Consultation coming on fuel efficiency standards

Fuel efficiency standards could see more efficient cars on Australian roads and increased consumer choice.

We will be consulting on whether fuel efficiency standards could help improve the supply of electric vehicles into the Australian market. Consultation will also look to how to best to design any fuel efficiency standards in Australia to meet industry and consumer needs now and into the future. The Government is planning to issue a discussion paper by the end of the 2022.

Fuel efficiency standards set an average emissions target for vehicle manufacturers, or local distributors, measured in grams of CO2 released per kilometre and averaged across the vehicles they sell.

This would mean new petrol and diesel cars would be likely to use less fuel, saving Australian commuters more at the bowser and make it easier and cheaper to access popular electric vehicle (EV) models.

Fuel efficiency standards could help to:

  • reduce transport emissions
  • increase availability of electric and fuel-efficient vehicle models, by providing incentives to bring more efficient vehicles and EVs to the Australian market
  • save motorists money at the petrol pump

Of cars sold globally, over 80% are already covered by such standards. In other countries, manufacturers that sell heavier vehicles like utes and 4WDs would have a higher emissions target than light vehicles, so consumers can still access the vehicles they love. If you would like to have your say on fuel efficiency standards in Australia we will be consulting with industry, climate groups, community, and other stakeholders soon.

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