Industry bodies respond to the announcement of fuel efficiency standards, and next steps for boosting the uptake of electric vehicles in Australia.
The electric vehicle (EV) industry has been given a much-needed boost.
The Australian government’s announcement of national fuel efficiency standards is designed to ensure that manufacturers guarantee new vehicles sold in this country meet certain efficiency benchmarks.
The government says those benchmarks, which it is terming ‘new vehicle efficiency standards’, will save consumers $1000 a year in fuel costs by 2028 and $17,000 across the life of a vehicle. It also estimates a carbon emissions reduction of 369 million t.
Industry bodies such as the Electric Vehicle Council have welcomed the policy.
“Australia has always been at the back of the queue when it comes to the best and cheapest electric vehicles, because car makers have been incentivised to offer them elsewhere first,” said Electric Vehicle Council CEO Behyad Jafari. “That should end now with this policy, and Australian car buyers should notice the change very quickly.
“By bringing Australia into line with the US and Europe, car manufacturers will now be incentivised to offer Australians their best zero and low emission vehicles. Motorists will still have the choice to buy what they want, but they will be offered much better options to choose from.”
The standards represent not only an economic boon for motorists but also a clear step towards promoting cleaner energy transport options.
According to a mid-2023 report by the Electric Vehicle Council, 8.5 per cent of all new vehicles sold in Australia are electric, up from just 3.8 per cent in 2022.
But compared to countries such as Denmark, Germany and Norway, Australia has a way to go.
The graph below shows the EV market share by country in 2022 and 2023, with Australia behind the global average.
Jafari explained that Australia has been treated as a “dumping ground” for car manufacturers’ least efficient models, an issue the new standards should help to fix.
“Right now Australia is one of only two developed countries without new vehicle efficiency standards,” he said. “Very soon, Russia should be on its own.”
Benefit for all Australians
Engineers Australia also welcomes the policy announcement, flagging it as an essential step towards an emissions-light future.
“This is a very important announcement,” Engineers Australia Senior Policy Advisor Grant Watt told create. “The standards will be a positive step towards prioritising emissions reduction, relieving cost-of-living pressures and improving air quality.
“They will bring Australia into line with other countries in terms of getting access to the best-quality EVs. This should benefit all Australians.”
At the same time, Watt suggested that the standards could have been more ambitious.
In Engineers Australia’s Fuel Efficiency Standard submission, released in May 2023, it was recommended that Australia’s carbon dioxide target should align with that of the European Union — 95 g of carbon dioxide per km for cars in 2024, and aiming for zero emissions by 2035 at the latest.
“The government has opted for comparison with the US standard, which falls short of the EU standard,” Watt explained.
“The government has opted for 141 g of carbon dioxide per km in 2025. Under the most ambitious option it presented, the proposed penalty for not meeting the standard is A$90 per g of carbon dioxide over the limit. In the EU, the penalty is €95 per g of carbon dioxide, or A$157.”
However, Watt explained that, regardless of where the standard starts, the important point is to get a standard in place that lowers over time in line with Australia’s decarbonisation goals.
The fact that the standards are compulsory for new passenger vehicles and light commercial vehicles is promising, with the government supporting the Worldwide Harmonised Light Vehicle Test Procedure, which formed one of Engineers Australia’s recommendations.
“Engineers Australia says the government can be both ambitious and sensible — and one way to do that is to bring forward the starting date currently set for 1 January 2025,” Watt said.
Next steps to boost EV uptake
Fuel efficiency standards may now see the light of day, delighting many EV owners, enthusiasts and supporters — but Australia has not yet reached the end of the road to broader uptake.
Here are the three key areas of focus in the ongoing transition to EVs:
- Charger availability. This is the big one. There could be a million more EVs on the road, but without a more comprehensive charging network for users, the abundance of vehicles is rendered useless. “The standards need to be accompanied by investment in charging infrastructure, which is particularly important for people who do not have off-street parking,” Watt said.
