Greens say price tag for emissions support is gas veto
The Greens are vowing to back sight unseen Chris Bowen’s vehicle emissions reforms but only if Labor ditches laws to fast-track offshore gas approvals.
Mar 13, 2024 – 5.00amListen to this article5 minThe Greens are promising to pass Labor’s looming vehicle emissions reforms sight unseen so long as the government ditches proposed laws that would fast-track gas project approvals including Santos’ Barossa field off the Northern Territory.
Greens leader Adam Bandt made the offer in a letter to Prime Minister Anthony Albanese and Climate Change Minister Chris Bowen on Tuesday, saying the carbon-reduction benefits of the vehicle reforms would be more than extinguished by allowing Barossa to go ahead.
The challenge comes as the nation’s peak motoring body joins calls for the government to temper its changes, with fresh analysis raising questions about whether New Vehicle Emissions Standard (NVES) would achieve Labor’s emissions reduction goals.
Adam Bandt, pictured in question time last year with Anthony Albanese. He says, “Labor approving just one new big gas mine would wipe out all the climate gains from its electric vehicle plan.” Alex EllinghausenJim Chalmers and Woodside chief executive Meg O’Neill
Treasurer this week urged the Coalition to swiftly pass legislation for a $2.4 billion increase in the Petroleum Resources Rent Tax (PRRT) a
fter Labor said it met Peter Dutton’s demands last year to streamline environmental approvals. This includes new powers for Resources Minister Madeleine King over offshore gas projects.
“If the prime minister stops the resource minister’s power grab to fast-track new gas mines, the Greens will pass Labor’s electric vehicle standards without amendment, even though we’d like to see them go much further,” Mr Bandt said.
Advertisement“Labor approving just one new big gas mine would wipe out all the climate gains from its electric vehicle plan, the equivalent of ripping solar panels off four million Australian roofs.”
Changes to regulations would spur supply of electric vehicles and eliminate 369 million tonnes of CO₂ by 2050, Mr Bandt said. By comparison, Barossa would release 380 million tonnes if approved.
AAA critical
In a submission to the government, the Australian Automobile Association said it supported an NVES but agreed with other experts and motoring bodies that the sharp reduction in emissions over a short timeframe would be impossible to achieve without either driving up prices or forcing models from the manufacturer before affordable or equally capable low emissions alternatives were available.
An analysis for the AAA shows reaching the government’s targets would require 45 per cent of passenger car buyers and 50 per cent of ute drivers to buy an EV in 2029.
Earlier work by consultancy CIE, based on a survey of buyers, found Australians place a higher value on attributes such as vehicle range, recharging times and towing capacity, with each factor affecting “willingness to pay”.
AdvertisementThe CIE’s findings, which are included in the AAA submission, suggests there will need to be “significant” price differentials – estimated in the tens of thousands of dollars – between EVs and internal combustion engine options to motivate consumers to switch to EVs in the numbers needed to meet Labor’s targets.
“Regulation to modernise Australia’s vehicle fleet would benefit some consumers and impose costs on others, and the government must be more open about both sides of this equation if it is to garner community support and reduce political division,” said AAA chief executive Michael Bradley.
“The AAA encourages both sides of politics to work towards implementing an efficiency standard that is both ambitious and achievable.”
The association is critical of claims by the government that the Labor proposal would align Australia with US policy, pointing to several significant differences.
These include exempting from the standards utes and other light commercial vehicles that weigh over 3.8 tonnes, “whereas the government’s preferred standard has an upper mass limit of 4.5 tonnes for light commercial vehicles and hence would include vehicles in the Australian standard that are not included in the US standard”.
“The Gross Vehicle Weight Rating of some of the Ford pickup trucks means that they are not subject to the US standard and 40 per cent of all Ford pickups and 45 per cent of Ford F-series pickups are not subject to the US standard,” it said.
AdvertisementThe Australian version categorises heavy four-wheel-drives and SUVs as passenger vehicles, even though some share the same engine and drive train as the ute made by the same marque.
The US system provides for pooling, super credits, off-cycle credits and air conditioning credits, making it easier for vehicle manufacturers to meet the specified headline targets, whereas the Australian model does not.
Sharper reduction
Another bugbear is the proposal for the industry to drop emissions by more than 60 per cent in just five years.
“The US headline targets have been a steady reduction in emissions since 2016, whereas the government’s preferred standard has a much sharper reduction over a short timeframe, from 2025 to 2029,” it said.
“The US has not locked in its headline targets beyond 2026 and recent media reports suggest that the proposed US targets beyond 2026 are being reconsidered by the Biden administration, whereas the government’s preferred standard has targets out to 2029.
AdvertisementUnder the policy, which begins on January 1, manufacturers will have to ensure their entire fleet of new vehicles meets an annual emissions cap. There will be one cap for smaller cars and another for light commercial vehicles (LCVs), such as utes. The caps will be lowered each year until 2029.
Manufacturers can offset the emissions of their dirtier cars, such as diesel utes, by selling more electric and low-emission vehicles, or buying credits from those who beat the cap, such as EV maker Tesla.
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Jacob Greber writes about politics, economics and business from Canberra. He has been a Washington correspondent and economics correspondent. Connect with Jacob on Twitter. Email Jacob at jgreber@copyright linkPhillip Coorey is the political editor based in Canberra. He is a two-time winner of the Paul Lyneham award for press gallery excellence. Connect with Phillip on Facebook and Twitter. Email Phillip at pcoorey@copyright linkREAD MORE AND FOLLOW TOPICS
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