Fuel efficiency standards are a game changer. They help reduce carbon emissions, cut fuel costs, and pave the way for cleaner, greener vehicles. With Australia set to roll out its New Vehicle Efficiency Standard on 1 January 2025, it’s the perfect time to understand what this policy means and why it’s crucial for the country’s future. Here are the five most important things you need to know.
1. What Are Fuel Efficiency Standards and Why Do They Matter?
Fuel efficiency standards set a limit on how much carbon emissions new vehicles are allowed to produce, on average. Over time, these limits get tighter, encouraging automakers to send cleaner, more efficient vehicles to the market.
Transport emissions currently make up 19% of Australia’s total carbon footprint. Without these standards, Australia risks falling behind in the global push to cut emissions. Fuel efficiency standards help address this issue while ensuring Australians gain access to cleaner, cheaper-to-run cars.
2. Fuel Efficiency Standards Save You Money
With the cost of living rising, fuel efficiency standards can make a real difference to your wallet. These policies ensure new cars are designed to use less fuel, saving you money every time you drive.
- Up to $10,000 can be saved over the lifetime of a fuel-efficient car.
- By 2035, fuel efficiency standards could deliver $13.6 billion in economic benefits across Australia.
Switching to electric vehicles (EVs) offers even more savings. EVs eliminate petrol costs entirely and come with lower maintenance expenses. Fuel efficiency standards will also bring more affordable EV options to Australia, making them accessible to more drivers. And here’s the bonus: the money you save stays in the local economy instead of flowing to fossil fuel companies overseas.
3. They Help Clean Up the Environment
Fuel efficiency standards don’t just save money—they’re also a powerful tool for combating climate change. By limiting emissions from new vehicles, they push manufacturers to create cleaner cars, eventually phasing out petrol and diesel models for zero-emission alternatives.
- Strong standards could prevent 31 million tonnes of CO₂ emissions by 2035.
- These policies also tackle harmful pollutants like nitrogen oxides (NOx) and particulate matter (PM2.5), which can cause respiratory illnesses.
Cleaner vehicles mean better air quality for everyone. Transport emissions currently contribute to over 11,100 premature deaths in Australia each year. Reducing these emissions could save lives and improve health outcomes nationwide.
4. Fuel Efficiency Standards Expand Your Vehicle Options
Right now, Australians face long waiting lists and limited choices when it comes to low- and zero-emission vehicles. For example, there are only about 50 EV models available in Australia, compared to over 200 models in Europe.
Fuel efficiency standards incentivise car manufacturers to prioritise markets with strict policies. This means that with strong standards, Australians can expect:
- Shorter wait times for electric and hybrid vehicles.
- A greater variety of options, including fuel-efficient petrol cars and EVs.
- Faster adoption of green technologies that make driving cleaner and more affordable.
Countries like the US, New Zealand, and the UK already enjoy a wider range of cleaner, cheaper vehicles thanks to their long-standing fuel efficiency standards. Australia’s new policy will help level the playing field.
5. Strong Standards Mean a Sustainable Future
For fuel efficiency standards to truly make an impact, they need to be strong and well-designed. Weak standards—such as those with loopholes like “super credits”—can let manufacturers meet targets without actually reducing emissions.
A robust standard ensures that by 2035, all new vehicles sold in Australia will be zero-emission. This aligns with global goals to achieve net zero by 2050. Countries like New Zealand and the UK have already shown how strong standards can lead to:
- Faster decarbonisation of transport.
- Quicker adoption of clean technologies.
- Significant benefits for both the economy and the environment.
The stakes are high. If Australia had introduced fuel efficiency standards in 2016, drivers could have saved $5.9 billion on fuel and avoided 9 million tonnes of CO₂ emissions. Every day without these standards delays these benefits and keeps Australians stuck with high fuel costs and polluting cars.
Conclusion: Why Fuel Efficiency Standards Matter
Fuel efficiency standards aren’t just about reducing emissions—they’re about creating a future where driving is cleaner, cheaper, and better for everyone. These policies lower costs, improve public health, and help Australia take meaningful action against climate change.
At NetNada, we’re here to help businesses and organisations tackle their carbon emissions. If you’re looking for ways to decarbonise your fleet or improve your organisation’s sustainability, book a free consultation with us today. Let’s work together to drive Australia toward a greener, more sustainable future.
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