The federal government has released its first electric vehicle strategy, which includes the introduction of a Fuel Efficiency Standard.

Fuel efficiency standards are standards which outline how much pollution – or specifically, carbon dioxide – a car will produce when it’s running.

The absence of a standard has meant Australians households and businesses are missing out on greater choice of car models and paying more in fuel costs to run their cars because manufacturers prioritise sending more efficient vehicles to countries with standards in place.

Chris Bowen, Minister for Climate Change and Energy, said the strategy delivers on the government’s commitment to provide greater choice for Australians to drive cars that are cleaner and cheaper to run.

“This strategy provides the coordination and leadership to drive down costs and improve infrastructure so that we get more affordable and accessible electric vehicles on the market.”

Catherine King, Minister for Infrastructure, Transport, Regional Development and Local Government, said more than 85 per cent of cars sold in the world are subject to fuel efficiency standards and it is time Australians were offered the same choice.

“This strategy offers an historic opportunity to develop fuel efficiency standards that learn from international best practice, while recognising the unique needs of Australians.

“It will send a strong message to the global car industry that when it comes to transport technology, Australia will no longer settle for less.”

With transport being the third largest source of emissions in Australia, this strategy is expected to cut emissions by at least three million tonnes of carbon by 2030.

In terms of EV sales, Australia still lags far behind other countries, with uptake of EVs around four times lower than the global average.

The strategy also looks at reducing barriers to electric vehicle uptake, whether it be demand, supply or infrastructure, which is the critical planning that consumers have been crying out for.

“A long road ahead” says Electric Vehicle Council

The Electric Vehicle Council has welcomed Australia’s first National Electric Vehicle Strategy but warns the government must act swiftly and boldly to calibrate and enforce Australia’s fuel efficiency standard.

Electric Vehicle Council CEO Behyad Jafari there’s a long road ahead for Australia to catch up with the rest of the world on electric vehicle policy, but this strategy can accelerate progress.

“It’s a relief that an Australian government has finally committed to fuel efficiency standards, which have been operational in the US and Europe for decades. But with those jurisdictions now leaping forward in terms of ambition Australia must bring in strong standards that keep pace with the modern world. If we squib it on the detail Australia will remain the world’s dumping ground for dated, high-emission vehicles.

“Australia is lagging behind as one of the last developed countries without any fuel efficiency standards. From the US to Europe and across the ditch in New Zealand, strong fuel efficiency standards are providing drivers with more EV choice and reducing harmful emissions.

“Having fuel efficiency standards in Australia in line with global markets will save motorists hundreds of dollars on fuel each year and give them more affordable electric vehicles to choose from.

“If Australia is serious about developing a local EV value chain to secure our future prosperity, the first crucial step to secure investment is to demonstrate we have a strong local market for these products. This will only be possible through the introduction of a globally-competitive fuel efficiency standard that accelerates local adoption.

“We will be working closely with the government as it designs a fuel efficiency standard for passenger and light commercial vehicles. Australia has a bright and clean electric future just around the corner, but only if we get the policy settings right today.”

Following the consultation, the government will release its proposed Fuel Efficiency Standard by the end of 2023.

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