It is hard to overstate the significance of the role of transport emissions in achieving national greenhouse gas reduction targets. Transport is both a major source of greenhouse gas emissions— accounting for 18% of Australia’s total emissions and the second largest source after electricity (34%)—and one of the easiest sources to abate. The widespread availability of more fuel-efficient vehicles and zero-emission vehicles means that there are many reasonably straightforward ways transport emissions can be reduced.

At the same time, with historically high fuel prices, the path to lowering transport emissions — burning less petrol and diesel — is also the path to major cost savings for households, as well as significantly improving the nation’s fuel security.

This paper outlines how the growth in the greenhouse gas emissions of Australia’s passenger vehicle fleet is one of the highest among the developed countries. The paper then shows that the high emissions growth is closely related to the relatively low fuel efficiency of Australia’s passenger vehicle fleet, which in turn is the result of the pattern of new vehicle sales dominated by relatively inefficient vehicles especially dual-cabs utes. A pattern encouraged by current tax settings.

The analysis is compared to the outcomes in the U.K, a similar highly developed, righthand drive country, middle ranked in average fuel efficiency, with a greater share of its population in rural and regional areas, and yet has successfully lowered its transport emissions.