The big moment from the EV Summit last Friday was Chris Bowen’s, the Minister for Climate Change and Energy, announcement of the government’s plan to introduce a fuel efficiency standard to new vehicles.
The media leapt upon this. Is it a tax? Is it a penalty? Will it kill off Australia’s most-loved cars? It is the same rigmarole and obsession with minutiae that has kept Australia mired in inaction for years. We need to take off our blinkers.
There is nothing contentious about Australia introducing a fuel efficiency standard. As Minister Bowen said in his address to the Summit – Australia and Russia are the only two developed countries that don’t have one. From my base here in Brisbane, that’s not something I’m proud of.
What is a fuel efficiency standard?
In simple terms, a fuel efficiency standard acts as a guard rail for car manufacturers as they assess which cars to send to our market. Through the standard, Australian policy will be able to dictate the level and volume of low to no emissions vehicles we want here in Australia.
Manufacturers are welcome to exceed those standards. They are also welcome to send vehicles that don’t meet them. However, it will become increasingly expensive for manufacturers to send cars that don’t meet our standards into the Australian market.
Supply chain issues to the side, the end result should be that EVs become more affordable compared to petrol vehicles.
A consultation paper to be released in September will help unpack the implications of a fuel efficiency standard in Australia and to flesh out what ‘standard’ we expect manufacturers to meet.
Of course, it doesn’t matter how many EVs are available or how affordable they are if you don’t have the infrastructure to keep them running. And not just in our cities. I can’t see anyone tackling the Eyre Highway, with its nearly 150km straight, flat stretch of road, in an EV.
Making EV transition a success in Australia
Passenger vehicles must be able to travel between urban, regional and remote areas with assurance that there will be fast charging stations along the way.
Again, I urge Australians to take their blinkers off – particularly as it pertains to a fuel emissions standard. The government has more up its sleeve – and it will need this and more – to make the transition to low emissions vehicles a success.
Minister Bowen also reminded the gathered experts and industry leaders on Friday that the government is committed to delivering a national EV charging network with stations at an average interval of 150km on major roads (so the rough length of the Eyre Highway).
In addition, and one I’m particularly pleased to see, is the commitment to a national hydrogen highways refueling network. Tailoring solutions to the specific requirements of our extensive transport network is essential if we’re to break the back of transport carbon emissions. EVs are great for passenger vehicles. Hydrogen will be the fuel of the future for our freight and long-haul carriers.
The policy is promising. I look forward to the consultation paper. However, Australia is a decade behind many of its peers when it comes to the adoption of EVs. Ambitious plans and robust targets are required if Australia is to take its place as a leader in EVs.