- Grid integration. Equally, it’s no use building up one part of the energy network only to neglect how it integrates with others.
- Nationwide regulation. The Electric Vehicle Council encourages regulators and state governments to ensure nationwide cooperation when recommending requirements for charging equipment installation. “We do not need individual states going it alone,” states the report.
Getting more EVs on the road supports a cleaner and more efficient future. Experience new ways to change the world at a World Engineering Day networking event in a city near you.
Great job Lachlan. Well rounded article.
Hi. Tesla uses about 80kWhrs for 500k. That is 150kg of coal burnt at the power station.
Good point
This is a welcome move, it is a fact that the more efficient vehicles suited to long distance driving are plug-in hybrids, where the IC engine is only used when a long distance trip (ie. greater than 80 km) is undertaken. And there are very few plug-in hybrids available in Australia. This policy will hopefully make them more available.
The graph in the article (EV Market Share by Country) shows that Germany’s EV market share has dropped substantially from 2022 to 2023. Do the Germans know something that everybody else doesn’t??
Hi,
Its a pity that this report parrots the Govts claimed savings of $1000 pa and $17,000 over the life of the vehicle without any critical examination of these claims. To date the Govt has not released any modelling of their claims for scrutiny eg. What mileage and comparative petrol vs. electric fuel costs are these claims based on? Country or city driving?
The report also fails to mention that EV’s are significantly more expensive to purchase than equivalent ICE vehicles.
Any penalty imposed on car manufacturers will simply be passed onto the consumer.
For the above reasons, the statement that this will help with cost of living pressures is frankly laughable.
Comparing Australia’s EV market share with European countries such as Norway, Sweden etc. is meaningless. They are totally different scenarios due to many factors such as travel distances, usage of vehicles, population etc. and therefore cannot be compared on an equal basis.
I have one question and one comment on the Fuel Efficiency legislation.
I recently bought a new European car which tells me it emits 140g/km which is well above what apparently the same car emits in Europe under their legislation. If 95g/km is $1,000pa cheaper in fuel, why isn’t it installed now for importing to Australia as a marketing selling point? Or is the reduction to 95g/km much more expensive to manufacture? In question time in Parliament today (8 February 2024), the question was asked of the PM and the environment minister, about a similar car in the UK manufactured to new CO2 reduction specifications costing $19,000 dearer than in Australia and would the Government rule out that new cars under the legislation will be dearer? Of course, if the saving is $1,000pa but the buy cost is $19,000 more, the car must last some time to break even. Unfortunately, the usual evasive reply was given which neither confirmed nor denied a significant price increase in new cars which means it is likely the former. Has EA studied this issue and if so, what is the answer?
Secondly, if the penalty of $90/g over the limit is for a fleet wide average for a manufacturer, one assumes that the manufacturer will know in advance of the total proposed sales of each type of vehicle, and therefore add the likely penalty to the sale price of the specific vehicle.
Just like to point out that this article is still aimed only at Battey electric vehicles (BEVs), No mention of Hybrid vehicles, Hydrogen combustion engines or Fuel cell Electric vehicle (FCEVs) options such as the currently available Hydrogen Fuel Cell vehicles or the recent proposed Ammonia fuel cell options.
While BEVs are the perfect solution to your daily commute, they fall short when it comes to long range driving (comparison done recently actually had petrol cars cheaper than the electric equivalent for a Melbourne to Sydney trip (using the fast charger network) – before considering the 3 hrs extra stopping time required) [https://www.carexpert.com.au/car-comparisons/900km-560-mile-electric-v-petrol-challenge-same-cars-same-driving-which-was-cheaper].
They are also frankly a useless option when it comes to load carrying capacity such as mining, agriculture, commercial transport or aviation as the weight of the batteries almost exceeds their carrying capacity, effectively doubling the wear on road infrastructure to move the same quantity of goods. Added to the fact that downtime in these industries is more costly than the running cost savings.
