Its coming Government to impose penalties for dirtycar...

Its coming

Government to impose penalties for dirtycar emissions

The Albanese government isresurrecting a contentious plan to impose carbon emissions rules on new car sales to boost electric vehicle take-up and avoid turning the country’s car yards into “dumping grounds” for redundant stock no longer able to be sold in other markets.

Ina coup for the electric vehicle industry and mostly European premiummanufacturers such as VW, BMW and Mercedes, Climate Change and Energy MinisterChris Bowen will on Friday declare that “now is the time to have an orderly andsensible discussion” about the idea.

At a function organised by the EV lobby in Canberra on Friday, which will include three teal independents, billionaire Mike Cannon-Brookes, and the head of VW Australia, Mr Bowen will argue that introducing penalties on the sale of traditional internal combustion engines will “address the cost-of-living impacts of inefficient cars”.

Labor will “shortly” release a discussion paper for consultation on a national electric vehicle strategy aimed at expanding the range of new EV models costing less than $60,000 available in Australia from eight to something closer to the UK’s market, where consumers have at least 26 options.

Mr Bowen’s move reverses Labor’s pre-election decision almost a year ago to dump the idea, which former leader Bill Shorten took to the 2019 election and the Coalition weaponised.

Formerprime minister Scott Morrison infamously claimed Labor would “end the weekend”and drive up the cost of the nation’s most popular selling vehicles.

Labornow judges that the national mood has shifted, with consumers eager for thekind of choice and range EV buyers enjoy in Europe.

“Apartfrom Russia, Australia is the only OECD country to not have, or be in theprocess of developing, fuel efficiency standards,” he will say.

Utes tobe hit hardest

Anemissions standard, which the European Union sets at 95g CO2 per km,incentivises manufacturers to produce and sell lower emissions vehicles and EVsthat fall below that threshold while driving up the cost of traditionalinternal combustion models above it.

Regulatorsnormally judge the performance of carmakers in meeting the standard accordingto the average emissions of all the vehicles they sell in a given period.

Themove risks pitting the Albanese government against groups such as the FederalChamber of Automotive Industries, which has warned that a compulsory emissionsstandard would penalise many of the carmakers that dominate Australia’s salesrankings, including large four-wheel drives like the Toyota HiLux, RAV4s andFord Rangers.

Theaverage emissions performance of Australia’s biggest-selling makers of utes areToyota, at 223g CO2 per km, followed by Ford (212) and Isuzu Ute (208).

Thefigures for the top passenger-car makers are Toyota, with 145g CO2 per km,Mazda (156), Hyundai (164) and Kia (160).

Imposingbarriers to importing petrol and diesel burners is set to become part ofLabor’s push to cut national emissions by 43 per cent this decade.

“Passengercars make up almost 10 per cent of Australia’s CO2 emissions,” Mr Bowen willsay. “Serious action on climate involves serious action on transportemissions.”

He willcite Australian Electric Vehicle Association figures that indicate motoristswould save $500 in fuel and $100 in maintenance costs every year per vehicle.By 2030, according to UBS, that could generate $1700 per car owner.

“We areexperiencing significant cost of living challenges,” Mr Bowen will say. “Andgiving Australians better access to options which allow them to never lift thenozzle on a petrol pump again is a good cost of living measure.

A ‘gamechanger’, VW says

“Naysayerspoint to the expense of electric vehicles – out of the reach of ordinaryfamilies – as a reason not to drive further uptake.

“And toan extent, they have a point. There are many consumers who would be interestedin buying an EV – but even if they could access the limited stock available,price sends them to petrol or diesel models.

“To me,this is ultimately about choice. Freedom of choice. And policy settings are denyingAustralians real choice of good, affordable, no-emissions cars.”

VolkswagenAustralia CEO Paul Sansom told The Australian Financial Review thatan emissions standard would be “a game changer in our headquarters” in Germany.

Nothaving a standard puts Australia “right in the back of the queue, we just don’tget any EV supplies”.

“I’msuper frustrated by that because at Volkswagen, we’ve got cars on sale inEurope that we know would sell today and are really in the sweet spot of whatour [Australian] consumers are looking for.”

MrSansom also hinted that the company would eventually develop EV versions ofAustralia’s biggest-selling categories – large four-door utes.

“That’sdefinitely something that’s in our design plans at the moment,” he said.

“Nothingthat I can confirm yet that is going into production, but certainly, wherethere are big markets around the world for those popular vehicles we’ll beservicing those with electric vehicles as well.”

Labor’sshift anticipates a push by three teal independents speaking at Friday’s EVsummit to boost demand for the zero-emissions vehicles.

NorthSydney MP Kylea Tink aims to introduce a private member’s bill next month thatwould “bring fuel quality standards and vehicle emissions standards into linewith international markets within two years”.

“Wemust keep up with the pace set by the Europeans on all pollutants, not justsulphur,” Ms Tink will say.

Tealspush for more incentives

“I willalso push the government to legislate binding fuel-efficiency standards to getus on a trajectory to no new fossil fuel vehicles by 2035.”

Inaddition, Kooyong MP Monique Ryan will call for changes in the October budgetto the definition of fuel-efficient vehicles under the luxury car tax byreducing tax waivers for “polluting ICE vehicles” – a move that would boost taxrevenues by $411 million over four years, according to Budget Office estimates.

“Thecurrent definition of a ‘fuel-efficient’ vehicle is outdated and gives taxconcessions to a broad range of high-end internal combustion engine vehicles.”

Dr Ryanwants to cut the definition of a fuel-efficient vehicle from 7 litres of fuelper 100km to 4 litres per 100km.

‘Charginganxiety’

Memberfor Goldstein Zoe Daniel will call for changes to the Australian RenewableEnergy Agency’s rules on funding the rollout of fast EV chargers.

“Currently,grants favour low-capacity chargers which are too slow. This frustrates EVdrivers and deters potential owners by increasing ‘charging anxiety’,” shesays.

“Thisgovernment should increase the minimum capacity requirement for grants from50kw to the industry standard of 150kw to ensure that the chargers supportedare fast enough to guarantee driver confidence and value for public money.”

TheGreens on Thursday reiterated their support for a fuel efficiency standard –starting at 105 grams per km and ratcheting down to zero by 2030, when a “banon new petrol and diesel” vehicles should take effect.