Average CO2 emissions for new passenger cars and light SUVs (categorised as MA vehicles by the federal government) sold in the 12 months to March 2023 reduced from 146 grams per kilometre to 131g/km, according to the Federal Chamber of Automotive Industries (FCAI).
That means they more than doubled the FCAI’s target of a four per cent annual reduction and appear well on the way to reaching 100g/km by 2030, as per the voluntary emissions reduction standard adopted by the industry in 2020 following inaction on new CO2 legislation by the previous federal government.
However, due to the growing popularity of (mainly diesel-powered) utes and large SUVs, average CO2 emissions for heavy SUVs and light commercial vehicles (MC and NA categories) increased from 212.5 to 212.8g/km.
That’s a lot more CO2 than the FCAI’s self-imposed 2022 target of 189g/km for MC/NA vehicles, and follows a three per cent increase in 4x4 ute sales in 2022, when demand for large SUVs also increased by almost five per cent.
FCAI chief executive Tony Weber said the 2022 CO2 results “demonstrated the challenges of transitioning to a zero-emission light vehicle sector in Australia” in the absence of a government-mandated CO2 standard.
“Globally, there is currently a limited supply of batteries and supporting technology to meet the demand for all new vehicles and, in particular, the bigger vehicles which a large proportion of Australians choose to buy,” he said, adding that affordable EVs are unlikely to become a reality in Australia before 2030.
“Development work is being undertaken by car-makers across the world to overcome these challenges. However, we are not likely to see a significant improvement in the availability of these vehicles at prices many Australians can afford until at least the end of this decade.
“We have the opportunity to establish a standard which gets us on the pathway to reducing emissions, supports car-makers to attract the best low-emission technology to the Australian market and provides Australian consumers with certainty and clarity around future vehicle availability.
“Attempts to simplify our journey to net zero as one that can only be achieved through electric vehicles ignore the buying preferences of Australian consumers, market supply realities, price and the very real impact of other low-emission technologies.
“All FCAI members are aligned on the need for a fuel efficiency standard which considers consumers, the unique nature of the Australian market, product availability, affordability and the full range of zero- and low-emission technologies. We look forward to continuing to engage constructively with the federal government to bring this to reality,” said Weber.
The FCAI will soon release its 2022 CO2 report for individual car-makers, revealing the lowest and highest emitting auto brands.