Regardless of the “breakthrough battery density” that is forever talked about but never eventuates, BEVs will never match FCEVs or ICEs for weight efficiency (Short of a nuclear generator in every car).
There is a reason battery electric submarines never really caught on.
Essentially, BEVs only solve half the problem and will still require an alternative option for commercial industry. Even at a household level, they still leave many families requiring multiple vehicles to meet their relevant needs.
They are more power efficient compared to other options, but time and weight efficiencies are more important in the long run.
Why focus on extending battery charging stations only while neglecting fuel cell refuelling infrastructure when at the end of the day, these fuel cell stations will be the likely successor to diesel powertrains for long distance haulage? They could be put in place now and would benefit the uptake of more FCEVs in the short term.
When it comes to using the fast charger network, its already been proven that BEVs aren’t as cheap as they are made out to be.
The expected lifespan of hydrogen combustion and FCEVs is also greater than that of a BEV as the battery lifespan of BEVs severely impacts their value as a second hand market which is where the greatest improvement to environmental benefits can be achieved. Better to have a car that can be useful for 30 years before it is scrapped, than 10 years for a BEV (Assuming it doesn’t catch fire first or get a scratch on the battery pack – Insurance write off cheaper than repair).
Who is going to risk buying a potential write off
The introduction of this fuel standard should be a push to increase the number of all alternative options, not only BEVs. In my opinion Australia should actually be pushing for the increase in fuel cell vehicles in preference to BEVs except for small commuter models, before we get to invested in a flawed solution that still needs to be amended.
This would help drive the infrastructure issues and fuel scaling costs that are the limiting factor in the uptake of these other models and would transition to a more permanent solution that allows reduced impact on existing infrastructure and better longevity.
While the options to outright purchase and use a FCEV in Australia is not at an equivalent level to BEVs, Options such as Hybrid vehicles are currently available and in many situations will be a more suitable option for many people. In addition, any comments regarding the way forward should include ALL options rather than only those regarding one solution.
I believe articles such as these should have a broader range than simply appearing as BEV marketing.
Please clearly label this article as an opinion piece as the bias in favour of these restrictions is extreme. You have continually stated that this is benefit for all Australians when this, by definition, is only banning vehicles Australians would have otherwise wanted to purchase. It is a push to force EVs on consumers by outright banning alternatives.
This article does not belong in an Engineering magazine. There is no engineering analysis. What is the discussion around the current emissions from the most popular vehicles in Australia? What improvements need to be made to vehicles to reach the standards? Is the technology developing fast enough? What facts has Watt based his assertion that standards “could have been more ambitious”? What affect will this have on tradies, couriers, Uber and taxis?
It is noted that EV does not mean no carbon as a portion of energy used for the EV is from burning carbon fuel ( eg coal and gas), this never seems to be at the front of people’s minds and it should be!.
Is the manufacture of the electric vehicles and then recycling (if they aren’t just piled in paddocks) taken into account. Whole of life??
I’m still driving my 20year old car and would be lucky to use $1,000 a year in petrol, not sure how buying a new EV is helping anything in many cases. Mining of the minerals for batteries plays no part in the discussion it seems?
Caught a Tesla limo in Adelaide recently. Chatting with the driver regarding operational issues and his comment was when he has a really busy day he may have to recharge up to three times. At an hour a recharge he loses three hours of hire. The higher petrol price, if he had a ICE, offsets the loss of hire for his BEV. He would be better off with a hybrid for heavy work
There are three options in the proposal. Option B is the government’s preferred option. Option C is superior. The time line has an initial delay that hopefully will be reduced by one year so that car importers can commence orders, which will give businesses and individual so many more vehicle options. I have a 2nd hand Nissan Leaf, charged simply by 15 amp power point. EVs do not need to be expensive but less expensive ones needed here.