The Federal Chamber of Automotive Industries (FCAI) has responded to the United States’ recent Environmental Protection Agency (EPA) amendment of its emissions reduction targets and timeline due to consumer and manufacturer impacts.
FCAI chief executive Tony Weber says the US has joined the UK and New Zealand in reviewing the pace of the introduction of strict fuel efficiency standards and allowing more time for consumers and vehicle makers to switch to more efficient models.
He now wants to see this same change made by the Australian federal government.
“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-emissions vehicles into the local market,” Weber says.
“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.”
Weber says there’s no value in introducing an emissions scheme where the ambition outweighs the reality of market supply and demand, only to wind it down later.
He also wants to see more incentives introduced over time to encourage the sustainable change.
“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,” Weber says.
“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 federal government has consistently said that it is using the US scheme as a guide. Rushing to introduce a scheme in just nine months’ time without learning from the US experience is a recipe for disaster in Australia.”