FES submissions back cleaner cars

THE federal government’s consultation process for the introduction of a new Fuel Efficiency Standard (FES) has received overwhelmingly positive support, with some 1200 submissions from individuals and organisations now made public.

Most submissions support the introduction of a FES – which is expected to boost local access to cheaper-to-run vehicles that are also better for the environment – and will be used to inform an impact analysis for a model that will be released before the end of the year.

The Australian subsidiaries of major car manufacturers including Ford, Lexus, Mazda, Nissan, Polestar, Tesla and Volkswagen Group made submissions, as did their peak industry body, the Federal Chamber of Automotive Industries (FCAI).

Also represented among the submissions were the Australian Automotive Dealer Association (AADA) and Electric Vehicle Council (EVC), along with the Australian Automobile Association (AAA) and some of its member organisations including the NRMA, RAA, RACQ and RAC WA.

Federal minister for infrastructure, transport, regional development and local government, Catherine King, the FES will save Australian motorists money, unlock a greater range of safer and cleaner new cars, and help Australia to achieve an emissions reduction target of 43 per cent below 2005 levels.

“Thank you to everyone who took the time to have their say – I look forward to continuing to work across government, industry and communities to progress a FES that will make a real difference for Australia,” she said.

Ms King’s sentiments were echoed by the minister for climate change and energy, Chris Bowen.

“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,” he said.

Ford Australia – which derives the vast majority of its sales volume from the Ranger ute and related Everest large SUV – points out that bringing electrified versions of such vehicles to market at scale without compromise to their capabilities and affordability “is a challenge facing all markets as they transition to lower emitting fleets”.

“A fleet FES that incentivises the rapid deployment of the electrified passenger and commercial vehicles available today in other global markets, while recognising that technologies to deliver electrified pickups and offroad SUVs are still emerging, will be key for the successful achievement of the policy objectives of reducing greenhouse gas emissions and supplying Australian motorists with the types of vehicles they require,” said the Ford submission.

Interestingly, Ford went on to recommend the inclusion of plug-in hybrid and battery electric light commercial vehicles in the zero per cent import duty scheme for passenger vehicles with these drivetrain types.

Although no submission from Toyota was among those available to the public, its luxury division Lexus – which has committed to going 100 per cent zero tailpipe emissions by 2035 – submitted a brief document supporting the introduction of a FES, broadly aligning with the cautious FCAI position and welcoming the “policy certainty” that a FES would provide.

The FCAI reiterated its long-held standpoint that the aim of a FES should be to decarbonise the light vehicle sector in the “most efficient and effective way, and in an Australian context”.

“The exact form of a fuel efficiency standard needs to consider the model cycle time frames to bring more fuel-efficient vehicles into Australia and the level of financial and non-financial support from the government,” said FCAI chief executive Tony Weber.

Mr Weber said the FCAI recommends that the government ensures that flexibility is built into the FES, with a long-term visionary target and regular reviews of the annual rate of reduction, and said he looks forward to working closely with the government on implementing an efficient and effective FES and working towards a decarbonised future.

Also endorsing the FCAI position was Mazda Australia, recommending the peak body’s voluntary CO2 standard as a framework for a mandatory equivalent while suggesting the relatively small size of Australia’s market on a global scale, which,combined with being right-hand drive and subject to unique Australian Design Rules, put the nation in a ‘beggars can’t be choosers’ position.

Mazda, like Ford, also reflected concerns about the impact of towing on battery electric vehicle range.

To this end, several submissions from various types of organisations backed the idea of having a different FES category for light commercial vehicles and heavy four-wheel drives in recognition that suitable low-emissions options in these segments would likely be slower to emerge.

Nissan Australia submitted a detailed 12-page response that also pointed to the popularity of utes and large SUVs in this market being a factor for consideration but did highlight that it has battery technology in the works that would be suitable for “a wide range of vehicle segments, including pickup trucks”.

The EVC started its submission by recommending the FES be renamed New Vehicle Efficiency Standard (NVES) to “to more accurately reflect the purpose of this regulation” and “provide clarity to the community that this standard does not apply to existing vehicles already on Australian roads and/or to fuel”.

It called for a ‘NVES’ that was “transparent, credible and globally competitive”, saying such legislation “will reward those car makers that supply greater volumes of low and zero-emission vehicles to Australia and penalise those that do not – exactly as it is intended to do”.

“Those car makers that increase supply sooner will be able to capture the financial benefits enabled via a globally competitive NVES.”

Polestar’s submission recommended strong action, and fast, echoing many of the points made in the EVC submission.

“Government policies supporting aggressive measures to reduce fuel emissions are essential for achieving these ambitious targets,” said Polestar Australia.

“This applies to all nations, including Australia, which must align its fuel efficiency goals with its climate commitments.”

By far the most comprehensive car-maker submission came from Tesla, at 17 pages. It reflected many of the EVC’s recommendations and made an interesting point about how ambitious Australia’s targets should be.

“85 per cent of the global car market is currently covered by FES and several of these standards are likely to be significantly stronger than Australia’s, given Australia is starting much later. Therefore, the risk of Australia legislating a standard that is too strong is minimal,” said the Tesla submission.

In its submission, Volkswagen Group “strongly supports” the introduction of FES and drew on similar schemes from around the world, including Europe, the US and New Zealand to make a mix of recommendations and pointing out that charging infrastructure for long-distance journeys was uniquely critical to this market.

The AADA wants used car imports to be included in the FES – which it supports the introduction of – but like the FCAI and motoring clubs, advocated for a cautious start with regular progress reviews to keep long-term targets in sight.

Australia's dealer representative body also called for “significant fiscal incentives designed to reduce the price gap with conventional vehicles”.

On the topic of industry response to the FES consultation, Mr Bowen said “partnership of industry and government has been crucial to the development of low-emission vehicles” around the world.

“Most importantly, any policy that does not bring consumers along the path of reform will, by definition, fail. Key to the transition for consumers is the availability of product that they want or need at an affordable price.”