The Electric Vehicle Council (EVC) has warned that removing penalties for car manufacturers who fail to meet pollution targets could lock Australians out of cleaner, cheaper-to-run cars. This change could mean that millions of Australians miss out on saving up to $3,000 per year.
The New Vehicle Efficiency Standard (NVES) started earlier this year to help bring cleaner, more efficient vehicles, including electric cars (EVs), to Australia. Under the current rules, car companies are fined if they bring in cars that are expensive to run and pollute the environment. These fines help encourage manufacturers to bring the most fuel-efficient cars to Australia.
However, reports suggest that the government may scrap these penalties. The EVC believes that without penalties, car manufacturers will not have enough reason to offer affordable, fuel-efficient cars. This would limit Australians’ choices and make it harder for them to save money on running costs.
Up to $3,000 in Savings at Risk
“To remove fines from the NVES is a bit like having a speed limit with the speed cameras turned off,” said EV Chief Executive Julie Delvecchio.
“The NVES doesn’t work without a carrot and stick approach. The ability to earn credits for bringing in fuel-efficient cars is an incentive for car manufacturers to deliver modern, cheaper-to-run models to Australians, while fines ensure compliance with standards.”
Delvecchio stressed that this change would stop Australians from saving money.
“Removing penalties in the efficiency standard will mean one thing: Australians will be locked out of the savings that come from switching to an EV – up to $3,000 a year that could be in their pocket – simply because the most fuel-efficient vehicles will never reach our shores,” she said.
The NVES Is Already Helping Australians
The NVES is already helping Australians by offering more options for fuel-efficient cars. These cars cost less to run and are better for the environment. By bringing more electric and efficient cars to the market, Australians have the chance to save money and lower their carbon footprint.
Delvecchio pointed out that there is no evidence that the NVES is making new cars more expensive. “There is zero evidence that the NVES is driving up the cost of new cars. In fact, it is making owning and driving a new car more affordable for Australians as their vehicles will guzzle less petrol and diesel, and as more choice drives lower prices,” she said.
Scrapping Penalties Will Set Back Progress
The EVC warned that scrapping penalties would reverse the progress Australia has made. If the NVES is weakened, Australia risks going back to a time when less-efficient, polluting cars were more common on Australian roads.
AA weaker NVES threatens the $114 billion in fuel and maintenance savings and health benefits for Australians, only for the benefit of some manufacturers. To water down the NVES will reverse the progress that Australia has made and will put us back in line with the likes of Russia who doesn’t have a fuel efficiency standard.”
“Without a strong fuel efficiency standard, Australia risks once again becoming the world’s dumping ground for fuel-guzzling, polluting vehicles. Some manufacturers may prefer a toothless policy, but Australians would pay the price for such short-sighted changes,” she continued.
A Cost-of-Living Issue
She also pointed out that this issue is about more than just the environment. It’s a cost-of-living issue that affects millions of families across Australia. The NVES is helping to make driving more affordable and cleaner. Without a strong standard, Australians could end up paying more for fuel and higher car running costs.
“This is a cost-of-living election and NVES is absolutely about improving the cost of living for Australians as it continues to bring in cheaper-to-run cars, reducing costs at the bowser,”
“Maintaining a robust NVES is vital if we want to make driving more affordable and the air that we all breathe cleaner,” she added.
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