More detail needed on proposed Vehicle Efficiency Standards

Australia’s peak motoring body looks forward to understanding the details underpinning the Government’s announced New Vehicle Efficiency Standard, and the winners and losers associated with each of the three scenarios up for discussion.

The AAA has long championed the implementation of an Australian fuel efficiency standard that minimises costs to motorists, while improving choice and ensuring that Australia maintains access to a first-world vehicle fleet.

Fuel efficiency standards act as a sector-specific cap and trade scheme, and incentivise carmakers to increase the provision of electric vehicles and more fuel-efficient traditional vehicles, while disincentivising the supply of less fuel-efficient vehicle variants, via fines.

The AAA welcomes the Government’s desire to implement a New Vehicle Efficiency Standard, as the fuels and technologies driving the global car fleet are changing rapidly and they have the potential to offer Australians greater vehicle choices, cleaner air, improved fuel security, and cheaper household bills.

AAA Managing Director Michael Bradley said: “The AAA and its members want Australians in the best possible position to adopt new vehicle technologies and choose the transport technology options that best suit their lifestyle, household budget, and commuting needs.

“We also want to ensure all Australians can afford to own and operate a car in our vast country with its unique driving conditions.

“The Government should be commended for pursuing this regulatory change. However, it must be transparent about the three scenarios presented; the winners and losers they each create; and their respective positive and negative impacts upon the price and availability of different vehicles. The AAA encourages the Government to release its modelling so the millions of Australians to be affected by this change can understand exactly what it means for them.”

The AAA urges all parties and parliamentarians to develop a politically sustainable vehicle efficiency standard capable of enhancing consumer choice for Australian motorists, while minimising associated costs.

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