The Australian Government should learn from this morning’s announcement by the United States Environmental Protection Agency (EPA) who amended its emissions reduction targets and timeline because the impact on consumers and manufacturers was too severe.
Chief Executive of the Federal Chamber of Automotive Industries (FCAI) Tony Weber said that the United States had joined the UK and New Zealand in reviewing the pace of the introduction of strict fuel efficiency standards, allowing more time for consumers and car makers to make the switch to more efficient vehicles.
“A vehicle efficiency standard is a major step for Australia, and we should take the time to ensure that car companies have sufficient time to increase the supply of zero and low emission vehicles into the local market.
“Like in the US, Australian consumers should have time to embrace the shift, and ensure they have access to the types of vehicles they want and need at prices they can afford.
Mr Weber added that there was no value introducing a scheme where the ambition outweighed the reality of market supply and demand, only to wind it back later.
“In addition to timing, the Government should consider other elements of the US standards that includes vehicle multiplier credits, off cycle credits such as air-conditioning credits, penalty structure, timing and vehicle classification. The US Government also provides large financial incentives for the manufacturing of vehicles and subsides of up to USD$7,500 for consumers to buy EVs.
“The Australian Government has consistently said that it is using the US scheme as a guide. Rushing to introduce a scheme, in just 9 months time, without learning from the US experience is recipe for a disaster in Australia,” Mr Weber said.