Image: AmazingEV
The Australian federal government says the response to its proposed fuel efficiency standards has been one of overwhelming support, and it is has pledged to release its preferred model before the end of the year.
Australia remains – along with Russia – the only western economy without fuel efficiency standards, which has allowed low quality fuel, inefficient engines, high running costs and serious health impacts from the running of petrol and diesel cars.
Labor has already promised to introduce a fuel efficiency standard – as the federal Coalition had done in government before wilting in the face of “carbon tax on wheels” headlines in the Murdoch media – but sought an extra six months to consult on the speed and scale of the new standards.
In a joint release on Friday, climate change and energy minister Chris Bowen and transport minister Catherine King said the more than 1,200 submissions showed overwhelming support for the standard, which will only apply to new vehicles sold in Australia.
“The FES will save Australians money, unlock greater choice of modern, safer cars, and help us achieve our critical emissions reduction target of 43 per cent below 2005 levels,” they said in a statement.
“We are already seeing the price of electric vehicles drop as domestic competition and demand increases,” noting that three new electric SUVs have hit the market with a price of less than $40,000, before on road costs.
That’s important because the main legacy car lobby, the Federated Chamber of Automotive Industries, which is seeking a relatively weak FES, based its arguments on a prediction that electric SUVs would not fall to prices of around $40,000 until about 2030.
Three months after its submission, dated in March, three vehicles – the BYD Dolphin, the GWM Ora and the MG4 – are already available to order in Australia at those prices. In many ways that underlines the fact that the legacy car industry simply doesn’t understand what is happening around it, and the pace of change and technology in EVs, battery and charging facilities.
“The response to our FES consultation reinforces overwhelming support for the Government’s position: Australia needs fuel efficiency standards that make us competitive with other parts of the world for cleaner, cheaper-to-run cars,” Bowen said in the statement.
Tesla, the US company that dominates the Australian EV market with more than 60 per cent of electric car sales, and whose Model Y was the best selling passenger car of any type in June, says fossil fuel cars are killing 11,105 Australians each year through their exhaust emissions.
It is calling for tough targets equivalent to those in Europe, where most of its competitors now send the bulk of their EVs to comply with strict standards.
“Carmakers will prioritise sending their most efficient vehicles to markets with the strongest standards and penalties,” the Tesla submission says.
“Bonus and multiplier credits risk creating loopholes that fundamentally undermine the efficacy of a FES and should be avoided. If utilised, any bonus credits should be carefully calibrated, with caps and phase-outs built in from the outset.
“To ensure transparency and public trust, it is critical that government collect and publish granular data on vehicle emissions, including a transparent account of actual emissions before any bonus credits are applied.” It says the standards should be consistent with a 1.5°C target.
US car giant Ford, which is only now introducing its first electric passenger car – the Mach-e electric Mustang – is recommending the government only aim for “Euro 6” standards which were introduced into the EU in 2014, nearly a decade ago.
Its submission reveals just how far behind some major car makers have fallen. It says it will take time to find ready replacements for the Ford Ranger ute, and the Ford Everest SUV (the chosen vehicle of former energy minister Angus Taylor, who did not like EVs). Ford’s real fear is that other electric car makers will develop alternatives before they do.
The Japanese Automobile Manufacturers’ Association, which includes the likes of Toyota, Mazda, Honda and others, urges a “slow start” and a maximum use of credits – the loopholes that Tesla rejects.
EV maker Polestar also rejected the “slow start” option.
“Allowing the Australian automotive industry to have a ‘slow start’ to the introduction of a FES … risks Australia remaining a dumping ground for high-emission vehicles – and for longer,” it wrote.
“This would do little for Australia’s emissions profile to 2030 but would enable global manufacturers to meet global sales targets with cheaper vehicles.”
Giles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Grid web sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.
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