The Albanese government is going to introduce a fuel efficiency standard. Will the Coalition negotiate on how tough it should be or leave it to the Greens to demand a stricter standard?
The question is whether the Coalition will reject negotiating with the government over how strict the standard should be, forcing Labor to deal with the Greens and other crossbenchers demanding tighter controls to get legislation through the Senate.
That’s because such standards govern the permitted amount of carbon emitted per kilometre and are averaged across manufacturers’ sales of all vehicles. Without this threshold, manufacturers have little incentive to cross-subsidise EV sales to allow them to also sell more profitable, carbon-emitting, petrol-fuelled cars. That’s particularly evident in Australia given its niche right-hand-drive market.
According to an EV index charting the first quarter of this year from the Australian Automobile Association, for example, sales of fully electric vehicles overtook those of petrol-driven vehicles in the medium-sized car category for the first time. The political sensitivity of the issue is reflected in the government’s announcement of a six-week consultation period but without a timeline or any indication of how strict the new standard should be.
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