Consultation Begins on Fuel Emissions

Media Release


20 December 2016

Joint release with:

Josh Frydenberg

Minister for the Environment and Energy

The Ministerial Forum on Vehicle Emissions is seeking input from consumers and industry on vehicle emissions.

The Ministerial Forum was established in 2015 to examine the regulatory framework for vehicle emissions in Australia. Consultation will begin on three draft proposals to reduce fuel consumption and greenhouse gas emissions and pollution from car, truck and bus exhausts.

The draft proposals are designed to keep Australia in line with international vehicle markets—and keep us enjoying some of the cleanest air in the world.

The first proposal is for new fuel efficiency standards. By requiring global automotive manufacturers to supply vehicles in Australia with more fuel efficient engines—as they are now doing in many other countries—these new standards could cut consumer fuel spending by up to $28 billion by 2040.

This translates into annual fuel savings for the average owner of a passenger car and light commercial vehicle of up to $519 and $666 respectively.

The proposed standards could also reduce Australia's greenhouse gas emissions by up to 65 million tonnes by 2030, with these reductions helping meet Australia's emissions reduction targets.

Under the Paris Agreement, Australia has an ambitious target of reducing emissions by 26 to 28 per cent by 2030, one of the highest on a per capita basis in the G20.

The second proposal is to upgrade existing air pollution standards for cars, trucks and buses, in line with higher standards which already apply in Europe, the US and many other countries. This could reduce toxic emissions and potentially save $4.2 billion in healthcare costs by 2040.

The third proposal is for a discussion paper exploring options to improve the quality of our road transport fuels to reduce noxious emissions.

Current fuel standards expire in 2019 and we need to be ready with new standards to ensure Australians can have access to the right fuel for the latest vehicle technology. The right standards will deliver further health and environmental benefits.

The Government will continue to explore other ways to reduce vehicle running costs and emissions, such as the type of information provided to consumers when buying a car, and support for emerging technologies.

The Ministerial Forum on Vehicle Emissions will host a stakeholder engagement forum in February 2017 as part of the consultation on these proposals.

Information on how to lodge a submission on any of the three draft proposals is available at Submissions close on 10 March 2017.