Light vehicle emissions standards for Australia

This research report provides an in-depth analysis of light vehicle emissions standards, and demonstrates that mandatory standards are a cost-effective way to reduce Australia’s greenhouse gas emissions and light vehicle fuel use.

Australia has an opportunity to reduce greenhouse gas emissions and lower fuel bills for Australian motorists by making light vehicles more efficient. A light vehicle emissions standard is the best way to achieve this.

Improving the efficiency of light vehicles is one of the least costly emissions reduction options available to Australia.

The Authority proposes that the first phase of mandatory standards be introduced with effect from 2018, by which time local manufacture of automobiles is expected to have ceased. The standards would progressively reduce carbon dioxide emissions from new light vehicles to 105g/km in 2025, almost half the current level of 192g/km. This 2025 standard would broadly bring Australia into line with the United States, and still trail the tighter European Union targets by several years.

It proposes that the targets would be set as an average across the fleet as a whole, rather than be applied to individual vehicles. This fleet-average approach would preserve customer choice when purchasing light vehicles.

Implementation of a standard to reduce carbon dioxide emissions to 105g/km is estimated to increase the average cost of a new car in 2025 by about $1500. However, this would be offset several times by fuel savings of about $8500 over the life of the vehicle, leaving motorists better off. The proposed standard is projected to avoid 59 million tonnes of greenhouse gas emissions over the period to 2030, equivalent to the current annual emissions of all light vehicles.

Full Report – (PDF 2MB)

Summary – (PDF 199KB)

Fact Sheet – (PDF 178KB)

Media Release – (PDF 268KB)

Contents

• Chapter 1 – Introduction (PDF 449KB)
• Chapter 2 – Opportunities to reduce light vehicle emissions in Australia (PDF 804KB)
• Chapter 3 – Policies for reducing light vehicle emissions (PDF 292KB)
• Chapter 4 – Light vehicle emissions standards: setting the right target (PDF 399KB)
• Chapter 5 – Designing an emissions standard for Australia (PDF 73KB)
• Chapter 6 – Implementation (PDF 34KB)
• Appendices (PDF 449KB)
  • Appendix A – International implementation of vehicle emissions standards
  • Appendix B – Modelling and approach to costs and benefits of standards
  • Appendix C – Key design choices
• References – (PDF 78KB)
• Glossary – (PDF 38KB)
• Abbreviations and acronyms – (PDF 44KB)

For more information see:

• Data underlying the charts in this report (XLS 750 kB)
• CSIRO Sensitivity analysis of modelling of light vehicle emission standards in Australia
• Comments from Toyota on the Authority’s report