If Australia introduced mandatory emissions or fuel economy standards for cars, emissions could be reduced by millions of tonnes, a new report from the Climate Change Authority says.



The restrictions on all light vehicles could avoid 59m tonnes of emissions by 2030 and double the fuel efficiency of light vehicles in Australia by 2025, CCA estimates show.

The mandatory standards, which the authority says could also lower fuel bills, would include restrictions on how much carbon dioxide could be emitted from vehicles from 192g/km to 105g/km.

The report, Light Vehicle Emissions Standards for Australia, proposes starting to introduce the standard from 2018 when car manufacturing finishes in Australia.

“Australia has an opportunity to reduce greenhouse gas emissions and lower fuel bills for Australian motorists by making light vehicles more efficient. A light vehicle emissions standard is the best way to achieve this,” the report says.

“Reducing emissions from all light vehicles (including both passenger and light commercial vehicles) would support Australia’s contribution to global efforts to limit the harmful impacts of climate change.”

Transport accounts for 16% of Australia’s greenhouse gas emissions and light vehicles alone account for 10%.

“Despite a long history of policy discussion and moderate improvements in vehicle fuel efficiency and emissions, Australia lags behind many other countries. This is unlikely to change in the absence of government action, despite the closure of domestic manufacturing and the importation of all vehicles by 2018,” the report says.

“Without regulatory intervention to address market failures and other behavioural barriers, Australia risks continuing to lag behind and to miss opportunities to improve its energy productivity, reduce emissions and permit motorists to save on their fuel bills.

“The early introduction of a light vehicle emissions standard for Australia is both achievable and desirable, and the benefits demonstrably outweigh the costs at whatever levels they are assessed.”

The standard would likely increase the average cost of a car by $1500 by 2025 but CCA chairman, Bernie Fraser, said it would reduce fuel costs by about $8500 over the life of the car.

“Australia is unusual in the developed world in not having mandatory emissions or fuel economy standards,” he said in a statement.

“The United States, Canada, the EU, Japan and Korea all have mandatory standards. China and India also have mandatory standards, and both have more efficient passenger vehicle fleets than Australia.”