The Federal Chamber of Automotive Industries (FCAI) welcomes the opportunity to provide input into the Low Emissions Technology Statement 2021 (LETS 2021) and provide guidance on the development of the LETS 2022.
FCAI commentary will only be specific to certain elements of LETS 2021 and the development of LETS 2022 as it pertains to light duty motor vehicles (passenger cars and light commercial vehicles) and motorcycles.
The FCAI is the peak Australian industry organisation representing the importers of passenger vehicles, light commercial vehicles, and motorcycles in Australia.
The automotive industry in general, and the FCAI membership specifically has and continues to make significant contributions towards climate change goals both internationally and domestically through the introduction of a range of Zero and Low Emission Vehicle (ZLEV) technologies.
FCAI member organisations are at the cutting edge of innovation, according to Boston Consulting Group
2021 Most Innovative Companies Report1, four (4) vehicle manufacturers are in the top fifty (50) most
1 https://www.bcg.com/en-au/publ…
2 https://www.fcai.com.au/news/p…
innovative companies. The global companies that we represent collectively spend over $100b a year in Research and Development (R&D) to bring new technologies to market. In comparison global defence and aerospace R&D spending is around $22b.
These companies see countries across the world put in place an extensive range of policy measures to increase the use of zero emission vehicles [battery electric (BEV) and fuel cell electric (FCEV)] and other low emission vehicles, from funding infrastructure to mandating ZLEV fleet targets and providing purchasing incentives for consumers. These countries have taken this policy action because they recognise that significant barriers exist for these new vehicle technologies to be adopted by consumers in numbers necessary for the transport sector to play its role in meeting net zero CO2 targets.
International experience demonstrates that with the right policy settings, the market share of ZLEVs can increase considerably beyond the gradual increase in consumer demand typically observed based on natural market forces.
In a demonstration of the automotive industry’s absolute resolve to address climate change, in 2020, all FCAI members agreed to a voluntary CO2 code of conduct with an overall target to reduce light transport emissions through to 2030 in line with the Paris Climate agreement. Progress towards this target is being tracked and reported annually2. To meet these stringent targets emissions will have to reduce on average, by four percent for passenger vehicles and light SUVs and three percent for large SUVs and light commercial vehicles.
FCAI strongly supports Governments increasing investment in the infrastructure required for these advanced powertrain vehicles. Battery Electric Vehicles (BEV) require electrical recharging infrastructure and the emerging Fuel Cell Electric Vehicles (FCEV) require hydrogen refuelling infrastructure. FCEV technology is expected to be critical particularly for larger vehicles where available payload is of paramount importance combined with extended range capabilities which is vital in the Australian context. Similarly, as is the need for a hydrogen guarantee of origin scheme to stimulate the availability of low carbon sources of hydrogen fuel.
Finally, achieving meaningful reductions in emissions will require a range of solutions. This includes encompassing ZLEV vehicles including hybrid and low emission Internal Combustion Engine (ICE) vehicles that require fuel standards commensurate with those published in the Worldwide Fuels Charter. Currently Australia has the worst fuel quality in the OECD; preventing Australians from accessing some of these advanced low emission ICE powertrains.
Read the full submission at the link below.