'A turning point': Federal Government reveals Australia's first electric vehicle strategy and fuel efficiency standard

The government hopes more choice and better quality of cars, as well as the key target of reducing transport emissions, will be the outcome of its proposed electric vehicle strategy and fuel efficiency standard announced today.

The Australian Government will bring the country up to speed with the rest of the world when it comes to electric car uptake, as well as improving the quality of our fuel by imposing a minimum fuel quality that would entice manufacturers to bring higher quality cars to our shores.

A joint announcement from Minister for Climate Change and Energy Chris Bowen and Minister for Infrastructure and Transport Catherine King today outlined that the government aims to give Australian motorists "a better choice of electric vehicles, and encourage greater use of cleaner, cheaper-to-run vehicles".

While an uptake in electric cars is one part of the plan to reduce emissions, the government says cleaner fuel would not only assist in that, but also save motorists money, estimating it could lower fuel costs by around $519 per year on average.

The ministers' joint statement claims "new cars in Australia use 40 per cent more fuel than the European Union, 20 per cent more than the United States, and 15 per cent more than New Zealand".

The move to increase EV uptake also comes with new initiatives put forward by the government, including a recycling, reuse and stewardship program for "EV and other large format batteries", and a "national mapping tool" to best invest in EV infrastructure.

Reactions from key industry and lobby groups have been primarily in favour of the announcement, with the auto industry representative body the Federal Chamber of Automotive Industries (FCAI) agreeing that the fuel standard should be introduced as long as it is suited to Australia and not a "simplistic copy of an overseas standard".

"Australia's automotive industry has been calling for a Federally led standard for many years and introduced its own voluntary scheme in 2020 in an effort to initiate some action," FCAI Chief Executive Tony Weber said.

"The Federal Government's announcement this morning acknowledges the proposed scheme will be suited to Australia, apply all available emissions reducing technologies and ensure that Australian families and businesses are not disadvantaged in terms of choice and price.

"The questions and topics raised in the consultation paper highlight the complexity of the issue and demonstrates the Government has done its homework."

Alongside the FCAI, the Electric Vehicle Council has welcomed the move, but says the standard on fuel quality must be stringent.

"There's a long road ahead for Australia to catch up with the rest of the world on electric vehicle policy, but this strategy can accelerate progress," said Electric Vehicle Council Chief Executive Behyad Jafari.

"It's a relief that an Australian Government has finally committed to fuel efficiency standards, which have been operational in the US and Europe for decades.

"But with those jurisdictions now leaping forward in terms of ambition Australia must bring in strong standards that keep pace with the modern world.

"If we squib it on the detail, Australia will remain the world's dumping ground for dated, high-emission vehicles."

Echoing Jafari's words, the Climate Council released a statement calling on the fuel efficiency standard to meet a few key points, including "a target of all new vehicles sold being zero emissions by 2035 at the latest; aligning with other car markets like New Zealand, the United States and Europe as a minimum; avoiding credits and loopholes that undermine [its] effectiveness; auto manufacturers shouldn't be able to opt out".

After a period of consultation with organisations and public feedback, the government will release its proposed Fuel Efficiency Standard by the end of 2023.