Sep 12, 2008

Vehicle Fuel Efficiency Report Released for Public Comment

Vehicle Fuel Efficiency Report Released for Public Comment


The Hon Anthony Albanese

Minister for Infrastructure, Transport,

Regional Development and Local Government

Leader of the House

Member for Grayndler

September 12 2008

Public and industry comment is being sought on a discussion paper on measures to increase the fuel efficiency of the nation’s car fleet.

We are today releasing this paper on behalf of the Australian Transport Council and the Environmental Protection and Heritage Council in response to a COAG request to investigate vehicle fuel efficiency measures aligned with international best practice.

Instead of advocating the adoption of any particular measure, the discussion paper evaluates eight potential measures to improve fuel efficiency and urges interested parties to provide their views.

The measures include:

  • CO2 emission targets for new light vehicles (voluntary or mandatory);
  • differential registration and stamp duty charges for new light vehicles based on CO2 emissions;
  • direct financial incentives for low emission vehicles;
  •  fleet purchasing frameworks which incorporate CO2 reduction objectives;
  •  inclusion of fuel consumption and CO2 data in new vehicle advertisements;
  • international standards/labelling requirements for non-engine components which impact on CO2 emissions;
  •  an environmental rating scheme for heavy vehicles; and
  •  a technology demonstration scheme for Australian commercial road transport fleets linked to CO2 outcomes.

The transport sector is the third largest and one of the fastest growing sources of carbon pollution in Australia, with more than 14 million registered vehicles on our roads.

There is no silver bullet for reducing CO2 emissions from the transport sector– instead we need a structured and measured approach to this issue.

The Australian Government’s Carbon Pollution Reduction Scheme will be the primary mechanism for reducing CO2 emissions on an economy-wide basis. Reforms to address fuel efficiency will need to be complementary to the scheme to help reduce travel costs and carbon emissions for Australian motorists.

Public comment closes on 7 November 2008. The discussion paper is available at: