Don’t stall now: Strong fuel standards must be at centre of national EV strategy

Australia has finally been given the greenlight on a national electric vehicle strategy. Submissions are
in – over 400 of them – and after a decade of inaction, the final strategy has the potential to reshape
and modernise Australia’s transport system. If we get it right.

Getting it right means implementing strong, robust fuel efficiency standards without loopholes or
lengthy phase-in periods. These standards, called for in an overwhelming number of submissions,
would require vehicle manufacturers to limit average emissions across their vehicle fleet – reducing
carbon emissions and fuel costs and getting more electric models into the Australian market.

Getting it right also means setting a date for the phase out of fossil fuelled vehicles, electrifying our
bikes and public transport, and removing perverse tax breaks that encourage the purchase of utes,
the increased uptake of which is counteracting the emissions benefits from electric vehicle sales.

The National Electric Vehicle Strategy’s journey to fruition has been a long one. Initially recommended during the 2018 Senate inquiry into electric vehicles, progress towards a final policy was slowed by a chicane of delays, misinformation campaigns and misleading modelling under the Morrison Government.

In 2022, the Albanese Government was quick off the mark, announcing a National Electric Vehicle
Strategy and opening the door to fuel efficiency standards at the landmark National Electric Vehicle
Summit, organised by the Smart Energy Council, Electric Vehicle Council, The Australia Institute and
Boundless.

With a final strategy around the corner, big opportunities are in store. A successful national electric vehicle policy could help wean Australia off imported petrol and diesel and reduce public health costs.

By steering Australia away from the ‘dig and ship’ mentality of the past towards a ‘mine and
make’ future, a strong national electric vehicle policy could help the nation capture more value from
the minerals it exports, boosting regional jobs and reinvigorating local vehicle manufacturing. Not to
mention tackling climate change.

A transition from fossil fuelled transport is desperately needed. As the latest emissions projections report highlights, our transport sector is letting us down, risking us missing our 2030 emissions
reduction target. A fifth of Australia’s emissions come from transport (the bulk from cars), transport
emissions are rising and there is no federal transport-related policy to curb them.

After a strong start, the Albanese Government now seems to be stalling. Since first announcing that
fuel efficiency standards would be considered as part of the strategy, things have gone suspiciously
quiet, leaving some questioning whether the final Electric Vehicle Strategy will include strong
enough standards.

The benefits of electric vehicles cannot be realised in Australia if we don’t have access to those
vehicles. Strong fuel efficiency standards would encourage car brands to bring their electric models
here. Fuel efficiency standards must form the backbone of our Electric Vehicle Strategy, so we can
get on with the more difficult tasks, like decarbonising heavy transport, installing charging
infrastructure in apartments and remote areas, and vastly increasing the uptake of active and public
transport.

The fossil fuel vehicle industry has previously pushed back against the introduction of standards in
other car markets and are now attempting to undermine and weaken Australia’s forthcoming
standards. But these speedbumps must not distract us from getting the job done. Australia sits with
Russia as the two OECD nations yet to implement fuel efficiency standards.

Meanwhile the rest of the world is getting on with the task of decarbonising transport. Last week,
the European Parliament passed a law effectively banning the sale of fossil fuel cars from 2035 and
are now looking to introduce heavy vehicle laws that would phase out fossil fuel bus sales in cities by
2030.

The United States, through the Inflation Reduction Act, is strategically speeding up their
transition to smart energy and transport through substantial funding, programs and incentives, and
standardising electric vehicle charging infrastructure to bolster public trust in national charging
networks. Cities around the world, from Bogota to Mumbai to Nairobi are electrifying their bus
fleets.

Australia has been stopped at the red light too long to stall now. We must go full throttle and
introduce the long-awaited National Electric Vehicle Strategy complete with strong fuel efficiency
standards.

Audrey Quicke is head of transport policy at the Smart Energy Council.