The Australian government is under pressure to accelerate the introduction of fuel efficiency standards, as the country remains one of the few OECD nations without such regulations. Environmental groups and automotive bodies argue that these standards would provide consumers with more affordable and cleaner vehicle options amid the cost-of-living crisis.
A fuel efficiency standard would set annual emissions caps for new cars, incentivising manufacturers to supply low- and zero-emissions vehicles while penalising those that fail to comply. However, the government missed its own timeline to release a preferred model by the end of 2023, citing the complexity of designing a system suited to Australia's circumstances.
Energy Minister Chris Bowen acknowledged the work is at an advanced stage but described it as 'complicated'. Infrastructure Minister Catherine King had previously stated an exposure draft would be ready by the end of 2023, but technical issues have caused delays. A spokesperson for King emphasised the government's commitment to 'getting it right'.
The Climate Council's Dr Jennifer Rayner criticised the delays, noting that Australians are missing out on cheaper running costs and cleaner air. Polling by the group found that over half of respondents believed a fuel efficiency standard would save them money at the pump, with 49% supporting its introduction.
However, the Federal Chamber of Automotive Industries urged caution, stressing the importance of balancing ambition with practicality to avoid price hikes that could deter consumers. FCAI chief Tony Weber highlighted the need to consider the availability of low-emission options for popular vehicle types like utes and SUVs.
