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Raising standards, cutting costs: how an effective new vehicle efficiency standard can reduce vehicle emissions and save consumers money
A new vehicle efficiency standard (NVES), also known as a fuel efficiency standard, places obligations on vehicle manufacturers to limit the amount of carbon dioxide their vehicles emit per kilometre.
More than 85% of vehicles sold worldwide are covered by a NVES. As of early 2023, Australia remains one of the few major global economies without a NVES. Consequently, Australia has less efficient vehicles relative to global peers.
The Climate Council and Electric Vehicle Council commissioned this analysis to examine the potential impact of introducing fuel efficiency standards in Australia.
The analysis found that Australians could collectively share in up to $13.6 billion in net benefits by 2035 from reduced vehicle running costs, cleaner air and less environmental damage if we design new fuel efficiency standards well.
