Australia's New Emissions Standards for Cars Overcome a Major Hurdle - Latest Global News

Australia’s New Emissions Standards for Cars Overcome a Major Hurdle

Albania’s Labor government has reached an agreement with the Greens to ensure parliament’s adoption of its new vehicle emissions regulations.

The Greens have agreed to adopt the New Vehicle Efficiency Standard (NVES) in return for the government agreeing to scrap an amendment that could speed up the approval of gas projects.

The bill is expected to pass the Senate this week.

The proposed vehicle emissions regulations initially drew criticism from manufacturers such as Mazda, but were later watered down.

Although the Greens largely agreed with the NVES legislation, the party was reluctant to formally declare its support, while a separate amendment speeding up the approval of gas projects threatened to undermine progress in reducing car emissions.

With the compromise on the approval of gas projects, the Greens have agreed to pass the NVES and separate reforms to taxes on offshore gas unchanged.

The NVES will set an average CO2 emissions limit for the vehicles automakers sell each year.

From July 1, 2025, car manufacturers will be fined $100 per g/km for any vehicle that exceeds CO2 emissions targets. The emissions cap is lowered every year to force them to sell increasingly lower-emission vehicles.

The government’s original preferred option for the NVES would have put all SUVs in the same category as passenger cars, but this was changed to include “heavy off-road passenger vehicles” in a “Type 2” category alongside light trucks, vans and large pickup trucks .

These include large body-on-frame SUVs such as the Toyota LandCruiser and the Nissan Patrol.

The Type 1 category includes “light off-road passenger vehicles” as well as passenger cars and passenger vans.

The CO2 limits differ between Type 1 and Type 2 vehicles, meaning car manufacturers can still sell large combustion-powered small cars and SUVs, but will have to compensate for this with more efficient vehicles.

Mazda Australia marketing director Alistair Doak said this earlier this month CarExpert The automotive industry was generally “pleased” with the changes to the system.

“We’ve always said we welcome a plan, a solid plan, so we can actually start preparing and working towards those numbers,” he said.

“We will work as hard as possible to comply with the regulations and associated expectations.”

MORE: All our coverage of the New Vehicle Efficiency Standard

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