Until now, Australia has remained alongside Russia as one of the only advanced economies without such a standard, leaving Australian motorists with fewer options for fuel-efficient vehicles.

The New Vehicle Efficiency Standard (NVES) starting from 1 January 2025, marking a significant shift in Australia's automotive landscape. The Standard is specifically tailored for Australian conditions, ensuring a smooth transition to a more efficient vehicle fleet while preserving consumer choice. It applies only to new vehicles, with car manufacturers incentivised to supply their most efficient models across all types - including diesel, petrol, hybrid and electric vehicles.

The 2024-25 Budget allocates $84.5 million over five years to establish the scheme, including a regulator and a credit trading system between manufacturers.

• Reduces new passenger vehicle emissions by more than 60% by 2030

• Roughly halves new light commercial vehicle emissions by 2030

• Projects $95 billion in fuel savings for motorists by 2050

• Reduces transport sector CO2 emissions by 321 million tonnes by 2050

• Brings Australia in line with the majority of the global car market

• Implementation supported by $84.5 million over five years

The policy represents what Climate Change Minister Chris Bowen describes as "an end to the decade of delay and denial," while Infrastructure Minister Catherine King emphasises it will give Australians access to "the most advanced car, SUV and ute technology offered in other countries."

[1] https://www.infrastructure.gov.au/infrastructure-transport-vehicles/vehicles/new-vehicle-efficiency-standard/australias-new-vehicle-efficiency-standard-frequently-asked-questions

[2] https://www.dcceew.gov.au/energy/transport/national-electric-vehicle-strategy

[3] https://www.legislation.gov.au/C2024A00034/asmade/text

[4]https://alp.org.au/news/an-australian-made-new-vehicle-efficiency-standard/