The Business Council has made a submission that supports the introduction of a new fuel efficiency standard of 105gCO2/km by 2025 for all new light vehicles in Australia. Like all sectors, it is vital that the transport sector contributes to Australia’s emission abatement task. Light vehicle emissions account for more than 60 per cent of emissions in the transport sector (and approximately 10 per cent of Australia’s total emissions).
A fuel efficiency standard of 105gCO2/km by 2025 is the appropriate target to choose due to the government’s modelling showing that this standard will provide net economic benefits to the Australian economy of $13.9 billion to 2040. The main benefits identified in the analysis was a reduction in fuel costs to the economy of $27.5 billion and a cumulative reduction in greenhouse gas emissions of 65 million tonnes by 2030 and 231 million tonnes by 2040.