Feds announce emissions action at EV summit

AS PART of an electric vehicle (EV) summit held last week in Canberra, federal climate change minister Chris Bowen outlined a commitment that Australians will have greater EV choice from a federal government push to encourage their uptake.

 

The announcement, coming at a time of intense debate around how Australia shifts toward electrification and the role of fuel-efficiency standards in this transition, has prompted a spectrum of automotive industry groups to weigh in with positivity about the prospect of legislative certainty and the opportunity to shape such legislation through the promised consultation process.

 

Australian uptake of zero- and low-emission vehicles is currently constrained, among other issues, by a combination of high prices, limited stock and long waitlists for a range of models that is much smaller than available overseas.

 

Speaking last Friday at the inaugural National Electric Vehicle Summit, Mr Bowen announced a new national plan that will help change this situation for the better to a diverse audience of politicians, automotive industry representatives and community leaders, including US ambassador Caroline Kennedy and EU ambassador Michael Pulch.

 

“Growing Australia’s electric vehicle market and improving fuel efficiency standards will be the focus of a national strategy to be developed with state and territory leaders,” he told the summit.

 

“Uptake of new low-emissions vehicles sits at just two per cent, nearly five times lower than the global average,” Mr Bowen said.

 

He acknowledged in his address that Australia is significantly behind when it comes to the uptake of low-emissions cars, with just eight options on the market under $60,000.

 

“There are many consumers who would be interested in buying an EV but even if they could access the limited stock available, price sends them to petrol or diesel models,” he said.

 

“Policy settings are denying Australians real choice of good, affordable, no emissions cars.”

 

Mr Bowen added that the federal government’s strategy will also include steps to improve national fuel efficiency standards which, he said, would help drive down the cost of electric vehicles.

 

“Australia is the only OECD country apart from Russia not to have, or be in the process of developing, fuel efficiency standards,” he said.

 

“As the world moves towards more efficient and cleaner vehicles, Australia risks becoming even more of a dumping ground for old technology which can’t be sold in other markets.”

 

Industry consultation will commence in September, Mr Bowen said.

 

Co-founder of the EV summit, Atlassian CEO and environmental advocate Mike Cannon-Brookes, said the plan was welcomed by industry and described it as “a refreshing step that needed to be followed up to catch up with the rest of the world”.

 

Mr Bowen said estimates suggested Australia is currently about a decade behind Europe in electric vehicle policy and uptake.

 

Speaking for a group of climate-focused federal crossbenchers, North Sydney MP Kylea Tink called for the government to “prioritise the take-up of environmentally friendly cars”.

 

“To facilitate that, we plan to bring a proposal to the next parliamentary sitting week in September which would legislate binding fuel efficiency standards within the next two years.”

 

In response, Mr Bowen said; “Timelines for legislating standards will be worked through as part of public consultation.”

 

Other politicians are lobbying for a change to the definition of fuel-efficient vehicles in Luxury Car Tax laws, which could make electric cars more competitive while increasing revenue by more than $410 million in three years.

 

The Greens said it would call on the government to urgently invest in charging infrastructure and discounts on electric vehicles.

 

A proposal has already been submitted to parliament to change fringe benefits tax laws and remove the import tariff on electric vehicles to make them more affordable.

 

Mr Cannon-Brookes called for speed in implementation of new standards that arise from the legislation.

 

“Our standards cannot be a step forward from where we are today; they have to be a leap to catch up to where the rest of the world is,” he said.

 

“The problem is right now that we are far behind the rest of the world. Whatever we get to can’t then continue to be far behind the rest of the world. We have to make that leap to catch up to where they are.”

 

The Federal Chamber of Automotive Industries (FCAI) issued a statement throwing its support behind Chris Bowen and the federal government’s intention to build a detailed strategy to reduce vehicle emissions and increase zero- and low-emission vehicle options for Australians.

 

“This is the kind of courageous intent we have been seeking from our federal government and it is a major step on our journey to delivering low-emission vehicles to Australian customers,” said FCAI chief executive Tony Weber.

 

“We have publicly advocated for a government mandated CO2 target for many years. This is a good day.”

 

The direction is consistent with an approach outlined by the FCAI on 24 July 2020 when it stated: ‘”The FCAI strongly supports a comprehensive approach to addressing motor vehicle emissions that includes fuel quality standards, the introduction of Euro 6 and the introduction of a challenging but realistic, achievable and market relevant CO2 standard.”

