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Australia's EV industry backs Bowen's 'practical' fuel efficiency rules

After months of silence, the government finally released details of its upcoming fuel efficiency policy, which brings Australia into line with the US, but still behind Europe.

Fuel efficiency standards are designed to encourage carmakers to import more EVs into Australia. Adobe Stock.

Electric vehicle advocates have backed the Albanese government's introduction of new fuel efficiency standards as a sensible step that brings the country in line with the US but falls short of a more ambitious European style trajectory.

Faced with three scenarios for the speed at which the emissions intensity of passenger cars could fall, the government picked the middle of the road “Plan B” option. This will see the emissions intensity of cars fall 58% from the current 141 gram of CO2 per kilometre to 58gCO2/km.

In doing so, the government stared down automakers, who lobbied for a more gradual 35% reduction over the same period, but fell short of clean energy groups’ pleas for a more aggressive 77% reduction that would more rapidly bring Australia into line with the EU.

Electric Vehicle Council CEO Beyhad Jafari said bringing Australia in line with the US was “a more appropriate policy” and expects carmakers to import more EVs as well as more efficient petrol cars. He also pointed out that the Australian scheme will not allow carmakers to earn credits for using particular technologies such as cleaner air conditioning, as is permitted in some overseas markets.