035.

At the national EV summit in Canberra today, Minister Bowen said consultation on the strategy would allow for “constructive and mature” talks on steps to push Australia to the front of the queue for electric vehicles.

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Image: Tesla Model Y vehicles arriving in Australia, courtesy Tesla Model 3 & Y Australia

“Standards that lack ambition will leave us at the back of the global queue longer for cheaper and cleaner vehicles,” he said.

“[The current legislation will] leave Australia in danger of being even more of a third-world dumping ground.

“Now is the chance to work together to get the job done.”

Bowen was joined by several key industry officials, including executives from Tesla and Volkswagen, at the inaugural EV summit organised by the Electric Vehicle Council, Smart Energy Council and the Australia Institute.

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Of note, the car brand’s key lobby group, the Federal Chamber of Automotive Industries, was absent after it faced ‘anti-EV’ allegations following the release of less-demanding targets compared to other countries, including the United States and the United Kingdom.

Paul Sansom, managing director of Volkswagen Group Australia, said a “federally mandated emissions target for our industry is non-negotiable if Australia’s supply of electric vehicles is to grow from a trickle to a flow and thereby start to meet ever growing demand.”

“Markets where automakers face financial consequences for failing to meet targets are prioritised for zero-emission vehicles,” he added.

“Volkswagen Group Australia wants binding regulations that compel our factories to consider us. Greater supply inevitably leads to greater affordability.”

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Robyn Denholm, the chair of Tesla, said government policy is a significant move forward in reducing vehicle emissions and “working in consultation with the industry is key.”

“Having a standard that doesn’t get us close to the European or US standard, I think, doesn’t cut it. That ambition of having a globally leading standard, or at least in keeping with global leaders, is really important,” she added.

“And 2030 is an important date have to have a date by which we are reducing emissions materially from our vehicle fleet, not just about EVs but reducing emissions from our petrol vehicles.

“We can’t accept the world’s dirtiest cars in Australia, which is what we have today. If we are out there talking about what standards are for petrol vehicles, we can clean up our act before we get to a fully electric world.”

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Mike Cannon-Brookes, CEO of software development company Atlassian, said 10 per cent of EV sales in the new-car market by 2024 would be a “tipping point”.

“We have to believe it is possible. Our friends over the ditch in New Zealand have gone from three per cent to 10 per cent in just over a year. We know that leap is entirely possible,” he added.

The Albanese Government has removed the fringe benefits tax and the five per cent import tariff for eligible electric vehicles, while it placed an EV incentive bill before Parliament in July.

In addition, the Government recently introduced legislation to push forward the introduction of low-sulphur petrol from 2027 to 2024, allowing for more efficient engines to reach Australian shores.