Helping Australians save on fuel and reduce greenhouse gas emissions

The global automotive industry is transitioning to low and zero-emission vehicles and it’s important we play our part and unlock access to modern vehicles that are cleaner and cheaper to run. Fuel efficiency standards aim to make vehicles on the roads more efficient, reduce transport emissions and increase the range of fuel-efficient and electric vehicle (EV) models available to buy.

In other countries, fuel efficiency standards do this by setting an average emissions target for vehicle manufacturers, or local distributors, measured in grams of CO2 released per kilometre and averaged across the fleet of new vehicles they sell per year.

Transport accounts for around 19% of Australia’s greenhouse gas emissions. Light vehicles alone contribute around 12% of Australia’s greenhouse gas emissions.

Fuel efficiency standards could help to:

  • reduce transport emissions
  • give consumers more choice
  • save motorists money at the petrol pump

What’s next?

As part of the National Electric Vehicle Strategy, we will be consulting on whether fuel efficiency standards could help improve the supply of new electric vehicles into the Australian market and lower transport emissions. This consultation will also seek input on what design features government should consider in more detail.

The consultation will seek feedback from industry, climate groups, community, and other stakeholders to ensure the Government can best design fuel efficiency standards to be:

  • Effective in reducing transport emissions
  • Equitable to ensure Australians can access the vehicles they need for work and leisure
  • Transparent and well explained to ensure unintended consequences are avoided.
  • Credible and robust by drawing on expert analysis and experience of fuel efficiency standards implemented around the world.
  • A pathway to enable vehicles with the best emissions and safety technology to be available to Australians.

What are fuel efficiency standards?

Fuel efficiency standards set an average efficiency target, typically measured in grams of CO2 per kilometre, for vehicles sold by each manufacturer. Over 80% of cars sold globally are already covered by such standards. In other countries with fuel efficiency standards, allowances are made for heavier or larger vehicles, to ensure consumers can continue to access the range of vehicles they need for work and leisure.

Introducing fuel efficiency standards would mean new petrol and diesel cars would be likely to use less fuel, saving you money on running costs. They would also encourage car manufacturers to supply fuel-efficient and electric vehicles to Australia, improving consumer choice and making it easier and cheaper to access popular electric vehicle models.

How can I have my say?

Have your say on the National Electric Vehicle Strategy.

If you would like to have your say on fuel efficiency standards in Australia, keep an eye on our website for more information or register your contact details below to receive updates.