This is the Business Council of Australia’s submission to the Ministerial Forum on Vehicle Emissions’ consultation on vehicle emissions and fuel quality standards.
The Business Council supports the introduction of stricter CO2 emission standards for new light vehicles in Australia. Multiple studies have found that vehicle fuel efficiency represents some of the lowest cost abatement in Australia. The Department of Infrastructure's regulation impact statement estimates that the net benefit to the Australian economy in 2040 of the introduction of a standard requiring light vehicles to reach the target of 105g/km CO2 by 2025 would be $13.9 billion. Unnecessary delays in adopting vehicle emission standards should be avoided, as this will simply reduce the amount of carbon abatement that is achieved and entrench a less fuel-efficient passenger car fleet on Australian roads over the next two decades.
The Business Council does not support the introduction of stricter noxious emissions and fuel quality standards at this point in time. The introduction of stricter noxious emission standards and fuel quality standards requires further analysis to ensure all of the relevant benefits and costs are properly accounted for. Over time Australia’s fuel quality has improved and this will continue as the market for cleaner vehicles will demand this.