Australia's new vehicle emission standard: What you need to know
Australia is set to finally tighten its vehicle emissions standards from January 2025, marking a significant step towards reducing light vehicle emissions. The new regulations, part of the National Vehicle Emissions Standards (NVES), will require car manufacturers produce cars which use less fuel per kilometre. Each vehicle manufacturer has a set average CO2 target for the vehicles they produce, which they must meet or beat. Over time, the CO2 target is lowered and in order to continue to meet or beat the target, companies must provide more choices of fuel-efficient, low or zero-emissions vehicles.
What are the benefits of the new NVES?
The most prominent benefit of the NVES will put us in tandem with the majority of the world’s vehicle markets where 85% of all vehicles are sold. Additionally, the accumulation of demerit points and penalties will start on 1st July 2025. Thus, over time, vehicles with fuel-efficient and other more modern technology will also enter the second-hand market, improving the efficiency of Australian vehicles overall.
Light Vehicles Emission Report Summary
The Light Vehicles Emission Report, released in 2023, highlighted the need for stricter emissions standards in Australia. The report revealed that while the average fuel economy of new cars sold in the country has improved in recent years, there is still room for significant reductions. The NVES will force global manufacturers to send us cars that use the same advanced fuel-efficient technology that they send to other countries.
Implementation and Expected Effects
There have been rumours based on misunderstandings that people will be unable to use their existing cars following the implementation of the NVES. Some have expressed apprehensions about purchasing a Ute or 4WD vehicles as they might get discontinued entirely. However, the NVES will place no such restriction upon those cars that exist on the road currently. The new efficiency standard is solely set for any new cars that will be sold starting January 2025. On the bright side for the Australian consumers, the NVES will cause the manufacturers to import better, more advanced vehicles which will eventually lead to important steps towards lowering our overall vehicle emissions and achieving the eco-friendly milestones. Bringing a wider range of new and more efficient petrol, diesel, hybrid and electric vehicles (EVs) to market will cost vehicle suppliers more, but people will not be forced to buy a more expensive option that doesn't work for them. For those who want to spend more upfront to save over time, the NVES will help make those choices available, and ultimately increase options in the second-hand market as well.
While there are speculations that the manufacturers will increase the price of the cars as they pass on the cost of the emission upgrades to customers, there is little that can be said at the time. However, according to one of the NVES websites, places like Canada and the US have had an equivalent of the NVES and did not see any correlation between the new standard and an increase in prices of cars.
History and Path Ahead
As an initiative to become more eco-conscious, Australia is committed to going net zero on fuel emissions by 2050. The NVES is being introduced in order to make those goals achievable. Australia has implemented vehicle emissions standards before, with previous regulations contributing to improvements in air quality, but there has been a time period where our legally-mandated standards were behind the times compared to those in Europe or the USA. The new standards represent a continuation of this commitment to a cleaner and more sustainable future. However, challenges remain. The automotive industry will need to invest in research and development to produce vehicles that meet the new standards, and some of their additional costs will be passed on to car buyers in terms of prices. There is also the push for battery electric vehicles for the long term goal of green mobility and we can expect to see a lot of innovation in the coming years to make eco-friendly technologies more accessible without compromising on utility and practicality..
Conclusion
The introduction of stricter vehicle emissions standards in Australia from 2025 is a positive step towards a cleaner and more sustainable future. While there may be challenges to overcome, the expected benefits in terms of reduced emissions, improved air quality, and a greener transportation sector make it a worthwhile endeavour. As the automotive industry adapts to these new regulations, we can look forward to a future with more modern cars and a healthier environment for everyone.
Australia is set to finally tighten its vehicle emissions standards from January 2025, marking a significant step towards reducing light vehicle emissions. The new regulations, part of the National Vehicle Emissions Standards (NVES), will require car manufacturers produce cars which use less fuel per kilometre. Each vehicle manufacturer has a set average CO2 target for the vehicles they produce, which they must meet or beat. Over time, the CO2 target is lowered and in order to continue to meet or beat the target, companies must provide more choices of fuel-efficient, low or zero-emissions vehicles.
What are the benefits of the new NVES?
The most prominent benefit of the NVES will put us in tandem with the majority of the world’s vehicle markets where 85% of all vehicles are sold. Additionally, the accumulation of demerit points and penalties will start on 1st July 2025. Thus, over time, vehicles with fuel-efficient and other more modern technology will also enter the second-hand market, improving the efficiency of Australian vehicles overall.
Light Vehicles Emission Report Summary
The Light Vehicles Emission Report, released in 2023, highlighted the need for stricter emissions standards in Australia. The report revealed that while the average fuel economy of new cars sold in the country has improved in recent years, there is still room for significant reductions. The NVES will force global manufacturers to send us cars that use the same advanced fuel-efficient technology that they send to other countries.
Implementation and Expected Effects
There have been rumours based on misunderstandings that people will be unable to use their existing cars following the implementation of the NVES. Some have expressed apprehensions about purchasing a Ute or 4WD vehicles as they might get discontinued entirely. However, the NVES will place no such restriction upon those cars that exist on the road currently. The new efficiency standard is solely set for any new cars that will be sold starting January 2025. On the bright side for the Australian consumers, the NVES will cause the manufacturers to import better, more advanced vehicles which will eventually lead to important steps towards lowering our overall vehicle emissions and achieving the eco-friendly milestones. Bringing a wider range of new and more efficient petrol, diesel, hybrid and electric vehicles (EVs) to market will cost vehicle suppliers more, but people will not be forced to buy a more expensive option that doesn't work for them. For those who want to spend more upfront to save over time, the NVES will help make those choices available, and ultimately increase options in the second-hand market as well.
While there are speculations that the manufacturers will increase the price of the cars as they pass on the cost of the emission upgrades to customers, there is little that can be said at the time. However, according to one of the NVES websites, places like Canada and the US have had an equivalent of the NVES and did not see any correlation between the new standard and an increase in prices of cars.
History and Path Ahead
As an initiative to become more eco-conscious, Australia is committed to going net zero on fuel emissions by 2050. The NVES is being introduced in order to make those goals achievable. Australia has implemented vehicle emissions standards before, with previous regulations contributing to improvements in air quality, but there has been a time period where our legally-mandated standards were behind the times compared to those in Europe or the USA. The new standards represent a continuation of this commitment to a cleaner and more sustainable future. However, challenges remain. The automotive industry will need to invest in research and development to produce vehicles that meet the new standards, and some of their additional costs will be passed on to car buyers in terms of prices. There is also the push for battery electric vehicles for the long term goal of green mobility and we can expect to see a lot of innovation in the coming years to make eco-friendly technologies more accessible without compromising on utility and practicality..
Conclusion
The introduction of stricter vehicle emissions standards in Australia from 2025 is a positive step towards a cleaner and more sustainable future. While there may be challenges to overcome, the expected benefits in terms of reduced emissions, improved air quality, and a greener transportation sector make it a worthwhile endeavour. As the automotive industry adapts to these new regulations, we can look forward to a future with more modern cars and a healthier environment for everyone.
