Two of Australia’s largest automotive industry groups are at odds over the federal Opposition’s proposal to scrap fines for carmakers who exceed emissions targets under the Latest Vehicle Efficiency Standard (NVES).
As reported earlier today, Opposition leader Peter Dutton has committed to axing the federal government’s NVES penalties for carmakers if elected next month.
While the NVES got here into effect on January 1, 2025, carmakers won’t accrue penalties for exceeding CO2 targets until July 1, 2025.
All recent passenger and light-weight industrial vehicles sold with a mass of lower than 4.5 tonnes are covered under the scheme.
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Under the laws because it stands, if carmakers exceed a median carbon dioxide emissions goal on the vehicles they sell every year, they will probably be penalised $100 for each gram per kilometre CO2 for every vehicle which exceeds the goal.
For 2025, the mandate for passenger cars (Type 1) is 141g/km or less of CO2, with light industrial vehicles and heavy-duty SUVs (Type 2) set at 210g/km.
These CO2 caps will reduce yearly until 2029, after they will probably be much lower at 58 and 110g/km respectively, forcing manufacturers to sell increasingly efficient vehicles.
The Federal Chamber of Automotive Industries (FCAI) – the height body for carmakers in Australia – echoed its calls for a rethink of the NVES targets today, no matter which party wins power.
“The FCAI continues its long run support for an ambitious and achievable efficiency standard,” said FCAI chief executive Tony Weber in a press release to CarExpert.
“Nevertheless, the electrical vehicle (EV) transition will not be progressing at a pace more likely to meet the long-term targets under the present NVES.
“After the election, the brand new government should consider the impact of the NVES on Australian businesses and families and review the targets, timing and penalties.
“While the availability of EVs is increasing, now with 89 models available in Australia supplied by 37 brands, the demand for EVs is weak. The early adopters have acted but the remainder of the vehicle-buying public will not be following.
“EVs represented 6.2 per cent of total sales reported within the 12 months to March in comparison with 8.4 per cent in the identical period last 12 months.”
Nevertheless, the Electric Vehicle Council (EVC) – the most important representative body for each EVs and plug-in hybrid vehicles (PHEVs) locally – took aim on the Opposition, criticising it for discouraging the sale of more fuel-efficient, lower-emissions vehicles.
“The NVES doesn’t work without the credit and penalty system. Removing fines from the NVES is like having road rules without enforcement – no consequences for breaking the foundations and no motivation to follow them,” EVC CEO Julie Delvecchio said in a media statement.
“The NVES is sweet for hundreds of thousands of Australians – especially for those living within the outer suburbs and regions. From petrol and diesel cars through to EVs, the NVES means lower costs on the servo, more selection and competition in cheaper-to-run vehicles, and cleaner air in our suburbs.
“Australians are voting with their feet by stepping into more fuel-efficient cars which save them money, especially EVs which slash costs for Australians by as much as $3000 yearly.
“All Australians profit from the NVES, however the ones who profit most are those living within the outer suburbs who commute longer distances and want to lower your expenses.
“The NVES has only just began – we cannot afford to do a U-turn on this important policy that is ready to avoid wasting Australians $114 billion in fuel and maintenance savings and health advantages.
“Scrapping fines takes us back to the bad old days we left firmly within the rear-view mirror where Australia, alongside Russia, was a dumping ground for the world’s unwanted, fuel-guzzling, inefficient cars.
“Weakening the NVES will hurt hundreds of thousands of motorists while benefiting petrol corporations in addition to some manufacturers who wish to proceed selling costly cars which might be bad for our health and our wallets.”
EV maker Polestar went one step further, calling NVES the “bare minimum” and adding that the removal of penalties only “creates policy theatre”.
“The proposed Coalition policy isn’t about protecting Australian families from a “tax”. It’s about protecting carmakers which have been slow to maneuver on efficient or electric vehicles from fines,” said head of Polestar Australia, Scott Maynard.
“The NVES isn’t radical. It’s the bare minimum Australia must meet up with global standards which have existed for years in almost every other developed country.
“Without proper penalties in place to implement these standards, we’ll remain behind the curve.
“Removing financial penalties creates policy theatre, not substance. Standards without accountability aren’t standards, they’re suggestions that may easily be shrugged aside.
“Guidelines won’t drive the innovation and market transformation Australia desperately needs. Previous attempts at a voluntary standard are proof.”
This Article First Appeared At www.carexpert.com.au