 

“The nationally led cooperative approach, supported by state and territory governments and relevant stakeholders, will help to build a comprehensive strategy that includes the complexities of vehicles, infrastructure, taxation, and incentives that are critical to achieving our climate change ambitions,” the FCAI said.

 

The Australian Automotive Dealer Association echoed the FCAI’s sentiment regarding Chris Bowen’s commitments saying: “The AADA welcomes the announcement by the federal government that it will consult on the establishment of a national electric vehicle strategy.”

 

“We look forward to contributing to the consultation process on behalf of Australia’s more than 3,100 new car dealerships and their 59,000 employees,” said AADA CEO James Voortman.

 

“New car dealers support action on lowering vehicle emissions, and consultation with industry is an encouraging sign that Australia will have a fit-for-purpose, nationally led, electric vehicle strategy,” he said.

 

“Australia is a very small right-hand drive vehicle market in global terms, and it is situated at the end of a long and complex supply chain. Australia’s vehicle emissions standard needs to be realistic, achievable, and should not unduly punish consumers or motorists who cannot afford the transition,” he said. 

 

Tesla chair Robyn Denholm also said consultation with industry was “key for Australia to move forward with EV adoption overall”, describing Mr Bowen’s announcement as “great progress” and “a great step forward”.

 

“Bring on September so that we can all have the submissions and hopefully a resolution for a national approach with state (and) local governments and industry participating,” she said.

 

Similarly, the Australian Automotive Aftermarket Association (AAAA) was welcoming of the consultation, the organisation’s CEO Stuart Charity congratulating Mr Bowen for “this positive announcement that will ensure the automotive industry, and ultimately consumers, are supported through this important transitional phase”.

 

“The AAAA looks forward to an ongoing dialogue with government on behalf of the aftermarket industry on what is a critical matter for Australia to get right,” he said.

 

Mr Charity called for hydrogen and “sustainably fuelled efficient internal combustion vehicles” to not be forgotten as “part of the solution”.

 

““The aftermarket industry has an important role to play in this strategy. Independent workshops and technicians will be at the forefront of servicing and repairing Zero and Low Emissions Vehicles (ZLEV),” he said.

 

“The forthcoming ZLEV transition will also yield growth and new business opportunities in the aftermarket industry. Consultation will ensure business is heard, informed and ready to capitalise on this industry evolution.”

 

The Australian Automobile Association (AAA) representing Australia’s state-based motoring clubs and their 8.7 million members took a more measured approach, calling for “balance” in the vehicle transition.

 

It is, however, supportive of exploring how a light-vehicle fuel efficiency standard can incentivise the supply of cleaner cars to our market.

 

“The AAA has long advocated for such a mechanism and looks forward to helping the Government design an Australian-specific scheme that appropriately balances ambition, achievability, and costs to the consumer,”AAA says in a statement.

 

“As Australia’s leading motoring consumer advocate, the AAA and its member clubs will be focussed on ensuring possible vehicle cost and choice impacts are fully considered as part of the upcoming process,” the organisation says.

 

As with the AAAA, the AAA will discourage the government from focusing on a single technology, highlighting that Australia’s emission reduction targets will likely require increased supply of vehicles using a range of fuels and technologies.

 

AAA managing director Michael Bradley, said: “Electric vehicles will undoubtedly be part of the solution however a technology agnostic approach will ensure Australian motorists also benefit from access to ever-improving hybrid and internal combustion engines.”

 

Mr Bradley echoed comments by Mr Voortman about constraints around Australia’s access to emerging technologies. Among the factors he cited were “our unique fuel quality, traditional vehicle preferences, and the fact we’re a relatively small right-hand-drive market”.

 

“The AAA is pleased to see the federal government considering a market-based mechanism, such as a fuel efficiency standard, to incentivise global car companies to prioritise Australia.

 

“Such an approach will boost supply of cleaner cars to our market more effectively, and at a lower cost to consumers, than the subsidies and other government assistance schemes sometimes called for.” 

 

Volkswagen Group Australia managing director Paul Sansom welcomed Mr Bowen’s proposal to impose CO2 emissions rules on new car sales.

 

Mr Sansom reminded the summit that his company was “first to warn that this country would become a 'third world dumping ground' for obsolete auto technology”. 

 

“This has become a rallying cry," he added.