Australia has announced a revision to its proposed vehicle emission regulations, specifically easing carbon emission standards for select popular pick-up trucks. The decision follows concerns raised by the country’s automotive lobby regarding potential price increases and limited choices for consumers.
In a bid to promote electric vehicle adoption and reduce emissions, Australia had initially introduced vehicle efficiency standards, aiming to penalize manufacturers importing emission-intensive models while incentivizing cleaner alternatives. However, this move prompted a division within the Federal Chamber of Automotive Industries (FCAI), leading electric vehicle manufacturers Tesla and Polestar to withdraw from the group in protest against its resistance to stricter emission standards.
Energy Minister Chris Bowen disclosed that certain widely-used pick-up trucks, colloquially known as “utes” or utility vehicles in Australia, would now be reclassified as light commercial vehicles. Consequently, these models would be exempt from adhering to more stringent fuel economy regulations.
Bowen clarified during a press conference, alongside key figures from leading car companies in Australia, “Not everybody has got everything they have asked for. Some people wanted us to go harder and faster, some had concerns and wanted us to slow, but everybody here today has had a say.”
This relaxation in regulations follows a similar step taken by the United States recently. The Biden administration adjusted its target for electric vehicle adoption from 67% to 35% by 2032 after facing opposition from the industry and autoworkers, particularly in Michigan, a pivotal state in the upcoming presidential elections.
The FCAI had previously criticized the Australian government for proposing “extremely aggressive targets and severe penalties to be effective on very short notice.”
Australia stands out as the only developed nation, besides Russia, without established or in-progress fuel efficiency standards. The center-left government led by Anthony Albanese has been pushing for stricter emission regulations since assuming power in 2022.
Although the emissions scheme is set to commence on January 1, 2025, manufacturers will not be subject to penalties until July. The government intends to introduce the legislation in parliament on Wednesday.