New Vehicle Efficiency Standard to cut 20 million tonnes of climate pollution this decade

New research from the Climate Council has found the New Vehicle Efficiency Standard is set to slash emissions equivalent to 5.1 million gas powered homes over two years


Australia is on the cusp of a significant shift towards cleaner, more efficient vehicles with the proposed introduction of the New Vehicle Efficiency Standard by the Federal Government at the start of 2025. This standard, tailored for Australian conditions, is poised to not only benefit the environment but also save Australian motorists money at the fuel pump.

According to new Climate Council analysis, this standard could play a crucial role in reducing transport-related emissions, a key factor in combating climate change. By 2030, it is estimated that the standard could prevent a whopping 20 million tonnes of pollution from entering the atmosphere, equivalent to the emissions produced by 5.1 million gas-connected homes over two years.

“Transport is Australia’s fastest-growing source of climate pollution. This new analysis reveals that the New Vehicle Efficiency Standard will cut 20 million tonnes of climate pollution this decade, an impressive step in the right direction," said Amanda McKenzie, CEO of the Climate Council.

Dr. Jennifer Rayner, Head of Policy and Advocacy at the Climate Council, spoke to the significant impact of capping the emissions of new cars, stressing that it will lead to cleaner air and cheaper bills for Australians.

“We can slash climate pollution from transport by cleaning up our cars. Capping the amount of climate pollution new cars produce is a long-overdue piece of the puzzle in giving Australians access to the same clean, efficient cars millions are already buying overseas," Dr Rayner said.

Australia's move to implement a New Vehicle Efficiency Standard signals a shift towards a cleaner and more sustainable transportation future. This standard not only aligns Australia with comparable economies but also addresses a long-standing gap in the country's environmental policies.

The standard is the result of extensive consultations with various stakeholders, reflecting a collaborative effort to address Australia's transport emissions. It also comes with adjustments and modifications to ensure its effectiveness and feasibility.

Some of these adjustments include recategorizing certain 4WDs as light commercial vehicles, smoothing emissions trajectories for different vehicle types, and staging the implementation to allow for proper preparation and testing of data reporting capabilities.

To support the transition to more efficient vehicles, the government has also allocated $60 million to boost electric vehicle charging infrastructure at Australian dealerships through the Driving the Nation program.

To read more about the New Vehicle Efficiency Standard, go to the Department of Infrastructure, Transport, Regional Development, Communications and the Arts website here.

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